Bill Clinton: “Well, there are 7 million Subchapter S corporations in America. Of those 7 million, 400,000, or far less than 10…”

“Well, there are 7 million Subchapter S corporations in America. Of those 7 million, 400,000, or far less than 10 percent, will have any income tax increase at all under this program. All of them, if the program passes, will have the expensing provisions of the Code, that is, they'll be able to just immediately write off $20,000 rather than $10,000 of expensing. So I will say again, over 90 percent of the small businesses in this country will get a tax break under this program. To those who will pay higher taxes because the income taxes on the upper 6 percent of the country are going to be raised--it will be roughly small businesses with an income above $140,000 adjusted gross income--to them, I would say there are ways to avoid that through reinvestment, just as there are for individuals. Keep in mind, this plan also leaves the rates where they are for capital investment, so if you reinvest in a business, your tax rates don't go up. If you invest in a new business or a small business with a capitalization of $50 million a year or less, and you hold the investment for 5 years, your tax rates go way down under this plan. We also extend the tax incentives for research and development, which the Republican plan did not do, so that you can take your taxes down if you do more R&D expenditures, which is what keeps the economy growing. Another thing that we do I think is very important is to revitalize the real estate and homebuilding sectors of the economy by returning to the incentives which exist there. That's why the homebuilders and the realtors, two groups that normally are associated, frankly, more with the Republican Party than the Democratic Party, nationally are supporting this plan, because it's good for that sector of the economy-- again, something not in the Republican plan. And one final thing I would say is that we extend the tax credit for health insurance for self-employed people, something that was not done under the Senate Republican plan. So in effect, all those people would have had a tax increase if the Republican plan had passed. So I think if you look at the small business sector--and I want to compliment the Wall Street Journal. They've run a number of stories, factual stories, in the last week which have analyzed the facts of this economic plan as against the outrageous and inaccurate attacks being made on it which sort of show this. I mean, one of the people who was testifying against our plan for some group was given the facts of her business, and she said that's not what they told me this did. And it turned out she got a tax decrease instead of a tax increase. Economic Program”