MiddleClassBill's Blog | Talking Points Memo | Obama to eliminate capital gains taxes on small business??

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Obama to eliminate capital gains taxes on small business??

October 14, 2008, 5:09PM

What capital gains taxes are paid by small business owners?? Did Obama flub this one?? Last time I checked small businesses pay income taxes, not capital gains

This is right from his website - "Provide Tax Relief for Small Businesses and Start Up Companies: Barack Obama and Joe Biden will eliminate all capital gains taxes on start-up and small businesses to encourage innovation and job creation. "

http://www.barackobama.com/issues/economy/

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I think he's referring to sole proprietorships (where the business owner reports business income on a personal tax form, including capital gains).

Posted by Joe Perez
October 14, 2008 5:33 PM | Reply | Permalink

Quick Google result:

Basically, a capital gain is the result of selling an asset for a higher price than you originally purchased it for. Theoretically, this could apply to any asset your business owns, but it is most commonly applied to assets such as investments and real estate.

Posted by demosaur
October 14, 2008 5:46 PM | Reply | Permalink

Sole proprietorships report business income on their personal tax returns - but it's income, not capital gains. The money that people make from running their own businesses is considered income, not capital gains.

I think Obama whiffed on this one. Yikes

Posted by MiddleClassBill
October 14, 2008 7:07 PM | Reply | Permalink

Obama to eliminate capital gains taxes on small business??

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