In Norway, Start-ups Say Ja to Socialism

[Yo_Mama]

10. Oh, US tax rates for small corporations are VERY HIGH.

In the US, our small business tax rate is almost uniquely high. A small corporation with taxable income of 300K would pay 39% on $200,000 of that taxable income.

Then, oddly, the tax rate drops down to 34% from $335,000 to 10 million. That is of course just the federal tax, and there will be state tax, sometimes local tax.

If we want to generate jobs, we need to cut corporate tax rates for smaller businesses. The system we have created favors very large corporations and punishes small businesses, and of course all startups tend to be small at one point in time or another. That is where a lot of the new jobs are created, so our system literally suppresses job creation.

We also have the pass-through option, but with the recent increase in personal tax rates that is about the same now, I think.

I don't see why a small business in the US should be paying that much more than a small business in Norway or Denmark or Sweden.

I agree that the large corporations aren't paying their fair share of tax, but what's often forgotten is the environment for small businesses. This is nothing that anyone would rationally design, and I think it is really proof of how skewed our tax policy is by political lobbying.