The word “taxes” could easily be considered a commonly used word in todays age and every age since the inception of big government. However, very rarely do you hear the word used in a delightful manner. As we all know taxes in general are a necessity for a country’s economical success. So at what point did the U.S. Government go from using taxes for its peoples’ well being to making its people victims of highway robbery?
In the latest video posted by PragerU, they bring to light an astonishing truth. The Unitied States struts around sporting a fashionable 35% corporate tax rate. Why is that a problem? Because statistically it is the highest in the developed world.
Oh and it gets worse, small businesses such as S-corps, Partnerships and Sole Proprietorships pay income taxes in place of the standard corporate taxes paid by larger companies. That means that the owners of these small businesses end up paying taxes upwards of 40% and thats only on the federal level. They still have their state and local taxes to pay as well. I’ll let you do the math, I already did and it’s high.
“The profits earned by these small businesses are ‘passed through’ to the owner and counted as individual income on their personal tax return,” PragerU reports, “That’s why you might hear small businesses referred to as ‘Pass-throughs.'”
The video later states, “High taxes hurt small businesses’ ability to grow and expand, causing them to raise prices or even trim jobs to stay within their budget constraints,”
These small businesses are a cornerstone of our economy and instead of being rewarded for their contribution, they are being railroaded by big business and big government. That’s in the ballpark of 29 million small businesses that are being thrown to the curb. Not to mention the 56 million workers that make up those small businesses and rely on their success to feed their families. To ensure the further success and growth of the U.S. Economy, small businesses must be given the tools to succeed. Otherwise, we face a future where our children have no choice but to work under strong armed big businesses without a hope of ever achieving the American dream on their own.
“Two-thirds of all new jobs come from small businesses and lowering taxes can have a big effect on the entire economy for all Americans,” As the video wraps up PragerU added. “So the next time you hear someone supporting an increase in tax rates on businesses, remember that very important group of small business owners and the 85 million people dependent on their success.”