Tax cuts: Small biz fact check
NEW YORK (CNNMoney.com) — Republicans say raising taxes on the wealthy would cause small businesses to pull back on hiring. Many leading Democrats say that’s nonsense. Who’s right?
The answer isn’t black and white, despite politicians’ confident assertions to the contrary. It’s more like multiple shades of gray.
Does anyone know how many jobs are created by small businesses at the top brackets?
Nope. And here are three reasons why:
First, there’s no uniform definition for what constitutes a small business. Someone may have income from a rental property that generates business income. Is that a job-creating small business?
Second, there’s no indication of what kinds of businesses are represented by the owners filing at the top 2 rates. So it’s hard to assess whether their job creation patterns might be similar to other small businesses or how many businesses one taxpayer may represent.
Lastly, there’s no neat box that business owners check on their returns that says, “I employ 40 workers and hired 3 new employees this year.”