Here are the points, you make the call, and I did not get all this on my own either it is available out on the net in multiple places.
We all know that 60% to 70% of all job creation comes from small business.
Small businesses are required to pay the tax so the profit on that service or product you just bought is probably 35% to 50% Everyone says corporate tax in the US is 35%…
The small business also has to pay for benefits if they have employees and they will. Even one person business has one employee so they would have to pay about 12% in tax ( Social Security, Medicare, etc) for those benefits… minimum if not more
When the small business owner want to retire (if he can ever get that far) and get out there he will pay another 20% tax of the value of the business he sells which was built on taxed money already.
Next when you die and want to pass along what ever was left of that business to your heirs there will be another tax of about 50% of the remaining worth.
All that can add up to 75% of the over time income you may have made in a small business going to the government in taxes of one form or another.
So why would anyone want to start a small business with that burden facing them before they can implement the plan? Don’t misunderstand, there are a lot of those that will do it anyway, and there are perks to having your own business. I think one of the greatest perks might be the freedom to make you own decisions about how, when and where. Entrepreneurship will pay out over time but just think how many more jobs there could be if it wasn’t such a huge burden and they could make 30% instead of the 25%?
Now if you decide to be a politician you can make 75% and get someone else to pay for all your expenses and benefits. – WD0AJG