Says Klein: “Every day, I hear from families that are still struggling with bills and people who can’t find a job no matter how hard they try, so I believe right now, our top economic priority has to be job creation. In order to achieve that, we need tax credits for small businesses that will help create new American jobs, while also promoting investment and growth. As we work to rebuild the economy, I support a one-year extension of the so-called Bush tax cuts.”
Actually, big businesses like Walmart and McDonald's create more jobs than small businesses. That is partly because businesses like Walmart and McDonald's squeeze out small businesses. Small businesses do create jobs. Just not as many as they used to.
Update: A Associated Press-GfK Poll finds 54 percent of Americans support raising taxes on those making above $250,000.
Quality of jobs created should be factored into the equation too, though. Sure, Wal-Mart and McDonalds create more jobs -- which pay shit -- but the most important point here is that low paying jobs do not have multipliers. If a small business creates a living wage wage that helps pay mortgage, bills, other expenses, and gives someone the money to take the family out to eat afterwards, then we've created a job with a multiplier. Good, small business jobs will create jobs for the service sector -- not the other way around. So the only way Wal-Mart and McDonalds can create their craptacular jobs is through the growth of businesses that create better jobs, and small businesses are an engine for such.
ReplyDeleteRegarding Bush's tax cuts -- which should be labeled as unaffordable deficit spending -- I think they highlight the need for change in the tax code. People got used to the cuts because they've been in use books for almost a decade now. And since the individual taxation rate on incomes $250,000 and higher is lower than business tax rates, many small business owners have made their personal and business taxes one and they same -- the claim all the profits made from their business as their own income. It isn't, of course, but if you can save a few percentage points off your taxes by legally filing a different way, you will. If the government would give clear boundaries to small business and personal income taxes -- taxing the former at a lesser rate -- there might not be so much arguing right now. And the arguing is causing trepidation among small business owners, who still have no clue what they'll pay in taxes a few months from now.
Hell, come to think of it, no that I'm out of college, working, and seeing that chunk of taxes taken out of my paycheck, I have no clue if I'll owe anything else in a few months. Back in 2000, before the Bush administration changed the tax brackets, I made a few hundred dollars more than I was allowed for the 15% bracket -- knocked me right into a 27% tax rate. Owed a few hundred dollars to the IRS in April, 2000. That sucked. I need to keep a close eye on that this year, save as much money as I can, and find some worthy charity orgs I can dump tax-free donations into if I find myself in that situation again.
ReplyDeleteAs of right now, though, I don't really know what my tax situation looks like. That's partially Washington's fault. So, uh, thanks gubermint.
Quality of jobs created should be factored into the equation too, though. Sure, Wal-Mart and McDonalds create more jobs -- which pay shit
ReplyDeleteAgreed. I was commenting on how Democrats and Republicans are overselling small businesses for job creation. We need small businesses to create jobs and banks to start giving loans to these businesses. Big banks don't see the profit in small business loans and small banks are scared of the risk.
Another problem is the United States make less things. The corporate engine for profit is CDS, hidden credit card fees and tricky bookkeeping. The is a lack of innovation.
Back in 2000, before the Bush administration changed the tax brackets, I made a few hundred dollars more than I was allowed for the 15% bracket -- knocked me right into a 27% tax rate. Owed a few hundred dollars to the IRS in April, 2000.
The tax burden changed because of the Bush tax cuts. No doubt about that. That has been a trend that started in the 70s.