Last edited by jambalaya; 02-23-12 at 08:43 AM.
20% is NOT the average profit realized by the typical American business, large or small
now let's look at your simplistic arithmetic (using your absurd 20% profitability projection)
you failed to address the REDUCTION of tax expense (seven percent for all businesses and more for manufacturers)A business makes $100,000. It makes the average 20% profit. You take away from their 80% of deductions. Hince, you've raised their taxes and cut into their profit margin.
if the deductions no longer available to the business exceed that seven (or more) percent savings in tax obligation, then the effective tax rate of the large or small business will be higher under Obama's proposal
however, if the deductions no longer available to the business are less than that seven (or more) percent savings in tax obligation, then the effective tax rate of the large or small business will be lower under Obama's proposal
what is not known is what the change in deductions will be. in contrast, we know what the change in tax obligation will be
and this is why i put you on the spot when you insisted Obama's proposal will result in higher taxes for small businesses. the only way you could establish that as fact is to show us that the deductions lost to the small business community would exceed seven (or more for manufacturers) percent. and as we have seen, you are without the facts to back up your bold statement
that's a good thing. after you screwed the pooch so bad on something so simple it would be appalling to see what you would do with a spacial mechanics problemIt ain't rocket science.
So if any small businesses see their tax rates increase it will be a very small group. Most importantly, they are going to be on an even playing field with their large multi-national competitors.
“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.” John Maynard Keynes
Good. Cut business taxes.
In fact, I'd go further -- any company that builds a factory or somehow creates jobs in the United States doesn't pay any taxes on income reinvested in the economy. None, zero.