Manta Small Business Owner Poll: Trump +18

[Beefalow and the Consumer]

Country   2015 Corporate tax rate
United States   35%
France   34.43%
Belgium   33%
Australia   30%
Mexico   30.0%
New Zealand   28%
Portugal   28%
Spain   28%
Italy   27.5%
Norway   27%
Israel   26.5%
Greece   26%
Austria   25%
Iran   25%
Netherlands   25%
Denmark   23.5%
Chile   22.5%
Luxembourg   22.47%
Korea   22%
Slovak Republic   22%
Sweden   22%
Estonia   20%
Finland   20%
Iceland   20%
Turkey   20%
United Kingdom   20%
Czech Republic   19%
Hungary   19%
Poland   19%
Slovenia   17%
Germany   15.83%
Canada   15%
Ireland   12.5%
Switzerland   8.5%

Source: https://en.wikipedia.org/wiki/Corporate_tax

[Beefalow and the Consumer]

Country   2015 Corporate tax rate
United States   35%
France   34.43%
Belgium   33%
Australia   30%
Mexico   30.0%
Source: https://en.wikipedia.org/wiki/Corporate_tax

Now post the effective corporate income tax rate and the small business tax rates.

I was unable to find "small business tax rates." Partially because what's a "small business" anyway?  We have horrible tax structure issues in this country.  Europe has income tax on the wealthy and value added tax, not income tax squarely on the middle class, corporate tax, and sales tax.  In Europe the effective tax burden on everyone is lower, and they can afford more services.  But we're Murica, so we do it stupid.

Small business owners in the country are right to be angry.  They aren't choosing the proper solution, but that's mostly because the proper solution hasn't be presented.

[Beefalow and the Consumer]

That's the thing - less and less companies are signing up to be C corps that are responsible for paying the corporate tax.

What should happen is small businesses should be able to incorporate as C corps, corporate income gets taxed at a low rate, and the business owners'/executives' income gets taxed at a high rate.  This encourages more money to go back into the business - higher wages for employees, investment in capital, etc.  Executives only make a few times more than cashiers, not 2000x more, the local economy grows, people have money to buy the stuff the small business sells, everyone is happy.

There is no reason on God's green earth that S corps should be a thing.

[Beefalow and the Consumer]

Yes the US corporate tax rate is really high but almost no company pays anything close to that rate. How about lowering it to something reasonable (something like 20-25%) and then close all loopholes and deductions.

I entirely agree.  This, coupled with a drastic increase in the marginal tax rate on high incomes.  We should live in a world in which cashiers can own a home and executives make $500k to $1m/year.  Not a world in which cashiers make poverty wages and executives make $50m/year.

Where the high business taxes really hit home is where it becomes more advantageous for small business owners, who are not wealthy people, to incorporate as S corps.  Which taxes all their business income as personal income.  That ends up being the worst of all worlds.  Tax policy is screwing them, and I totally understand where the GOP is more attractive.

My parents operate an S corp in Wisconsin.  Because they place contractors and have delayed reimbursements from clients, they have to meet massive payrolls at times.  It's hairy and nasty, and they aren't rich.  The struggle, as they say, is real.  Of course, because my parents are decent human beings, they oppose Trump with every fiber of their being .