Posted by
Rich from NW Indiana on Tuesday, October 14, 2008 3:20:50 AM
Obama just doesn't get why taxes hurt small businesses. A good example of that ignorance is this
story. A self employed plumber asks why he needs to be taxed even more. Obama's answer proves that he just doesn't get it at all.
Today's entrepreneurs and small businesses endue very high tax rates. Many may combine their business income and their personal income. That happens because most entrepreneurs only pay themselves when there is money to do so. So it may appear that they make big money when they really aren't. The government doesn't care if the money belongs to the business or its owner. Paying taxes on $250,000 is really unfair when you are not actually paying yourself no where near that amount, but the business cash flow may be near that number. You shouldn't have to pay taxes on money that really belongs to your business, why individuals need to pay that is bad policy on the part of government.
I have never seen a study (because there isn't one) on how many jobs that were not created because of high taxes on the small businessman. I believe the high income taxes has prevented millions of new jobs from being created because of it. It has also prevented people from even starting a small business. It is a big negative to start a new business knowing that the government thinks of your new enterprise as a bottomless piggy bank.
Never mind that the majority of new jobs created in this country are made by these small businesses and entrepreneurs. It amazing that most jobs are created that way, in spite of all the government roadblocks, free enterprise still manages to win!
Really what is better for society? That an entrepreneur create a new job, or pay higher taxes? You cannot do both, today the high taxes are paid not the new job.
Wouldn't it be better to increase the amount of Americans that have their own businesses? All these people would create their own jobs, lowering the amount of people that need to be employed by others. Today's high taxes lowers the amount of new businesses that would have been started so it is time to change the unfair taxes on those that create economic activity.
Obama has never run a business. It really shows by the lack of economic understanding. He most likely will never run a business. He doesn't understand how one works, and how taking too much money away destroys its economic activities preventing it from creating a new job. $250,000 sounds like a lot of money but it really isn't and that will hit MANY little companies with even more taxes.
Taxing more will not help the people he thinks it will help. Helping poor people isn't the job of government, it the job of private organizations and charities. Little businesses are not greedy in any way when it comes to not wanting to pay more, they already are paying too much. Higher taxes will prevent many of these poor people from ever finding a job because the small company didn't create the new job because it had to pay more taxes. Its a really bad cycle that will only get worse if taxes keep rising.