The Heritage Foundation has done a much more realistic analysis of Obama’s tax plan that takes into account how higher-income individuals, many of whom are small-business owners, would respond to Obama’s $1.6 trillion tax hike.

In short, many of them would invest less in their businesses and hire fewer new employees. By Heritage’s reckoning, the Obama tax plan would reduce annual output by $196 billion and annual employment 1.1 million.

Considering how weak economic growth is at the moment, Obama’s $1.6 trillion tax hike likely wouldn’t even bring in $1.6 trillion. After accounting for its economic effects, Heritage estimates Obama’s tax plan would collect only about $700 billion in new revenues, or 44 percent of what Obama hopes to take in.