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February 4, 2010

Low Taxes Destroy Our Small Businesses

-- by Dave Johnson

This post originally appeared at Speak Out California.

Remember last year when the Republicans laid out the price of a budget deal and it was a giant tax cut for the biggest corporations? So in the middle of a revenue crisis they forced ... less revenue. Well, imagine that you are a struggling small or medium business in California, and the Republicans gave your nemesis even more power to crush you.

Corporate taxes are on profits. So a tax cut means that the more profitable companies pay back less to the government for their use of the roads, schools, police and fire protection.  The very infrastructure that supports new businesses is weakened.

Meanwhile, smaller businesses that are struggling don't pay corporate taxes, so tax cuts do nothing for them. And small businesses that make modest profits only pay modest taxes, and don't care.

On the other hand, the giant monopolistic corporations that are chewing up small businesses, destroying local and regional retailers, take those tax cuts and use them to turn themselves into even better small-business-destroying machines.

For example, the giant Wal-Marts are destroying local and regional retailers.  But it is the Wal-Marts, not the local and regional retailers that are the beneficiaries of tax cuts.  This is why the "usual suspects" who get their campaign funds from the giant companies, and work with lobbyists for the largest corporations are the same ones who always advocate corporate tax cuts.

Businesses Need Customers Not Tax Cuts.

Click through to Speak Out California.

Posted by Dave Johnson at February 4, 2010 11:15 AM


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