• It has come to our attention that some users may have been "banned" when they tried to change their passwords after the site was hacked due to a glitch in the old vBulletin software. This would have occurred around the end of February and does not apply after the site was converted to Xenforo. If you believe you were affected by this, please contact a staff member or use the Contact us link at the bottom of any forum page.

Is 55% marginal tax rate on small business dividends killing business expansion and job creation?


patslatt

Well-known member
Joined
Apr 11, 2007
Messages
13,693
Small businesses thinking about expanding are faced with several major risks:

-weak markets in the depression which call for great caution
-lack of bank credit which is critical for businesses that need revolving bank loans to finance inventories and trade debtors
-high loan losses on trade debtors
-high fixed charges for commercial rates on new premises that may not generate a profit for a long time

If the business makes a profit after taking all these risks,the business owner must give 55% of profits paid out in dividends to the tax man. Many business people would think,why bother?

That attitude will kill a lot of business expansion and job creation.

If the government raises more tax,it should impose a health tax on the unhealthy products that take up half the space of supermarket aisles-sugary products such as fizzy drinks and confectionary and products high in salt such as crisps and prepared foods.
 
Top