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In with the Buffett rule here this year more than 36 million individuals will report small business income on there.
2011 personal income tax returns they -- partnership's sole proprietorship or S corporations.
Which often have one or -- shareholders but.
A coalition of small businesses are in support of the Buffett rule that again -- tax income of one million dollars or more at a tax rate of 30%.
Frank Knapp is one of those small business owners and CEO South Carolina small business chamber of -- TC he joins us there live from Columbia, South Carolina welcome TO.
So you are in favor of the bucket -- It's easy of course right proponent to suggest in South Carolina though there are very few small businesses earning more than one million dollars the -- -- be.
Subject to the but federal tax with your spots.
Well in South Carolina.
Really -- I could get all of the people who are claiming some to the small business income.
Over a million dollars in in my backyard for barbecued at play as -- slumped over.
They're not that many in South Carolina -- that might be more and and other areas of the country.
But in reality.
There's only about -- less than 1% of all taxpayers in this country report some small business income.
And that also make over a million dollars so it's it's very really a gave a few people in comparison to that all the taxpayers.
In on the obvious counter is what incentive would you have.
Why would you be ambitious than to grow your small business to profit more than a million dollars if -- negative be taxed so heavily.
Well look most small businesses are making anywhere near a million dollars.
People who start small business really want to work for themselves they want to do what they like.
And if they make money fine but.
Most of those of almost all of them are not -- -- -- -- think that there ever gonna make over a million dollars a year.
So this is not the Buffett rule was -- can be a disincentive for anybody to go into business it's not gonna hurt and tepid job growth at all.
Is it that you think you know wealthier people should pay more you support the proper role in general is that true.
We have -- to progressive tax system in this country.
It's based on the the concept that the more you make more income you have the higher tax.
Bracket perhaps tax rate that you should be again.
Those who can afford more should contribute more to the to a -- suffering TV I mean the president paid effective tax rate of twenty point 5% last year need 800000 dollars do you think he should pay more taxes last year.
It well I don't know that he would actually fall -- the Buffett rule.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I don't know that's enough for not -- he's already indicated that he is able to pay more.
We're only talking about the people making over a million dollars a year that -- and that arcades have some of the small business income.
It's not that many people it's a matter of tax fairness tax equity it will not hurt the economy.
When you see you know scandals like the GSA's scandal where it's taxpayer money going to send in turns to a spot in Palm Springs are you see things like.
-- -- -- Secret Service down in South America getting reprimanded for allegedly hiring hookers does that bother you that.
When we raise taxes that's where our tax dollars are going.
Well those taxed or maybe going to those things anyway regardless whatever effective tax rate that you -- in.
Just because there happens these sort of abuse that nobody supports.
On some public entities the spending money doesn't mean that we all get to say okay five -- -- pay any taxes.
Alright frank -- we appreciate you -- taken some tough questions this afternoon thanks very much for your time and insight thanks for the opportunity.
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