I consider myself an independent, and I voted for President Obama. I would like to correct a common misconception of those who fall under the category of "wealthy," according to the tax code (couples earning over $250,000 in annual income).
This tax bracket carries with it a perception of the ultrawealthy. I do not consider myself wealthy. I am a small-business owner. As a result, all profit from my company funnels directly into personal income on my annual tax filings, pushing me into the top tax bracket when my business is successful and growing. However, there is a big difference between company profit and the actual income that I bring home.
When my business is growing, my profits have to be reinvested in the company. We carry more inventory and invest in more machinery. Our accounts receivable also grow, which means that more customers owe us money. None of these business "assets" are in the form of actual cash that I could say, bring home to buy groceries, yet they still count as income as far as my taxes are concerned. When my business is growing, my tax burden grows, while my actual take-home salary remains stable.
When my business is not growing, this tends to not be a problem. So in essence there is an incentive for small-business owners like me not to grow, which results in less job creation. I have heard a proposal out of Washington that will attempt to offset the impact of increased taxes on the top bracket by giving tax breaks to companies that invest heavily in research and development. But that's geared more toward helping larger companies in the technology sector. What about the rest of small-business owners who don't have an extensive R&D function?
We need a way for small-business owners to only be taxed on the money they take home, thus giving more incentive to reinvest in their businesses which, in turn, adds more jobs to a fragile economy. But for now, small-business owners and those who work for them are the real losers if Congress decides to allow only the Bush tax cuts for top wage earners to expire.