Senate majority leader Harry Reid suggested he supports raising taxes on small business owners to 39.6 percent while lowering the tax rate on corporations to 28 percent. In a press conference at the Capitol Thursday afternoon, Reid, joined by other members of the Senate Democratic leadership, repeatedly stated that “Democrats are all on the same page” with regard to a plan to avert the so-called “fiscal cliff” by agreeing to raise marginal tax rates on top earners.
Under this Democratic plan, which has the support of President Barack Obama, the rate on earners making over $250,000 a year would see their rates increase to 39.6 percent, and small business owners who file their taxes as individuals within that upper bracket would also pay that higher rate. The president has also voiced support for lowering the corporate tax rate from 35 percent–one of the highest rates in the industrialized world–to 28 percent.
I asked Reid about his support for both an increase in tax rates on small business owners and a decrease in the corporate tax rate.
“Senator Reid, do you support the president’s plan to lower the corporate tax rate to 28 percent?” I asked.
“I am not going to be rude to you, but I just answered that question,” Reid responded. “We have made our proposal, and that’s the proposal we have. The president has made a proposal to the Republicans to raise the top rates, and we’re not going to negotiate that here.”
In fact, Reid only said he and his fellow Democrats are “on the same page” with Obama on tax rates. I asked a follow-up.
“So why would 28 percent be good for corporations but 39.6 percent [be good] for small businesses?” I asked.
Reid refused to answer and moved on to the next question.
