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Recent Tax Hikes, Not A Problem For Many Small Businesses
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Recent Tax Hikes, Not A Problem For Many Small Businesses

Did You know small businesses will not hire due to recent tax hikes on people who make $450,000 or more? Did you know jobs will be lost if we raise taxes on business people who make more than $450,0000? Not necessarily true, if you know what you are doing. By now, many of us know that the argument of "raising taxes," was just a lot of bluster by greedy people, who just do not like paying taxes period. No one likes paying taxes, but most of us with common sense understand that taxes are a necessary evil.

I get some people may have no problem with paying taxes, but they do not like the way our government spends our taxes. Its never going to be perfect, but we could stop electing people that just can't grasp what makes the economy work. We could stop electing people who are only in it to help themselves. Most people with common sense know you can't have a balanced economy by having a lopsided economy. One where the top part of the country reaps 93 percent of the profits. That fact right there, literally makes my stomach turn to mush. If it does not turn your stomach, then you are probably part of the problem, just saying.

I will be the first to admit I am no expert on the economy. I do have a good grasp on things that make sense though. Some of this stuff is not to hard to figure out. Most of this is not rocket science. We just tend to make it that way. Now that I have that off my chest, lets go over why many small companies were not worried about the recent tax hikes.

Their main concept is if your business is doing well, a few percentage points more in taxes is not going to hurt you. If your business is struggling then everything hurts you and taxes are the least of your problems. Chances are, you need to come up with a new business model. This is why many businesses make it a point to have an accountant, whether they are small or not. The problem starts when businesses owners are more focused on how much they are paying in taxes rather than the profits they are making. It's a lot easier to find more ways to make money than fight the whole system.

Besides, many business owners believe a balanced tax system actually encourage's growth. One that is not to high and one that is not to low. They believe when the tax system is to low owners expect to always have money on hand, and they stop investing in their company and just pocket their profits. Which also can lead to much greed and corruption. Does any of that bring back memories? When the tax system forces their hand a bit, that is when they start to invest in the company more, with new equipment, higher wages, bonuses, hiring new people.

The reason being is, not to have to much profit on hand at the end of the year in which the government will take a bigger slice. That's why many companies do their budgets in quarters and pay their taxes in quarters. Instead of waiting to the end of the year. You wait to the end of the year, then the recent tax hikes are going to cost you more. Plus many of these small companies can get tax breaks off of hiring new people or doing research into something that will benefit the whole economy.

In my mind, that is where tax loop holes should be. They should be held to an absolute minimum. Reward companies for being responsible by keeping our jobs in this country and paying people fair wages according to the amount of profits the company is making. Not this race to the bottom of who can get people to do the most work for the least amount of pay. Right now, many loop holes encourage greediness and reward bad behavior.

The bottom line is, if small businesses are responsible and are doing what they are supposed to, then the recent tax hikes are no big deal.That's not to say the small companies that are struggling and can't really even afford to pay even a few percentage points are being irresponsible. It's just saying they might be in over their head and do not really know how to run a business. Maybe they know how to run a business, but just can't figure out a way to make their product good enough to succeed in the market.

There is help for these types of companies. I am not talking about venture capital companies either, that loan your company a bunch of money. They proceed to come up with some half-assed plan to get your company back on track, and if it does not work, they break up your company. Take 90 percent of the companies worth, leaving all its workers to fend for themselves. Not saying all venture capital companies operate that way, just using it as an example.

What I mean, is like this lady I was talking to a while back. Who is self employed in helping small businesses who are struggling financially. She was basically telling me she goes into their company studies everything that they do. She tells them to keep doing what they are doing right and then corrects them on what they are doing wrong. She gives them a blue print of things they need to change. She lets them know, if they do not listen to her, that most likely their company will fail. If the company does exactly what she tells them and the company still goes under, then she does not get a dime. So you can imagine her success rate is very high, or else she would not be in business no more.

There is no excuse why this country lets so many people and businesses fail, when there is no reason for it. To make it worse, we try to profit off these people and companies. Then use false equivalencies about taxes of why so many businesses go under.

I get we want people to be in charge of their own lives. I get we want people to be self dependent. I get people have their pride and do not like to ask for help. I myself, struggle with the pride issue. At some point we need to start teaching people again, and quit taking advantage of what they do not know. If they fail, we all fail and everyone pays the price. Sometimes that price may not be that big of a loss, but should be known that it leads to a very bad outcome if this mentality persists.

Street Talk

I could not agree more with your last paragraph. Well said!

  about 9 years ago
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