Small Businesses Grew Twice As Fast Under Clinton Tax Rates - Travis Waldron

House Speaker John Boehner (R-OH), in highlighting his opposition to the letting the Bush tax cuts expire, said, “Raising taxes on small businesses will kill jobs in America,” Boehner said. “It is as simple as that.”

Economic evidence, however, contradicts that view. Under President Clinton, the top marginal tax rate was 39.6 percent, where it would return if the high-income Bush tax cuts expire at the end of the year. But small businesses grew twice as fast during Clinton’s time in office than they did when President Bush occupied the White House.

Non-partisan reports from the Congressional Budget Office and Congressional Research Service show that the expiration would have little effect on economic growth, and the Joint Committee on Taxation found that only 3 percent of small businesses would be hit by the increase.

According to a Treasury Dept. study cited by CBPP, just 7.6 percent of the income taxed at the top two income tax rates comes from actual small business income.

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