S chapter corps
Sen. Democrats can’t produce a budget, but they can still find ways to raise taxes and redistribute income
The latest vote buying scheme? If you’re a small business man who owns an S-chapter corporation (that would be me), read it and weep:
Congressional Democrats and the White House have agreed to pay for a bill to freeze student loan interest rates for a year by raising taxes on so-called S Corporations, according to a top Senate Democrat and senior House and Senate aides, but Republicans said the tax increase may ensure the bill’s defeat in the Senate.
“We’ve got it worked out,” Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin, D-Iowa, said on Tuesday of the formula for paying for the legislation. Harkin spoke after Senate Majority Leader Harry Reid, D-Nev., said he will introduce within the next day a bill to prevent interest rates from doubling to 6.8 percent on July 1. That sets up Senate action on the bill next month after senators return May 7 from a one-week recess. A spokesman for House Minority Leader Nancy Pelosi, D-Calif., said she and House Education and Workforce ranking member George Miller, D-Calif., also signed off on the proposal.
The bill will require S Corporations with three or fewer shareholders who declare income of at least $250,000 a year to pay employment taxes, according to Harkin and Democratic staffers involved in the talks. An S Corporation is a specially structured entity that pays taxes under rules that allow earnings or losses to be passed through shareholders, reducing federal tax payments.
That’s right, S corps would be taxed to help keep interest rates on student loans down. Remember, the government now owns student loans.
And what have we looming right after the July 1st interest rate increase that might be hurt if that happens?
Why the November presidential election, of course.
Any wonder why the White House and Democrats are all for screwing small business to buy off a critical constituency?
It is no different in the category of desired political result than the $8 billion in spending HHS would do at the behest of the White House to slide the Medicare supplemental cost increase seniors will undergo from before the election to after.
This is outrageous. This is blatant vote buying and income redistribution to “pay” for Obama’s re-election. This is the essence of the Democratic ideology laid bare and the deviousness and immorality of their methods exposed for all to see – if they’ll see it.
No one makes anyone take out a student loan. And although it may be expensive, decades worth of those who’ve gone before have acted like adults and paid off the obligations they agreed too.
Now, if the Democrats get their way, it will be the job of those who’ve risked all to open a small business and built it with sweat equity and delayed gratification to pay to keep government controlled interest rates down?
“I don’t think anybody believes this interest rate ought to be allowed to rise,” Senate Minority Leader Mitch McConnell, R-Ky., said Tuesday. “The question is, how do you pay for it? How long do you do the extension?”
Republicans are “in the process of discussing it among ourselves,” McConnell said.
Don’t even think about it Mr. McConnell! If, as Obama has said, it is wrong to raise taxes in an economic downturn, it is ALWAYS wrong. And if you think we’ve turned the corner economically, you’re not paying attention.
Government decided to take over the student loan business and now government can suffer the consequences of its actions. I have no desire or intent to bail it out.
If this doesn’t make you angry as hell then I’m fairly certain which lever you’re pulling in November.