Tom Emmer lie number thirteen: gross equals taxable income

by: The Big E

Tue Oct 05, 2010 at 20:00:00 PM CDT

Tom Emmer wants Minnesotans to believe that taxable income is the same as gross income.  This lie is central to his criticism of Mark Dayton's budget.

Emmer asserts that if you make $130K gross as an individual and $150K gross as a couple, Dayton's plan will "hammer" you.  Host Gary Eichten pushed him on this asking if gross wasn't different from income after deductions, but Emmer failed to answer the question and kept pressing his lie.

The truth is that any small business owner with a competent tax advisor will have plenty of deductions and if they're pulling 130K as an individual or 150K as a family after deductions, they're doing really well.  The vast majority of small business owners take home is well below this.  

But Emmer won't admit it.

EMMER:  Senator Dayton has failed to propose a complete budget.  Sen. Dayton has acknowledged that his numbers don't balance.  He's not being truthful about it and he needs to be honest about it.  How deep is he going to go?  What is he not telling us about what he needs to tax?  How's he going to raise the billions of dollars that he believes that are necessary to allow govt to continue to grow?

Let's go based on fact.  The fact is that most small businesses ... file personal income tax returns.  Sen. Dayton's initial proposal which he has subsequently it uh doesn't balance, it doesn't work.  His initial proposal which he keeps trying to refer as tax the rich it will actually tax joint filers at $150,000 or single filers at $130,000.

Now, granted, John, if that is take home earnings, that is a great living.  But when you are running a small business as I have you're filing a personal tax return, you know what, that $150K gross most of it is getting pumped right back into that small business.

A small business owner is not just trying to survive just with their own mortgage and uh food and clothing and taking care of the kids, but you're trying to grow your business for future opportunities for you and your family as well as for those that you employ...

Gary Eichten:  Isn't that tax deductible?

EMMER:  The problem is, Gary, that this $150K tax filer will now be defined as wealthy and I'm going to suggest that sure you can deduct whatever but we're talking about gross revenues at $150K in a small business.  What Sen. Dayton proposal will hammer all small mom-n-pop businesses across this state.

Gary Eichten;  He [Dayton] says he's only talking about taxable income.  So it sound like to be affected by it you'd actually need to have $150K in your pocket before you'd have to pay an extra tax.

EMMER:  That's if his budget balanced, Gary.  Let's start talking about the elephant in the room that nobody wants to acknowledge.  Sen. Dayton has proposed a plan is billions of dollars short.  How low is he going to go?