Read the following and you will see the job killing that this new taxation would impose. For all of those fools in the Gov, you can't collect more taxes if you run those out of business from whom you propose to collect more taxes.

via Larry Levin:

Double Taxation

If you hadn’t noticed, the market was body slammed today.  Last week’s “mark-‘em-up-into-the-month-end-close” rally is over. Now that the month’s good close is behind us, the market can get back to fretting over oil and daily gasoline price hikes at the pump.  The S&P closed down -1.55%.

This tax news came out yesterday and may have flown under the radar for most: Tax-Cheatin-Timmy wants to raise your taxes if you are self-employed. 

“Congress,” says Geithner, “has to revisit this basic question about whether it makes sense for us as a country to allow certain businesses to choose whether they’re treated as corporations for tax purposes.”

Small businesses can currently choose to be taxed as a corporation or a variety of other ways such as; partnerships, S-corps, and others.  But the guy at the IRS who CHEATED ON HIS OWN TAXES, believes the government shouldn’t give you a choice to be an S-corp and should be DOUBLE taxed.  

According to some reports, Tax-Cheatin-Timmy believes his idea would allow the government to tax an additional $3 trillion.

Let’s assume you own a small business and then make the “crazy” assumption that you pay yourself, you would be double taxed as follows.

$100,000 gross
 -$15,000 FICA/Medicare
 -$29,750 Corporate Income Tax (35%)
$55,250 is the balance which will be taxed again
-$19,338 for Personal Taxes (35%)

You now have $35,912 net income (36% of the gross) to be taxed by the state, county and city.

Boy-howdy this sounds like a great jobs builder!  Luckily small businesses don’t generate (cough) many (cough, COUGH) jobs.