I have had many comments based on yesterday’s articleObama trying to put small business out of business some of you agreeing with me and some of you disagreeing with me. I welcome both types of comments and all opinions and I respect opinions even if they don’t agree with mine, after all that is what America is about, but to those few minority that posted rude comments with foul language that I won’t repeat in this post, please don’t bother, your comments will never see the light of day, if you cannot be civil and cannot post an articulated intelligent comment than it will not be approved.
That being said I would like to respond to some of you who claimed that most small businesses do not make $250,000 a year or more; the first issue here is what your sources of information are considering a small business. According to the Federal Government as well as the SBA, and the IRS, a small business is any company with up to 500 employees.
According to the U. S. Census 13% of all business in the U.S. have between 5 and 9 employees; I think it is safe to say that these firms make at least $250,000, because even a meager payroll of 5 employees will be half of that. That is over 3.6 million companies, and while that may not seem like a lot compared to the overall 27 million firms in business, it’s still considerable.
According to the Internal Revenue Service the top 1% in America makes an average $380,354 and I know many of you are saying, big deal that is only 1%, but according to the IRS that 1% is paying for 21.5% of all federal and state taxes, and that is a big deal. These are the people that are employing a vast number of people, so a tax increase means they lay people off, they don’t reinvest as much in their business, they don’t hire that extra person like they were going to, it all adds up in the end.
At the end of the day whether you are a business making $100,000 with 1 employee or several million dollars with 500 employees, the more tax breaks you get, the more money you have to reinvest in your company, the more money you have to hire new employees, and that is what is needed to get out of a recession, not taxing the rich, that won’t help, putting people to work, putting money in their pockets, that is what will help. On top of that taking from the rich and giving to the poor doesn’t work in a capitalist society, that’s not how the free market works, never has, never will.
This is not a political blog, it is a business blog, but sometimes these issues cross one another such as this one. Even if we were to agree that companies needed to pay higher taxes (which I don’t) right now the U.S. Government is wasting our money, they have put us into so much debt that our great grandkids will still be paying the bill, and you think we need to give them more money to throw away? To many of us in business, this is just common business sense, you don’t throw more money at a problem, you fix the problem first, and the way to fix the problem is not taking companies hard earned money and redistributing it on things that up to now have not worked.