I am a job creator who creates no jobs: I should add that I am in no danger of being caught in the net of President Obama’s proposed millionaires’ tax. I pay the accountants a few thousand dollars, and they make sure I am not paying more in taxes than I should be. (Note to the IRS: They do this in ways that are conservative, entirely above-board and so innocuous that they should not attract your interest in the slightest.)
While there is something absurd about being a one-man corporation, it’s a rational response to an irrational tax code. If lawmakers got serious about tax reform that removed loopholes, the money spent on accountants and actuaries (valuable though they are) could instead be used to grow the economy or to pay the federal debt. But that’s a matter for another day.
At the moment, the Ink-Stained Inc. case study, should the Harvard Business School wish to study it, is a reminder to be skeptical of the “job creator” argument in the tax debate. “It’s a good example of the murkiness of what we mean by small business and the connection to jobs,” William Gale, co-director of the Urban Institute and Brookings Institution’s Tax Policy Center, told me. “There’s sort of this notion of small-business innovation and job creation that just doesn’t necessarily hold.”
That’s even more so with Obama’s “Buffett Rule,” under which millionaires would have to pay a higher tax rate than a typical middle-class worker. As a practical matter, most already do. Gale said the rule would raise the taxes on only a few thousand people, perhaps as few as 1,000.
In a nation of more than 300 million, that’s not going to make a dent in job creation. Even the data analysts at Ink-Stained Inc. could figure out that one — that is, if we had any data analysts.
[It comes down to… if politicians are talking… they’re lying.]