Small Business Tax Cuts Will Devastate Economy Even Further

By Richard West on July 17, 2010, 10:27 am

Big and small businesses have not praised the Obama administration for its business-friendly policies. While the stimulus bill was designed to create new jobs, many of these jobs have not materialized or were temporary government jobs created by the census. History has shown that small business tax cuts during a recession do not devastate the economy.

Recession Ending Strategies That Worked

The Obama administration and the Carter administration have many parallels, including the long recession and the unemployment rate. President Carter, unlike the current occupant of the White House did not take steps that would worsen the state of the economy. When Reagan took office and inherited a deep recession, one of the first things he did was to cut the tax rate. The current icon of the conservative movement followed the lead of liberal icon John F. Kennedy and cut taxes during a recession. Both attempts to improve the economy works.

 

Cutting Taxes for Small Businesses Is Not Enough

Cutting taxes for small businesses may cause one sector of the economy to start hiring again, but for full economic recovery under normal adverse economic conditions, taxes must be cut across the board. Big manufacturers and service companies create jobs also. Inability to access credit marks the prominent difference between the current financial crisis the crises that marked the early 1960s and 1980s. Reduction in the tax rates that businesses pay will help the economy move, but it doe not address the core issue. Larger banks must regain the confidence they possessed before the housing markets collapsed. Friendly banking policies, dropping the health care, and regulating the problem areas can help the economy recover. Punishing business by adding new taxes helps no one. Suggesting that small business tax cuts will devastate the economy even further shows a lack of understanding of basic economic principles.

Related posts:

1. Bush Tax Cuts: How They Will Affect The Wealthy & Middle Class
2. Obama Asked to Extend Multi-National Business Tax Cuts
3. Expiring Bush Tax Cuts Will Kill Any Economic Recovery In 2011
4. Obama Business Supporters Disappointed over Tax Cut Delay
5. Economy And Unemployment: Trumka Shows Blaming Bush Wont Fix This

One Response to “Small Business Tax Cuts Will Devastate Economy Even Further”

1. Small Business Tax Cuts Will Devastate Economy Even Further | Streamlined Life says:

   July 17, 2010 at 1:41 pm

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