Quote:
Originally Posted by Flames Fan, Ph.D.
So you're a small business owner and there is very low demand due to the economy. The government gives you a tax cut. You're going to hire employees with your extra money?  |
Obviously if there is no demand for your product you won't hire anyone.
But I'm talking long-term here. Small businesses in the US pay a higher overall corporate tax rate than even businesses in Canada paid back when our rate was at its highest point.
Apparently closing the loopholes and lowering the overall rate will generate additional revenue. So if the government is letting smaller businesses keep more of their money, obviously they will spend it to grow their business. Assuming that there is demand. And at some point one would think the economy should rebound.