The Gadfly: Raising Small Business Tax Rate A Lousy Idea


Mike McCarville

Government’s insatiable appetite for more and more of our dollars is one of the most disturbing trends of recent years.

It occurs on the federal level and on the state level. State leaders talk about a small income tax cut as if it will really mean anything to the average taxpayer. Federal officials discuss cutting taxes here and raising them there.

The New York Times reports that President Obama is reviving an old proposal to lower the corporate tax rate from 35 percent to 28 percent (and 25 percent for manufacturers). Obama’s push to lower the corporate tax rate to 28 percent comes less than a year after he raised the top individual income tax rate, paid by many small businesses, to 39.6 percent.

In a speech delivered Tuesday afternoon, Obama did not explain why he thinks it’s a sound economic idea to raise the top marginal tax rate on small businesses but lower it for corporations.

Never having been in business himself, and always being a spender ot tax dollars, Obama has not a clue of the impact an increase on small businesses will have. He’s never faced a bottom line, or made a payroll, or paid taxes on his small business.

Small businesses today already are hamstrung by taxes and regulations. And while small businesses provide a majority of jobs in America today, Obama and others seem hell-bent on taxing them into failure.

Raising taxes on small businesses is a lousy idea,  an economic depressant that is counter-productive and onerous.

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