I just stumbled on the most recent blog post written by Karen Kerrigan, President and CEO of Small Business and Entrepreneurship Council (SBE Council) about the recent business tax proposal that has just moving through the Congress, that will definitely impact small business owners and entrepreneurs considerably.
Ms. Kerrigan wrote that according to the analysis of the Joint Committee on Taxation report, should this new tax proposal approved, out of the proposed $338.8 billion tax hike on the so-called “wealthy earners,” 47 percent of it will be the burden of small business owners.
In my opinion, this is not helping the US economy, at all. Yes, the raised $338.8 billion could probably save the day, but as long as the US manages its finance like this so far, that $338.8 won’t do much to jump US’ economy (and global economy, too.)
Small business owners are the ones who should receive incentives and tax breaks – they work hard to build their business through difficult times and pushing their limits to be able to support staffs. If their pay cut, how do you think they impact the economy? In a good way? I doubt it.
Yes, Obama’s policy in loan modification is plausible. I agree that today is all about survival. But I think it simply just like the circle of death – Pressure on small business owners and entrepreneurs will affect their businesses and employees. The affected businesses and employees will probably result in more problems, which include employee layoffs. The layoffs will affect… guess what, people taking more loans to keep ends meet – there goes the loan modification policy… what next is… more debt, and more tax proposal to take more money from business owners and entrepreneurs.
You might think – This bloke doesn’t know anything about US economy. Yes, you are right – But what I know is that what US decides will affect global economy. That’s the fact you can’t deny.
All in all, I agree with what Ms. Kerrigan said, that “raising taxes now on any individual or business remains an unwise and counterproductive policy measure.” I couldn’t agree more.
What is your opinion? Have your say by commenting on this blog post :)
Raising business tax is counterproductive, indeed.
Image by Bob Jagendorf.