Hey Mr. CNN, if you’re reading this, let me make you happy by chanting your slogan...
“Bring back American jobs now!” :)
Welcome to Socialism. Fewer new businesses is a feature, not a bug.
The 0BAMA DEPRESSION is in full swing and the kenyan, commie usurper in the white hut couldn't be happier.
How long till we roll out the guillotines?
But...but...but, Barry’s “media” is telling us that Barry’s “conomy” be “boomin’!”
In a labor market like this one (too few jobs, too many job seekers) I’d think more people would be starting their own businesses. That’s what I did and it was the best move I ever made.
Raising marginal tax rates had consequences. What the progressives, media, low information voters, academics, and politicians don’t understand is that growing small businesses are typically capital starved. Income taxes for the business are declared as the owner’s personal income. Entrepreneurs, particularly during the early stages of the company’s life, typically live a frugal lifestyle in order to poor every available dollar back into the business. When Obama raises marginal tax rates to soak that $250,000 income of an entrepreneur he is really taking cash desperately needed to fund the growth of the business.
The pictures progressives have painted of the $250,000 entrepreneur is someone living like the Obama’s, jetting around the world, going to parties and concerts, riding in limousines, and eating expensive food. The reality is, most of these entrepreneurs drive a beat up old pickup truck with the name of the business on the side, live in a very modest home in a middle class neighborhood, and never take a vacation. They probably live on $50,000 or less of the $250,000 and if there is anything left over after taxes it goes to buy new equipment for the business.
During the current depression, bank and venture capital funding of small businesses has almost completely dried up. For a small business owner to grow the business, they have to generate the cash for expansion internally which is difficult in good times and impossible in tough times, particularly when the government’s take is increasing.
Unfortunately the multinational corporations and too big to fail banks that fund both political parties, and run the chamber of commerce, care nothing about the plight of small business. As a result the politicians are totally ignoring the issue.
If you want less of something, tax it
If youy want more, subsidize it.
We tax the heck out of businesses, and pay people to sit on their asses.
Who could have guessed?
One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary. Ayn Ran
A lot of it is the greatly increased “hassle factor” of all the registering and permitting and special licensing and special insurances and guilds with silly rules aimed at preventing new entries and competition. It isn’t always a matter of finance. Sometimes the operational barriers to getting started cost more than can be undertaken in a small start-up.
I think this preemptive barrier effect is actually a larger matter than finance.
bkmk