The problem we face in the United States is that many members of Congress have never started their own business or understand how to create jobs.
President Barack Obama himself has never had a job outside politics and many of his friends have experience in academia, not real-life experience
This is part one of my three-part solution to restore America to prosperity. It is about corporate changes.
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After surveying and reading the suggestions of more than 400 business owners, I came up with three changes that actually will stimulate the economy.
The first is to cut the tax rates for all corporations that have profits of less than $1 million by 10 percent. This is simply an act of good faith that tells the small-business owner, who has risked their life’s savings in many cases, that the government appreciates all their hard work and effort.
There were bailouts for many big businessmen and these hardworking people historically create many of the jobs in America. These folks have no lobbyists looking out for them. Many are hard-working folks who have risked their life savings to build something for their families and have been demonized by this administration as needing to share their wealth with government.
The tremendous amount of economic uncertainty has made employers less willing to hire people.
Healthcare reform and the administration telling business owners their personal taxes will be raised has caused many small businesses to pull back or simply not hire anyone else.
By cutting taxes, the small businessman will finally feel that the politicians in Washington are eager to help this country out of its worst economic slump since the Great Depression.
Many will argue this will raise the deficit. The fact is, the multiplier effect of this savings will be felt throughout economy. Small businesses will have more capital and incentive to expand and grow.
America takes in presently more than $2 trillion in federal income taxes, which is larger than the entire GDP of almost every country in the world.
The government spends more than $3.5 trillion and refuses to make the tough changes to cut spending.
When Presidents John F. Kennedy, Ronald Reagan, and George W. Bush cut taxes, the total amount of tax revenues to the Treasury increased for the next three years.
Many people choose to ignore these facts, but ignoring them doesn’t make them any less true.
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About the Author: Bill Spetrino
Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here
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