American small businesses are under attack by over-taxation, over-regulation, and lack of access to credit. According to a recent Job Creators Network nationwide poll of small business owners, the vast majority of respondents said the current tax and regulatory climates are preventing them from expanding and creating jobs
To address these issues facing small businesses and finally bring them and the economy back, policymakers must reform the small business tax burden to allow job creators to spend their earnings hiring, expanding their businesses, and raising wages.
According to Alfredo Ortiz, the president and CEO of the Job Creators Network, the biggest beneficiaries of proposed federal tax cuts are the middle-class and small businesses.
The proposed tax plan calls for a special 9 percent rate on small businesses’ first $75,000 of earnings, which is a 40 percent marginal tax cut. This special rate only applies to businesses with $150,000 or less in total annual earnings to ensure the rich don’t benefit.
The plan also has several additional proposals to help small businesses, which account for half of all jobs and two-thirds of new jobs in America. It would create a new top marginal small business tax rate of 25 percent, spurring hiring, expansion and wage growth. It would allow for immediate expensing and full deduction of interest costs, making expansion and capital investment easier.
These provisions would strengthen the country’s middle-class and small-business backbone, which have been weakened by years of over-taxation.
Facts on Small Business:
– There are 29 million small business owners in America and they employ 56 million people—meaning 85 million Americans depend on small business.
– Over 8 million small businesses are minority owned.
– About 10 million small businesses are owned by women.
– About 1/5 small businesses are family owned and operated.
– Small business owners are responsible for 2/3rds of new jobs.
– About 95% of small businesses in America are pass throughs—meaning their owners pay personal income taxes on the profits of their business.
– According to a recent JCN national poll of small business owners, the number one policy concern is high taxes.
– According to that same poll most small business owners would reinvest any tax cut savings back into their businesses in the form of wage hikes, new hiring, and expansion, showing that tax cuts would help boost the economy.
About Job Creators Network
Job Creators Network is a nonpartisan organization founded by entrepreneurs like The Home Depot co-founder Bernie Marcus who believe that many government policies are getting in the way of the economic freedom that helped make this country prosperous. Job Creators Network believes the best defense against bad government policy is a well-educated public and accomplishes this through employee education.
SOURCE: Orange County Register
>>Learn More: How Entrepreneurs and Low Taxes Create Economic Growth