The spurious argument that job creation hinges on tax rates
Cost Rises
Small businesses will have have nothing to cheer about, regardless of the outcome of the current debt ceiling negotiations. While GOP and the big business lobbies wail about retaining current tax loopholes and tax breaks for large corporates, the actual cost of doing business has skyrocketed over the past 20 years. What good is a corporate tax break for a small business owner faced with almost 300% increases in healthcare costs, and near 240% increases in gasoline costs?
Taxation takes place after income is earned; reducing tax does not generate revenue, once you realize that tax rates are not a primary revenue driver. Tax rates inform certain decisions such as location, but a reduction in taxes cannot address the cost structure of doing business. And you cannot create a job because you pay less corporate taxes; you create a job to support additional corporate revenue generation.
Small businesses are the engine of American job creation. Without the ability to generate sustainable and growing profit margins, there will be no jobs created by small business. The tax system is in need of overhaul. But healthcare and transportation costs are broken and in dire need of immediate attention. But I suppose that fact does not sit so well with Exxon
and Aegon and Merck.
