Taxes and Entrepreneurship

As the campaign season heats up and the two major candidates issue talking points that obfuscate what they will do with the Bush tax cuts, let us ponder a tax policy that makes sense for entrepreneurs.

We were told that if America cuts taxes for the wealthiest American's then they will invest their money to create jobs for us. Isn't that benovolent of them to want to get a return on their capital and in the process give us a few jobs? The problem with this stimulus is that capital is global and wealthy Americans' investments may not directly create American jobs unless the tax cuts are contingent upon investing in American companies that operate entirely within our borders.

Now I don't believe that Americans are entitled to having jobs created for them anymore than I believe that we have an obligation to create jobs for others unless our enterprise needs labor. However, I do believe that we can make policy decisions that reflect our national goals and values.

It makes sense to cut taxes for the middle class (35K-160K?) to allow the middle class to invest in their own ventures or the ventures of of their friends and family members. Not only will this allow for individuals to create their own jobs but it will result in spending on business start up needs. (office space, computers, transportation, supplies, hiring, etc.) This will stimulate the economy and drive job creation.

Furthermore, small businesses will create demand for professional services such as tax planning, legal advice and accounting. Rather than revisit the failed trickle down policies of the 1980's let us invest in gushing upwards innovation of the twentieth century. Let individuals prosper and the country prospers.