By Jessica Chau
We bring you a couple of perspectives today including one from a small business owner in Oregon and one from a GOP insider. Lastly, we have a short comparison of the Obama and Romney corporate tax plans.
Salem [OR] Statesman Journal, Jose Gonzalez, Mark Kellenbeck, Victor Madge, Deborah and John Field, Brian Setzler, 9/1/2012
The debate over the Bush tax cuts has been clouded by claims that ending special breaks for the top 2 percent of income earners would impact many small businesses. As small business owners, we know these claims don’t square with the facts.
In reality, only a tiny fraction – roughly 3 percent – of all American taxpayers who report any form of business income on their personal tax returns would be impacted by a change in tax rates for income over $250,000.
Even this small fraction includes hedge fund managers, high-powered corporate lawyers, and K Street lobbyists, so the number of real small businesses affected is even fewer.
When the Congressional Budget Office examined close to a dozen options to jumpstart economic activity and job creation in early 2010, it found that extending special tax breaks for the richest Americans was the least effective of all 11 options for creating jobs and boosting the economy.
. . . claims about how ending these special tax cuts will impact job creation ignore the most basic fact about what drives small business hiring. Customers drive small business hiring, not tax cuts. We hire when we see opportunities, when demand exceeds the capacity of our current workforce, not because of a tax cut on our take-home income.
Crossroad News [Decatur, Ga], Jerry Wyatt, 9/6/2012
In the interest of open disclosure, I must acknowledge I am a conservative and I was an active Republican, a member of the Georgia Republican State Executive Committee serving as one of the vice chairmen and a candidate for public office on the Republican primary ballot.
What is the GOP presenting to the American public as their plan for America?
Its basic theme is tax cuts for the wealthy and corporations, cuts in social programs, cuts in education, and talks of eliminating the deduction of interest paid by homeowners.
The GOP speakers failed to acknowledge the reason why we lost over a million jobs per month during the eight years of the Bush presidency was because corporate executives made the decision to take jobs from manufacturing to call centers to places outside of the USA. This decision by many corporate executives increased the profit of their companies but also increased the unemployment of Americans.
CNN Money, Jeanne Sahadi, 9/7/2012
NEW YORK (CNNMoney) — Policymakers last overhauled the corporate tax system 26 years ago. The economy, international trade and technology have changed drastically since then.
The result is an outdated corporate tax code, which tax experts and business leaders say hinders rather than spurs U.S. competitiveness.
President Obama and Mitt Romney have promised to do something about that and have made string of corporate tax reform proposals, but they differ on how to address the most problematic parts of the code.