Quote:
Originally Posted by BoKnows
I dont think being productive means you necessarily make a lot of money. Now I can agree that many of the fat cats in Corp america may not be the most productive as with many of the larger US companies the lower level employees do shoulder the load...to that degree you have to start somewhere. I can say that all of the successful individuals I know most making more than $250/yr consitantly, are small business owners working their asses off 50-60 hrs/week supporting employees with excellent benefits and it does not get any easier for them to stay on top year after year, I actually see them working harder year after year side by side with employees to keep their company engins running so they can provide jobs for hard working middle class americans. Many of these individuals are foregoing retirement and salary's during the down times in order to provide said jobs.
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But dont most of those business owners take most of their income through S-Corps or LLC/LLP structures and not W2 income? Most small business owners I know actually keep their expenses really low so that they can minimize their W2 income, and operate in the more tax efficient business tax system, which allows for a much higher range of deductions.
And god bless those people who are keeping things going. MY guess is that a lot of people in that situation keep some degree of retained earnings such that they can provide some small measure of job security for the people that work for them. Like I said, I think elimination of corporate taxes, especially on small businesses, would help those folks out a great deal. On that note, from the website:
Support Small Business
- Provide Tax Relief for Small Businesses and Start Up Companies: Barack Obama will eliminate all capital gains taxes on start-up and small businesses to encourage innovation and job creation. Obama will also support small business owners by providing a $500 “Making Work Pay” tax credit to almost every worker in America. Self-employed small business owners pay both the employee and the employer side of the payroll tax, and this measure will reduce the burdens of this double taxation.
- Create a National Network of Public-Private Business Incubators: Barack Obama will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. Obama will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.
Now, this isn't perfect, and I would hope that we add corp income taxes to the elimination of capital gains for small businesses, but the proposal actually seems like, at least, a good start.