Originally posted by: frostedflakes
Originally posted by: Doc Savage Fan
Originally posted by: frostedflakes
As others have mentioned, higher taxes obviously don't help small business. I just think people blow the negative effects of a minor increase in taxes like this way out of proportion.
Not to mention businesses will benefit from government spending. If the new administration can deliver on reduced private health care costs, that would greatly reduce the burden on businesses (especially small businesses, which I understand are usually hit the hardest by health insurance, assuming they can even afford to offer it to employees). Infrastructure spending can potentially help businesses. For example, with government spending on broadband infrastructure, businesses may be able to get faster connections at a cheaper price than they would otherwise. Et cetera.
Lol...I get it...the trickle down effect. :roll: Between the huge downturn in the economy and now an additional 5% for Uncle Sam....I don't see a lot of good things happening here. We have small businesses employing 50% of our workforce and 'virtually' nothing in the stimulus package is going to directly help them. What gives?
Meh, I honestly don't think I've ever claimed supply side doesn't work. Obviously leaving more money in the hands of the entrepreneurs is good, some of that money will inevitably be used for job creation. My main gripe with supply side is that I think it benefits the elite far more than everybody else. IMO direct government investment in industry is a more efficient way to spur the economy. And I would have liked to see less welfare and more industry and infrastructure spending in the stimulus bill, I won't disagree with you there. Some of the spending in the bill should be very good for everybody, though (for example, spending for smart grid technology and health IT).
Reading around, it also sounds like these tax increases won't be affecting many small businesses that actually employ people. It seems like there's a lot more fiction than fact being thrown around about these tax increases.
http://news.yahoo.com/s/ap/200...o_co/fact_check_budget
The following statement in your linked article is a blatant falsehood, so it has absolutely zero credibility IMO. It appears to be "agenda driven" propaganda written by and for the partisan sheeple amongst us:
"But for one thing, most small businesses don't create jobs."
Here's the facts:
The Small Business Share of GDP, 1998-2004
Small firms:
? Represent 99.7 percent of all employer firms.
? Employ about half of all private sector employees.
? Pay nearly 45 percent of total U.S. private payroll.
? Have generated 60 to 80 percent of net new jobs annually over the last decade.
? Create more than half of nonfarm private gross domestic product (GDP).
? Hire 40 percent of high tech workers (such as scientists, engineers, and computer workers).
? Are 52 percent home-based and 2 percent franchises.
? Made up 97.3 percent of all identified exporters and produced 28.9 percent of the known export value in FY 2006.
? Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large
firm patents to be among the one percent most cited.
With small businesses being such an integral part of our economy; it's hard for me the visualize how large infrastructure projects are going to directly stimulate this incredibly important sector of our economy. Sure...maybe some of those dollars will trickle down to this sector...but, meaningful stimulus? I don't see it. And any kind of tax increase is probably the last thing they need right now...regardless of how the 'enlightened ones' want to spin it.