Senator Reid Looking at Increasing Social Security, Medicare Taxes for the Wealthy

Senator Harry Reid (D-NV) is looking at increasing the Social Security and Medicare taxes for the wealthy per published reports from last week. Since President Obama has said he won’t increase taxes on those making less than $250,000, this would create the “doughnut” hole for the wealthy and the self-employed.

Consider, though, how stifling such taxes are on economic development. Small businesses are the driver of the economy. Studies show that over 80% of new jobs come from small businesses. Why would a small business expand when the government will just take more money?

The stated reason for the tax would be for health care. Frankly, the current Administration and the current Congressional leadership has little clue about economic development. The best result for the current health care legislation is the circular file. That said, I expect something to pass just so that the Administration can say they passed something.

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