Entrepreneurs and small businesses are ideals of the American dream and democracy that are currently not nurtured but rather are trodden under by overwhelming taxes, suffocating laws and lack of access to capital. Small businesses are integral for creating new jobs and developing cutting edge products that sharpen America’s competitive edge in world markets.
As a result of encouragement by Obama in past budget negotiations, current tax rates for small businesses in America equal 39.6 percent. America’s small businesses are the highest taxed anywhere, and the damage caused by this unjust taxation creates an economic downfall that knocks the U.S.’s already suffering economy and diminished worldwide reputation into the mud.
As part of sequestration, cash flow to small businesses has been much impeded. Historically, small businesses have stimulated 65 percent of new jobs and they are drivers of economies coming out of recession. Now, add onto 39.6 percent the financial burdens imposed by the Affordable Care Act, and then value in the impeded flow of capital to small businesses, and some of the underlying factors of the anemic recovery from recession become obvious. Never has the U.S. economy recovered so poorly from recession than right now. Never before have policy makers pushed small businesses under their manipulations as right now.
Large corporations pay unacceptably low taxes and some of the richest corporations pay no taxes. These loopholes and schemes are widely practiced by large corporations, and cost U.S. taxpayers hundreds of billions of dollars every year. By raising small business tax rates to 39.6 percent, plus insurance, Obama has shifted economic burden from large corporations to small businesses. That this is allowed to continue is shockingly egregious to all taxpayers, deleterious to hard working small business owners, and downright mind numbing for entrepreneurs who would be brilliant.
A problem that daunts small businesses is complex, non-definitive tax codes. Tax reform needs to evolve that serves small businesses and simplifies tax codes so that small businesses are able to discern how they are truly affected by the rules, and that allows them to orchestrate and implement comprehensive, successful business plans. Americans need to go back to work at livable wages that affords buying power and thereby stimulates the economy, which naturally would benefit small businesses. But the current tax codes, insurance impositions and impeded cash flow are counter-productive to success. If Washington can get financial affairs in order then small businesses would gain confidence and take risks calculated for success, and that would put people back to work who would then buy products and services, and the entire U.S. economy would improve.
American entrepreneur success stories are often those of one, two and three person businesses creating amazing, cutting edge products and the ultimate in services. These products and services could have the ability to fuel commerce domestically and internationally. The whole world is constantly reaching forward for cutting edge products and ultimate services, and if America is unable to produce them, then it will be trodden under by other countries that will. By not supporting entrepreneurs and small businesses Washington stunts progress, degrades the future of upcoming generations, and disserves taxpayers. The land of opportunity and home of the great may very well no longer be America, and if it still is, then it will not be for much longer if change is not enacted that promotes entrepreneurs and small businesses.
Joan Brown ~ NEWSslinger.com contributor