Quote:
Originally Posted by Azure
The only way the US could cut taxes to help job growth is to lower the overall corporate rate. Small businesses that can't afford the money to exploit loopholes are suffering because of the high rate. Creating a level playing field for everyone would drive job growth.
Tax cuts for the rich are pointless, and should only be considered if you have a very low debt/deficit. Instead, if you WANT to cut taxes, you do it in the form of cuts specifically aimed at the middle/lower classes. The US already has a very low personal tax rate, so cutting taxes for the wealthy is short-sighted unless you actually cut spending too.
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This is a bit more of a simple approach that works in Canada, however, in the US it's a bit more complex. Without going into too much detail small buisness owners have two common ways to have a business the is formed as a corporation. A C-corporation or an S-corporation.
A C-corporation is the same type of corporation that exists in Canada and the corporation itself is taxed. I do agree that you may want to lower the tax rates on these types of corporations.
However, a significant number of small business owners utilize the S-Corporation. This is a corporation that is essentially a flow through and is not itself taxed but all the profits of the corporation is taxed in the individuals hands. Therefore by saying that the rich tax cuts offer no benefits isn't entirely correct. (I'm using the definition of rich that it seems most on this board thinks is rich of $250,000 yearly earnings) Therefore, giving tax breaks to C-corps but not individuals won't necessarily have the desired results. One big factor of this is also that all the big corporations are more likely than not C-Corporations due to the restrictions on forming an S-corporation.