- Posted On: Jan 08
- Posted By: John Duff
The vice presidential debate emphasized on the importance of small business to our economy. However, both Joe Biden (Vice president) and Paul Ryan (Representative) did not mention any solid measures regarding the upliftment or support for small business, in the presidential debate.
However, there were certain issue that was left unattended in presidential debate:
- Plans for improving small business access to credit
- Crowd funding or other innovative approaches to supporting start-ups
- Encouraging entrepreneurship, self-employment and small business
Most of the presidential debate was centred on tax reforms, Bush era tax credits, exclusively with the perspective of small business. The candidates and their parties disagree about the consequences for small business owners if Congress fails to extend Bush era tax credits to individuals who earn more than $200,000 annually. Biden and Ryan’s references to small business during the debate related mostly to how extending or failing to extend existing tax policies will impact small business owners.
If the Bush tax cuts are allowed to expire this year, according to the Joint committee on Taxation, only 3 percent of small business would be affected. Ryan claimed that two-thirds of jobs in the US come from small businesses and that failing to extend the breaks would “tax about 53 percent of small business income.” Biden counteracted that 97 percent of small business owners make less than $250,000.
The fact checkers got considerably busy during presidential debate, as they kept on checking all the figures mentioned by Ryan and Biden during the presidential debate. Some of the facts rechecked and declared are:
- Republicans say that would hit small-business owners who report business income on their individual income tax; Democrats say majority of small businesses would not be affected.
- Higher taxes on individuals would hit 53 percent of business income. When Republicans often speak of “small businesses,” they are referring to the companies that file under the individual tax code. Some of these companies are rather large, with revenues of more than $50 million, but they represent just a small proportion of such companies.
- Under Obama’s plan, 97 percent of small businesses would get to keep their Bush-era tax cuts.
Small business majority national polls reveals that small businesses agree that tax cuts should lapse, as they believe larger organization uses loopholes to avoid taxes that small business have to pay. Moreover poll shows only 3 percent of respondents had annual household income above $250,000.
However most of the press and Americans are happy that small business is the central point of presidential debate and they hope fruitful strategies comes up in the later weeks.