Thursday, June 9, 2011

Job Creation, A Small Business Owner's Idea

Letter to Congresswoman Cathy McMorris Rodgers:

Cathy,

Thank you for representing us so well. We met briefly at a Lincoln Day dinner in Walla Walla and talked about my trip to Boston in the days just prior to Scott Brown's election.

I have been a small business owner for 35 years, have a Bachelors of Business Administration with an accounting major.

I have an idea to stimulate job growth. The target audience is other small business owners, who both sides of the aisle agree are the best engine for job growth.

I think Congress should consider a regressive tax for closely held owners of small business corporations and for sole proprietors. Instead of taxing business owners more for each additional $ they earn, tax them less. Reward small business owners for growing their businesses.

The tax credit would only apply to increased income above the average of the three prior years reported income. Congress could approve a lower tax; say 10% for the increased reported incomes. The present tax rate would apply for the income average reported previously. Therefore there would be no reduction in tax revenue on existing earnings, simply a lower tax on additional earnings, giving small business owners motivation to grow their businesses because they would keep more, not less, of the additional growth income.

The treasury would benefit from the increased tax revenue generated from the business growth and additional jobs would be created by the need from these growing small businesses.

No revenue shortfall to stimulate the economy, simply motivation for small business owners to enjoy capitalism at its best and make as much money as they can.

Respectfully,

Evan Hecht