During a press conference today, Speaker of the House John Boehner (R-OH) reacted to Democratic Leader Nancy Pelosi’s (D-CA) suggestion that the Bush tax cuts only be extended for those making less than $1 million by saying that such a move would hurt small businesses and therefore job creation. In fact, he claimed that half of those making more than $1 million annually are small business people:
“I believe that raising taxes at this point in our recovery is a big mistake,” Boehner said at a Capitol press conference when asked about Pelosi’s letter…“Even under Ms. Pelosi’s argument, half of those who would get this higher tax are small-business people that are sub-Chapter S or other types of pass-through entities,” Boehner said. “At a time when we are trying to help small businesses create jobs, this proposal would kill jobs.”
This statistic is simply not true. In fact, it’s false according to Boehner’s spokesman Michael Steel. When Boehner made the same claim regarding millionaires and small businesses last year, FactCheck.org contacted Boehner’s office, and Steel “quickly admitted that the speaker was mistaken.”
Under a reasonable definition of small businesses, just 13 percent of millionaires can be considered small business owners. And just 0.5 percent of the nation’s small business owners cross that income threshold, making them the absolute top of the income scale.
Plus, at the end of the day, even if a millionaire makes his millions via a business that is considered small, the income tax is levied on take-home pay, not business profits. Anyone taking home $1 million annually should be taxed like a millionaire.