New Report Makes a Business Case for Letting High-End Tax Cuts Expire
A report released Tuesday finds that it makes good business sense to let the high-end Bush tax cuts expire on December 31. The report by Business for Shared Prosperity, says families should keep tax cuts on their income below $250,000, but well-off taxpayers should not get extra tax cuts that won’t create jobs and will cost $700 billion over the next decade.
Rick Poore, Owner of Design Wear Inc. in Lincoln, Nebraska, made the case for stimulating demand rather than stimulating more production: “As a fellow businessman once told me, ‘Give me more customers and I’ll be forced to buy equipment and hire people to meet demand. Give me a tax break without more customers and I’ll just go to Aruba.’ ”
- Small business hiring is driven by customer demand, not tax rates.
- Job growth was much better before the tax cuts. – The Bush administration created just 1.1 million jobs net, while the Clinton administration created 22.7 million.
- High-income households will get substantially more than middle-income households from the “middle-class tax cuts.”
- Few actual small business owners are in top tax brackets – Less than 3% of tax filers with any business income make over $200,000 (individuals) or $250,000 (couples) a year, and that’s counting hedge fund investors, big business lobbyists, and other non-small business owners.
- Continuing the longer eligibility period for unemployment insurance benefits is better for the economy that lowering the top tax rates.
- If Wall Street tax cuts trickled down, Main Street wouldn’t be in an economic drought.