Republicans in Congress, who are currently in the process of stalling a tax cut for the middle class because it would be paid for by a miniscule surtax on the wealthiest, are adamant that the president’s plan for a payroll tax break will hurt small businesses and the wealthy people they like to call “job creators.”
Today, an NPR reporter went looking for some of those job creators who would stop hiring once they’re hit by a 3.25 surcharge on their income taxes. The reporter did her due diligence and asked for names from Republican congressional leaders and business lobbyists. None of them were able to present her with a small business owner who would talk about being hurt by the millionaire’s surtax. Then she tried something new:
So next we put a query on Facebook. And several business owners who said they would be affected by the “millionaires surtax” responded.
“It’s not in the top 20 things that we think about when we’re making a business hire,” said Ian Yankwitt, who owns Tortoise Investment Management.
Tortoise is a boutique investment firm in White Plains, N.Y. Yankwitt has 10 employees and in recent years has done a lot of hiring.
As a result, Yankwitt says he’s had many conversations about hiring, “both with respect to specific people, with respect to whether we should hire one junior person or two, whether we should hire a senior person.”
He says his ultimate marginal tax rate “didn’t even make it on the agenda.”
Yankwitt says deciding to bring on another employee is all about return on investment. Will adding another person to the payroll make his company more successful?
For Jason Burger, the motivation is similar.
“If my taxes go up, I have slightly less disposable income, yes,” said Burger, co-owner of CSS International Holdings, a global infrastructure contractor. “But that has nothing to do with what my business does. What my business does is based on the contracts that it wins and the demand for its services.”
Burger says his Michigan-based company is hiring like crazy, and he’d be perfectly willing to pay the surtax.
“It’s only fair that I put back into the system that is the entire reason for my success,” said Burger.
For the record, both Burger and Yankwitt have made campaign contributions to Democrats in the past, but they say their views on the surtax are about the economics of their businesses and not their politics.
And they’re not alone.
“I, like any other American, especially a business owner, I want to make as much money as I can and I want to keep as much money in my pocket as I can, but I also believe in the greater good,” says Deborah Schwarz, who owns LAC Group, an information management firm with offices nationwide and in London.
Surtax or no, Schwarz says she hopes to keep hiring.
“We’re going to keep on writing proposals, going after contracts, hopefully winning them, and when we do we’re going to continue to hire people,” says Schwarz.
All of this contradicts the arguments about job creators being made by Republicans in Congress.
Republicans are stopping a tax break for the middle class because of a myth about “job creators” they they aren’t able to back up with any actual examples, while actual job creators are keeping on investing in their own futures and that of their employees.