Not only are you right, Tongyun, but you're understating the reality.

Mr. Obama has said that he'll lower taxes on 95% of taxpayers (and make the top 5% pay an increased rate). It is important to note that 40% of "taxpayers" currently pay no taxes at all after their (standard) deduction is figured. I presume that he intends to cut a check to those 40% since he can't cut their taxes. The thing is that most of those top 5% are actually not individuals at all. The current tax code allows small businesses to file as "individuals" which is easier and less expensive than filing business tax returns. This means that the business files a "personal" income tax return. Those businesses are going to be the largest segment that will be hit with the increased taxes. So it won't only be "major corporations" that feel the increase, but also all of the mom and pop businesses around the nation.

Obviously, these businesses will also increase their prices to compensate, just as the major corporations will. That means that it won't be Wal-Mart, but your local dentists, doctors, lawyers, mechanics, restaurants, movie theaters, etc. Yes, nearly every business that you do business with will have a tax increase to push this to the consumer.

-- Jeff

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"Government is not the solution to our problem, government is the problem." --Ronald Reagan