Show Us the Money!

There seems to be some confusion in the Trump camp about whether they should put lower taxes or affordable health care at the top of their agenda.

For us, as representatives of the small business community (and we’re on the small end of the smalls, with average client size at 15 employees), it’s about corporate and personal tax cuts. And of those two, it’s about corporate tax cuts, because we can use the money better than the government. Besides, most of us derive most of our income from our businesses. It’s nice to have 100% expensing on equipment, but you’ve got to have the means to buy the equipment in the first place.

So, we’ll take the tax cut. The math is pretty simple: if the tax on $100,000 of adjusted gross income drops 15 points, that’s another $15,000 in an owner’s discretionary pocket.

He or she might take it all, but if they’re like our clients, they might use it on a down payment on a marketing and sales person, or more inventory, or the down payment on a new piece of equipment, all of which would have returns down the line.

Many of our clients don’t yet offer health care plans through their businesses; Obamacare has made them too expensive. And, when offered the choice between healthcare coverage and more take home pay, take home pay wins. Those who need it have insured spouses.

So, there you have it, Washington Wizards.

This entry was posted in economic policy, Entrepreneurship, Hiring, taxes and tagged , , , , , , , . Bookmark the permalink.

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