Raising taxes for individuals with income over $250,000 will have a hugely detrimental outcome. This is because a huge number of small businesses are legally taxed as individuals. Raising taxes may be manageable for wealthy individuals, but small firms will be crushed by such huge tax increases proposed by Obama. The effects of this will be hard felt across the country, since small firms employ half of all private sector employees in the USA. [1] These small companies will see their investing and spending power vastly reduced and will lead to thousands of redundancies that will ensure the American economy remains stagnant! Low taxes are the key to economic growth, not high taxes and government spending.  [1] US Small Business Administration, FAQs,  , accessed 8/10/2012