The 'rich' aren't who you think they are

After reading many opinions like those of Diane Niesman “No Tax Cuts for the Top 2 Percent” printed Dec. 4, I feel the need to provide an example of taxing “the rich.”

I work for a small family operated business. We have 10 employees with revenue of $5 million. As a Subchapter S corporation, our company taxes flow into the personal return of our owner. If we have $500,000 left after costs and decide to buy more inventory, which is not deductible, the IRS taxes our owner as if that money was income on a paycheck. As a distributor, we need to have products in stock to earn the business of our customers.

In reality, no one at our company makes close to even half of the $250,000 threshold being discussed for ending the tax cuts. The end result is higher taxes on our owner which the company funds, meaning less money for expansion (we would like to add one more person).

To ride out the downturn without layoffs, we have cut every expense possible; no raises in three years, voluntary reductions in 401(k) contributions, we even cut the grass and plow our own parking lot.

If our taxes go up, 10 households in our community will feel the effect. The “rich” aren't always who you think they are.

Mike Longo

Glen Ellyn