Gerald needs remedial economics.

Gerald Bunger of Sunnyvale must have flunked Economics 101. In response to a letter writer's contention that additional taxes on "the wealthy" would choke small businesses, Gerald says that "it should be noted that it is not a tax on the operations of a small business or its employees. It is actually an income tax on the owner of the small business . . . an increase in their tax rates is not as burdensome as it might appear. "

Well, Gerald, in the first place, at least some of the "rich" ARE their businesses. They are sole proprietors, and their profits are taxed on their personal income tax returns. There is no separate business tax. In the second place, Gerald, when those "rich" people who are incorporated start getting more of their money taken away, they're going to stop investing as much in their businesses -- it will take more of their profits for them to maintain their lifestyles. When they stop investing as much in their businesses, they'll likely let an employee or two go and pick up the slack themselves. They might raise prices, thereby having their customers fund the tax increase. When their employees are laid off, they'll head down to the unemployment office which is already overburdened, and the unemployment taxes on the business will go up. Those who are laid off and those who are paying higher prices won't have as much money to spread around in the economy, and the grocery stores may find themselves laying off a stocker or a sacker or a butcher.

I don't know what you do for a living, Gerald, but I'll just bet you work for one of those nasty rich people. And if it happens to be your position he eliminates to make up for his increase in taxes, he can soften the blow by telling you that being laid off "is not as burdensome as might appear."

"Clarification on 'business' tax." The Dallas Morning News; May 7, 2011; p. 22A.