I watched Paul Ryan discuss the Republican budget on C-Span tonight. Taking questions from the audience, Mr. Ryan was asked how he justified not raising taxes on millionaires while cutting programs that serve the poor.
Mr. Ryan replied that the questioner's formulation was incorrect for this reason: the tax on millionaires proposed by the Obama administration would raise the taxes on small businesses that make over one million dollars a year. Since these businesses are the main source of job creation, the effect from the tax increase on millionaires would retard economic growth.
Here is my problem. According to Forbes, there are over 400 billionaires and over 12,000,000 millionaires in the United States. (It is projected that, by 2020, there will be over 20,000,000 millionaires in the US.) These are individuals, or people. These are not corporations.
It has been my understanding, and I'm quite sure that of the American populace, that talk of taxing millionaires applies to people, or households, that have income larger than $1,000,000 per year.
Mr. Ryan is saying that the tax applies to any entity that makes over 1,000,000 dollars per year, whether an individual or a corporation.
Obviously, one side or the other is confused about (or distorting) the context in which the tax debate is taking place. Or am I missing something here? I would dearly love to recieve an honest and informed answer.