More than three-quarters (77.1 percent) of business owners surveyed by Millionaire Corner believe a tax increase is inevitable. But from where will the hit come and who will, or should be most impacted?
While nearly 70 percent of overall investors are in favor of the so-called “Buffett Rule” as proposed by President Barack Obama in his debt reduction plan, business owners (along with senior corporate executives) expressed the most support for presidential candidate Herman Cain’s 9-9-9 tax plan.
The “Buffett Rule” was inspired by the billionaire investor’s New York Times op-ed in September, in which he called on Congress to “stop coddling” the mega-rich and raise taxes on those who earn more than $1 million. Our survey finds across the board support for this proposal. Of the 69.1 percent of investors who favor or strongly favor this option, nearly 72 percent have a net worth between $100,000 and 500,000. Even just over 67 percent of millionaires support it. Business owners are less enthusiastic at 57.5 percent. They are also most likely to say they are not in favor of the proposal (42.5 percent vs. 24.2 percent of overall investors).
They were split on whether taxes should be raised on those with more than $250,000 in income. Forty-five percent said yes and 45 percent said no. In comparison, nearly 48 percent of investors overall favored the idea, while 38.1 percent were not.
Much more palatable to business owners is Cain’s much debated 9-9-9 tax plan, which translates to a 9 percent income tax, 9 percent sales tax and 9 percent corporate income tax. As Cain rises in the polls and flirts with front-runner status, this plan is getting much more scrutiny. It was one of the primary points of contention between the Republican candidates at this week’s debate in Las Vegas.
Of the investors we surveyed, less than 20 percent of investors said they were very familiar with the plan, while nearly 48 percent said they were somewhat familiar with it. Familiarity increased with wealth level. Thirty-two percent of those with between $100,000 and $500,000 said they were somewhat familiar with the proposal compared with nearly 53 percent of those who have more than $1 million.
Conversely, those in the $100-000-$500,000 group were the most likely to be not at all familiar with the proposal (17 percent), while those with over a million were the least likely not to have heard about it (10.4 percent).
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.