Tax those business owners, tax em hard.

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Small business makes up nearly 2/3 of all jobs created in the US. And anyone who runs a small business knows that the majority of small businesses are of the S or LCC variety. In these situations, the vast amount of corporate revenue (or working capital) is assessed at the end of the year by the FED as "INCOME" to the business owner. Even though this is not income, that is how the government views it. That said look at this chart:
You'll notice something, the two largest contributors are income tax and payroll tax followed by corporate tax. To a business owner this is THREE taxes in one. A business owner is taxed for owning a business (corporate), having employees (payroll) and having an income (income). Now these are two taxes the average non-owner doesn't have. So a business owner is responsible for roughly 2.2 Trillion government revenue dollars out of the less than 2.5 trillion made. Is this really how you should handle small business? Now this listed, who in their right mind would want to run a business? You pay the vast majority of the taxes and see none of the "tax breaks" because in government eyes, you make too much. Leading to failure, one foot step at a time.

Comments

  1. EricFebruary 23, 2009 at 1:14 PM

    Except small business owners aren't really getting taxed three times. Any money spent on payroll or payroll taxes is an expense, and therefore not taxed. Once the owner pays himself (a corporate expense), he's taxed on it as personal income tax.

    If anything, I'd like to see the corporate income taxes become a larger part of the pie, making the payroll & individual income taxes smaller. That would really help small businesses, because none of the sole proprietorships pay corporate income tax.

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