Dem Senator Agrees Obama Tax Plan will Hurt Businesses

Dem Senator Max Baucus (ND) seems to agree that Bush's plan in 2001 to reduce taxes was good for small businesses and Obama's plan to raise taxes would hurt small businesses. The WSJ reports the following statement from Baucus in 2001:

". . . when the new tax relief law is fully phased in, entrepreneurs and small businesses -- owners of sole proprietorships, partnerships, S corporations, and farms -- will receive 80 percent of the tax relief associated with reducing the top income tax rates of 36 percent to 33 percent and 39.6 percent to 35 percent."

"Experts agree that lower taxes increase a business' cash flow, which helps with liquidity constraints during an economic slowdown and could increase the demand for investment and labor."

A total of 12 Democrats agreed with Baucus and voted for those tax cuts. If this is what they believed of those tax cuts, it also stands to reason that by raising those taxes, the reverse would happen. It's nice to know that at least a handful of Democrats understand this, even if they won't admit it publicly today.