Over the past decade or so, publicly held Fortune 500 companies have contributed to a decrease of over two million jobs. At the same time, privately held and family owned small businesses have contributed to an increase of eighteen million jobs, as well as over half of our GNP. According to the Census Bureau, 98.3% of all businesses are less that one hundred people.
What is that saying? Small business is actually running more of this country than big business. Family owned business is putting people to work while big business is laying off. So the truth is, small business is the reason this country is as strong as it is. That doesn’t sound right, because most of what we hear in the media is about all the control, power, and greed big business has. What you don’t hear, is how much of the opportunity available in America is made possible by mom and pop shops all around this country.
We are hearing a lot of rhetoric in the media of how badly big business can ruin this country with tax loop holes. In fact, my post yesterday seemed to hit a nerve on both sides of the discussion….or argument, however you look at it. Because there is so much discussion of the top 1% and how much they need to pay more in taxes. What’s getting missed is that the top 1% isn’t made up of billionaires. In fact, it’s not just made up of millionaires either. It’s folks that are making more than $380,000 income a year.
Who’s does that consist of? A lot of small businesses that are employing most of America right now. While the discussion seems to be about how the high incomes of big corporate CEO’s need to change, we have to realize that they make up a small percentage of the 1%. If we tax the daylights out of the top 1%, we’re not just making those CEO’s pay for it all, and it’s not going to get rid of your personal debt, instead, it’s going to be putting more tax on the companies that are adding jobs right now.
In turn, those companies will begin to slow down in the hiring process. Why? Because when you have to spend more money, your bottom line gets smaller. When that happens, you do what’s called tighten up. In effect, you stop hiring people, so you spend less money. And the additional taxes get passed on to…wait for it…the consumer! Yep. Even though I heard an “expert” on TV the other night explain how increased taxes to business get passed on to either labor, or the owner. WHAT?!?! This person obviously has never owned a business. And just how do you pass expenses on to labor anyhow?
And I can promise you that no owner in his right mind is going to look at increased taxes and say that they are going to suck it up and not pass them on to the consumer. That’s exactly where it’s going. It only makes sense. So, I wanted to take a different turn with the topic of the 1% today and see just what you thought when it comes to small business. So the question for today is, do you think that the bad decisions of a select few big business CEO’s should be passed on to most of the small businesses in our country?
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