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Create a Fair Small Business Tax

Created by J.S. on December 24, 2012

Under the current tax system small business owners pay income tax on all profits from their small business. Let's say you make a profit of $200,000, you have to pay an income tax on that amount. Now let's say under my Fair Small Business Tax, that $200,000 is divided into two. The amount you reinvest into your business and the amount you keep for yourself. The amount that is reinvested is taxed at 5% and the amount you keep for yourself is taxed at the normal income tax rate. Since small businesses are the main job creators of our economy this would be an incentive to reinvest, thereby creating more jobs. While at the same time being able to tax upper (non-small business incomes) incomes at a higher level. It is a nice compromise for both parties that doesn't harm small businesses.

Budget & Taxes
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