Destroying Small Business: How 8.4 million Small Businesses Could Be Devastated by the 87,000 New IRS Bureaucratic Army

Craig Huey Government, Congress, and Politics Leave a Comment

87,000 new bureaucrats will soon be auditing small business owners all across America.

They believe every business is guilty — until proven innocent.

These bureaucrats believe that they are heroes for every new dollar they collect.

There are over 8 ½ million small businesses, and entrepreneurs in the United States. These businesses will be hit with a likely audit to try to try to find something they did wrong.

The Net Investment Income Tax (NIIT) is supposed to add $262 billion in new taxes. Probably not, but it will destroy and cripple millions of small business owners.

Many of the 87,000 army of bureaucrat will be targeting small business owners who have S-corporations and partnerships. That makes up 64% of all small businesses.

These small businesses employ nearly half of all American workers.

As an economic and business expert, I can tell you that will be devastating. As a small business owner, myself, I know it will destroy small businesses and entrepreneurs.

Taxes in a recession only help to make a recession worse — It’s bad economic policy.

Taxes on small businesses hit new entrepreneurs the hardest, and we will not experience the new innovations entrepreneurs bring.

The tax will further destroy jobs and economic recovery.

Taxes destroy wages.

They destroy jobs.

They destroy new products and services in the marketplace that benefit everyone.

When this happens, watch prices go up.

What Congress needs to be doing is lowering taxes to create an economic boom.

This is what happened under President Trump when he lowered the capital gains tax from 35% to 20%, and other taxes and regulations were reduced.

And even with the devastating shutdown of business caused by COVID-19, we experienced an economic boom- V-shaped- that shocked the socialists but was predicted by those who understand the power of the free market. It was because the government, and taxes, stayed out of the way.

It brought 4% GDP growth (it was 1.5% under Obama) and many new jobs as well as business recovery. People’s wages rose at every economic level.

The economy grew by more than $1.5 trillion by the second half of 2020, even with COVID lockdowns it was over 15% growth.

Over 12.5 million people returned to work during that period. Under Biden, job growth is down by half at around 542,000 — Biden has added 31% fewer jobs.

That’s what the free market does.

It creates jobs.

It creates higher income.

It creates new opportunities and innovators.

What do you think? Email me at craig@craighuey.com 

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