Small businesses are the engine of the American economy. There are 29 million of them and they provide employment for roughly half the U.S. workforce.
Through innovative products, dedicated employees, and strong community roots, these entrepreneurs are responible for two thirds of all job Creation. That’s a lot of jobs.
But high taxes and intrusive government regulation can eat away at budgets and hurt their ability to raise wages and hire new people. In fact, small business owners say that high fedreal tax rates are their number one concern.
Most small businesses – 95 percent of them, in fact – are taxed through the owner, which mean these businesses are subject to federal tax rates that can reach 40 percent. Small businesses structured like this are commonly referred to as pass throughs.
Imagine 40 cents of every new dollar earned going to the government. In any other circumstance, theft on this level would not be tolerated. Why is it for small businesses?
Significant tax cuts for these small enterprises would turbo charge the U.S. economy. According to a recent poll of small business owners, a majority of respondents would use the financial savings from tax cuts to invest back into their businesses. This means hiring more people, raising wages, and expanding operations.
By energizing America’s entrepreneurial through small business tax cuts, America’s middle class can experience greater job security, higher wages, and a more vibrant main street.