A new study released today by Ernst and Young shows that the hike of the top two tax rates proposed by President Obama will lead to 710,000 fewer jobs and a decline in workers’ living standards. The National Federation of Independent Businesses said in a statement:
- The preliminary results of the study show business owners paying the top two rates account for:
- 72 percent of all S corporation income;
- 61 percent of all partnership income; and
- 13 percent of all sole proprietorship income.
The NFIB also cited recent research from the Congressional Joint Committee on Taxation that estimated "around 53 percent of business income would be impacted," should the tax relief on the top two individual brackets expire. This expiration would affect "an estimated 940,000 who earn business income."
