Comments on: Reality Check: Small Business, Taxes, and the President’s Record

By: LEL

LEL — Fri, 19 Oct 2012 07:27:28 +0000

So, the Romney’s charge is baseless that Obama is a small-business-job-killer.

What about the flip side, Romney’s assertion that tax cuts lead perforce to small business job creation. Take this quote from the debate.

ROMNEY: …And for me, this is about jobs. I want to get America’s economy going again. Fifty-four percent of America’s workers work in businesses that are taxed as individuals. So when you bring those rates down, those small businesses are able to keep more money and hire more people.

Please tell me, just how is this supposed to work, except maybe in an alternative reality where business profit maximization and personal utility maximization have been repealed?

By: Leota

Leota — Wed, 17 Oct 2012 12:35:53 +0000

Thank you for saying it. “Third, small businesses (and large ones too) can fully deduct the compensation they pay their workers, so even the higher tax rates on the wealthiest few percent of businesses simply means they will deduct a slightly larger chunk of their wage bill.”

I have always thought that the assertion that higher taxes would reduce jobs was entirely backward. As compensation to employees is fully deductible, payments to employees lowers total taxes paid by the employer.

By: save_the_rustbelt

save_the_rustbelt — Wed, 17 Oct 2012 07:11:15 +0000

– Eliminating capital gains taxes on investments in small businesses: the President temporarily eliminated capital gains taxes on investments in key small businesses – and has proposed to make this provision permanent, to help entrepreneurs access capital.

Have you ever read the rules for QSB and Sec. 1244 (a long time rule)?