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Why Tax Rates And Business Entities Should Become Law

959 Words4 Pages

Daryoush Jalili Ghiasvandi Ms.Hahne

Civics 8 AAP

12/16/2022

Why Tax Rates on Small Corporations and Business Entities Should Become Law

The economy is important to society, but if taxes plague the businesses that make up the backbone of the economy, the people working at those businesses, the owner of the business, and the economy will suffer from instability. Taxes in the United States today are high for businesses. This is most likely to keep government funding stable, however, it also causes a lot of problems for the people working at or owning a small business. In order to clear up the term “small business,” according to …show more content…

According to the National US Treasury, “55% of total US government revenue comes from individual income” (US Treasury). A very large portion of the workforce in the United States comes from small businesses, at about 46.4%, according to Forbes, a company specialized in businesses. This means it is very likely that a large portion of individual income comes from a small business’s paycheck to their workers, and also from the small business’s profit itself (if it is owned by one person). Since most of the government’s money comes from individual income, half of which is being given by small businesses, it may be difficult to lower taxes without danger of budget cuts. Brookings, a credible research group, however, reports that having an immediate government spending cut would make up for tax cuts. Making sure the backbone of the economy is stable is key to avoiding collapse of the economy. Therefore, Tax Rates on Small Corporations and Business Entities should become law in order to help small businesses generate more net revenue from slightly lowered tax …show more content…

It would also keep more money inside the business instead of a lot going to the government. The United States economy is large compared to other countries, and that is why it is vital to keep it stable. If a lot of money is going to the government, and less to go around the economy, it becomes unstable, which damages the economy. With this bill, the government would still keep most of its revenue, but it will also make sure small businesses get some form of safety until they can gain enough traction to get past the $5 million threshold, in which it would then be considered a stable and large business. Small businesses run the economy, so maintaining the stability of these businesses is the top priority to achieve a consistent growth of the economy in the

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