rush limbaugh is a big fat idiot

I know I shouldn't be reading Rush Limbaugh, but it came up in a google search and I read it by accident. From Explained: Obama's Lies about Raising Taxes on Small Business:

Obama says that most small businesses do not earn over $250,000 a year. That is clearly a lie.

It is impossible. It cannot be true. Your own instinct tells you that. You in small business know full well it can't be true. Now, the employees of a small business might believe it. Most employees don't get to see the books. But if you're an employee of small business, and there are five or six other employees in your small business (and that's a small business) just add up your combined salaries and find out if your small business has enough to pay them. If you're making $50,000 a year at a small business and there are five of you, that's $250,000 right there.

Does he really not know the difference between gross and net income? Am I missing something or is he really being this purposefully misleading on something so fundamental?

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  • Jared

    I can’t stand listening to talk radio anymore, it encourages people to not think on their own. It’s so easy to blow things out your rear when the microphone is all yours. Honestly though, even when I did listen to talk radio, I couldn’t stand Rush Limbaugh. He’s such a hack.

  • Alec

    Whether you are a fan of Rush’s or not, we have to stay vigilant about the left being able to reinstate the Fairness Doctrine.
    This would be the death knell for Freedom of Speech.
    Alternative media is the only place we have to get the real information that the mainstream media fails to report- and sweeps under the rug.

    Wake up all you “Bitter Americans clinging to your guns and religion”- BHO has plans to form a civilian security force?

  • Crunch

    The lies are worse than you say. If the business is paying 5 employees $50K a year, that’s $250K that’s NOT profit to the business, as you say.

    If you (Joe) own the business by yourself, that’s $250K of expenses that are NOT income to you, just as if you paid $250K for concrete to do your job.If all 5 of you jointly own the business, that’s $50K of income to each of you, not $250K of income to each of you. That’s not the category of income that the entire debate has supposedly been about. And that’d be about right for a plumber, by the way, as the median salary is $47K. Joe The Fake Plumber made $40K in 2006. The entire Joe discussion has been a farce.

    Either way, Rush is just rousing the rabble to increase his ratings and ad revenue. Don’t listen to or read his stuff.
    It’s not meant to make sense. It’s meant to generate ratings. Pointing the light of reason on Rush’s words is just draining to you and pointless.

  • newton

    crunch is right, the 250k is a liability, and actually puts the business 250k in the red. i don’t think rush is an idiot. i think rush is a manipulative, lying, racist asshole with a drug problem & an ego the size of texas stadium. the people that would believe anything he says are the idiots.

  • Bill

    Chris, you ARE missing something…at least one thing. Obama’s “$250,000 or more” tax policy relates to personal income not business income. Only when those two categories overlap do you have the $250k or more policy relate to a business. This happens most often in “small” businesses, here defined as businesses where there is income pass through to the owner or ownership group. An S-Corporation acts this way, as does a Partnerhsip or, I believe, an LLC. So what Obama is saying is that if you receive more than $250k in adjusted growth income from all sources – including your pass through income from a small business, you will see a tax hike. It’s not the sum total of all your employees income, and it’s not the total revenue made by the business. It’s the amount that you as an individual receive, either as salary or net profits or both. If you look at it this way, you’ll see right away why this policy affects a much smaller percentage of small businesses than conservatives would like you to believe. Most businesses earning, say, $1MM, are paying that out to multiple employees and paying other expenses thereby dramatically reducing the money flowing directly to the owner or owners as taxable income. However, those that can afford to direct $250k towards themselves – which usually but not always requires a substantial stream of revenue into the business – will get hit with a tax boost.

  • Chris

    I don’t think I missed that, but thanks, I agree.

  • R. Francis Smith

    The small business I worked for tried their hardest to not have any income, between salaries, bonuses, operating expenses, reinvestment in growth resources, so on and so forth. I suspect they were typical.

  • Jackson Miller

    I have heard this line of reasoning from lots of people. In my case, we have a business that grosses well over a million dollars a year, but the net is considerably lower. It is possible that the business would make 250k, but “the business” doesn’t pay taxes, the owners do (LLC). Once you divide the net among the individual owners none of us touch the 250k threshold (and that is before deductions). If we were to a point where we were going to hit 250k I am sure we would redirect money into expansion thus reducing “income”.

    The problem is, most people actually do not understand this at all.

  • gavin

    i am not a rush fan, and generally am not his apologist (more or less can’t stand him), but could this be some lapse is language. ie, the expenses have to be paid somehow, so people generally say (and base success) a company is ‘worth’ not usually profit. my family runs a small business that is over 1 million in worth. profits are zeroed out cause we have a cpa who gets us to put all leftover funds after paying ourselves, employees and expenses into funds or some other investment.

    i get your point, but lets not always be alarmist to the alarmist. it helps nothing. and generally only fuels their influence

  • Anonymous

    Its personal income only, period.

  • http://uri stephen snell

    Those of you who can’t open your drooling mouths without saying, “The left,” “liberals,” and other catchwords like those, are WORKING FOR YOUR LABELS, MAN!!! Stop working for your labels and get a job that helps the PLANET, man!!!