Tax on Small Business

There are proposals to further lower small business federal taxes. We need to do this to give them a chance to grow. But the tax proposed is 25% and it should be 20% or lower. Most large corporations today started as small businesses and they grew, because they offered game-changing innovations.

 

Microsoft was founded by Paul Allen and Bill Gates on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Microsoft Windows.

https://www.google.com/search?q=microsoft+history&rlz=1C1CHWA_enUS664US664&oq=microsoft+history&aqs=chrome..69i57j0l5.4192j0j7&sourceid=chrome&ie=UTF-8

 

This technology was a game changer for US productivity. The PC replaced the typewriter and allowed us to go paperless. It ushered in email and internet access. At the same time, other technology companies were providing devices to allow us to streamline our design and manufacturing processes and retail transactions.

 

These companies are only decades old and now need to be challenged by start-ups to keep them focused and successful in solving new problems like internet security breaches and attacks on critical electronically controlled systems like the power grid and financial systems.

 

Schedule C filers should be able to continue to use this filing option with no changes. The best way to create jobs is for individuals to go to work for themselves as “Sole Proprietors”. They should continue to be able to report their business income minus expenses and put their net income

on the 1040 form. 

 

LLCs should be continued as is. S Corps should not be taxed at a higher rate than C Corps. The Tax Bill seeks to move US C Corps from 35%, the highest on the planet to 20% and this should be done to help the US keep these large corporations from moving overseas because the US tax rate is not competitive. Small business tax must be lowered to 20% to keep it on a level playing field. 

 

Some of these small businesses will become large corporations and need to remain in the US. Lowering the small business tax to 25% isn’t good enough. Congress is right to eliminate the tax loopholes and they need to get all businesses on an equal footing.

 

Norb Leahy, Dunwoody GA Tea Party Leader