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Proof high taxes force small businesses into bankruptcy

President Obama is rapidly molding our nation into his vision of a progressive paradise — high taxes on businesses and "the rich" to fund lavish utopian social programs and fatten the coffers of labor unions and the workers they represent. But if the examples of New York, New Jersey, and California are any guide his admiration for progressive taxation will put us on the road to perdition.

And all 3 states are still raising taxes. New Jersey's top tax rate is set to be 10.75% and will apply to people making more than $400,000 per year. California's legislature is deadlocked with their "Governator" over which taxes to raise the most. And New York is a circus right now thanks to the idiocy of their state senators and the ineptitude of Gov. David Paterson.

To top this off, I just read of a new academic study from the California State University-Northridge College of Business and Economics entitled "The Tax Burden and the Propensity of Small-Business Entrepreneurs to File For Bankruptcy". The conclusion is quite interesting — high tax burdens are a significant contributing factor to small business bankruptcy.

That this fact should come as a surprise to progressives indicates their unseriousness regarding economic issues. The president's massive $787 billion dollar Porkulus bill has done little, if anything, to improve our economy. The Cap & Trade legislation he's railroading through Congress will strangle businesses in red tape and higher energy costs. Health care "reform" promises to lower our costs (without specifying how) while imposing $1.6 trillion in new federal spending.

Most of this money is destined to come out of the pockets of small business owners. They are the backbone of our economy and the best engine of job creation we've got. As they divert more of their money to taxes and energy costs they will be unable to hire or retain workers. They may even fall into bankruptcy. As the tax burden goes up, so does the likelyhood a small business will go under.

Instead of a vibrant private sector economy President Obama is leading us toward a permanent and massive welfare state. He already controls the auto and banking industries. His health care plan will make the vast majority of Americans dependents of the government. As high taxes force small employers out of business even more people will turn to their government for salvation.

His plan is to turn us all into beggars because they're easier to please. And besides, people dependent on the government invariably vote Democrat. The Democrats like that because they can live high on the hog whilst tossing a few crumbs to the folks in line for their government cheese.

Posted at 15:09 by Chris Wysocki   []   Comments | Archived | Perm Link |
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