Is Small Business Tax A Misnomer
Thursday, December 30th, 2010The small business tax – a misnomer if ever there was one, what with all of the deductions which can be claimed, all of the expenses and losses that amount to thousands, if not tens of thousands of dollars per year.
Yes, let’s be honest, businessmen (and women) are usually crying poverty. However not even close to some tyrannical small business tax, rates continue to be within the range of historic lows, at thirty-some-odd percent that, modified by those aforementioned “expenses” and “losses” (yeah, right), could make the effective tax rate a mere twenty or less! Compare that to that of any single person whose net earnings are typically some twenty-five percent less his or her gross income.
To put things in perspective, take into account that Republican President Dwight D. Eisenhower, who ran one of the most business-friendly administrations ever, presided over corporate taxes of more than ninety percent! And still no person ever complained to Eisenhowever about how economic growth had been hampered. Yet today’s business person routinely complains about being hamstrung by usurious taxes, even though there is no “small business tax.” Indeed, apart from the expenses and losses that may be claimed against what one owes Uncle Sam, the government in fact has a number of special subsidies set up to help small enterprises!
Could it be just greed, pure and simple, that makes the typical entrepreneur such a complainer in terms of sharing in the burden of funding the common good? Exactly what is with the Tea Party ideologues who believe that an every-man-for-himself attitude is best for society in the end ? A strange mood has long taken hold of the country ever since Reagan, where people wave the flag while passing the buck. And yet the prevailing financial crisis, due to the Wild West ethos of economic libertarianism, has many demanding even less oversight and regulation!