Joe Wurzelbacher “Joe the plumber”.  He was mentioned a total of about 33 times from both McCain and Obama in last nights debate.  While they both brought his name up they continued to be polar opposites in how they will tax Joe.

Stripping away all the rehtoric, McCains plan is to provide small business owners (like Joe wants to be) with tax breaks.  This would allow the company to grow, purchase new goods and equipment and hire more employees.  Provide them the incentive to be successful. 

Obama draws a rigid line.  If you make more than $250,000 you will be taxed.  The wealth must be spread around.  I don’t see where there is incentive for a small business owner to be successful.  Why push through the threshold of $250,000 and be taxed up to 50%.  Small business, defined in the U.S. as companies with less than 500 employees, create 75% of the net new jobs in the U.S. economy.   Taxing them out of existence would be detrimental to our economy.  A couple other points that aren’t clear:

• What also isn’t clear is if the $250,000 is gross profits, net revenues, etc.
• What if there isn’t enough tax revenues at the $250,000 level.  Do they redefine that number and bring it down to $200,000 or $100,000.

So what happens if the small business owner doesn’t grow his/her business or new businesses aren’t started.

• Unemployment increases
• Tax revenues decrease
• Innovation decreases (Small business provides 55% of all innovations and about 14 times the number of patents per employee)

Congratulations Joe!!!  I hope that the added attention doesn’t drive your business into the greedy $250,000 level.