Simplify Small Business Taxes Before You Subsidize Small Business Loans

Guinevere Nell / October 23, 2009

Obama promised that the stimulus would “create or save” 3.5 million jobs, and significantly tempter the rising unemployment rate. Now that it is clear that his plan has failed to save or create jobs, and unemployment is still rising, Democrats are reaching out to small business.

“Small business is the engine of job creation and capital creation in our country,” Nancy Pelosi said yesterday. Their plan? Use more taxpayer money to increase Federal loans to small businesses—those that qualify according to government guidelines, of course.

But wait—right now, the majority of small business tax filers face marginal rates of 30-40%, in addition to many other regulations and protectionism. (more…)