The Reality Of Small Business Taxes
11th December 2010 by Tax Man No CommentsThe small business tax - a misnomer if ever there was one, what with all the deductions that could be claimed, all the expenses and losses that add up to thousands, or even tens of thousands of dollars annually.
Yes, truth be told, businessmen (business women) are usually crying poverty. But far from some tyrannical small business tax, rates remain in the range of historic lows, at thirty-some-odd percent that, adjusted by those previously mentioned “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 usually some twenty-five percent less their gross income.
To put things in perspective, consider that Republican President Dwight D. Eisenhower, who ran one of the most business-friendly administrations ever, presided over corporate taxes of well over ninety percent! And yet no one ever complained to Eisenhowever about how economic growth had been affected. However today’s entrepreneur routinely complains about being hamstrung by usurious taxes, despite the fact that there is no “small business tax.” In fact, besides the expenses and losses which may be claimed against what one owes Uncle Sam, the government in fact has a number of special subsidies in place to help smaller businesses!
Is it just greed, pure and simple, which makes the typical entrepreneur such a complainer when it comes to sharing in the burden of funding the common good? Exactly what is with the Tea Party ideologues who feel that an every-man-for-himself attitude is the best for society in the end ? An odd mood has long taken hold of america ever since Reagan, where people wave the flag while passing the buck. And yet the current economic crisis, a result of the Wild West ethos of economic libertarianism, has many demanding even less oversight and regulation!
