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Notes from a Chicago entrepreneur and investor.

Small Business Need Lower Taxes To Hire More

Fastest way to jump start jobs:  Cut taxes.  Reasons are two fold:  for small companies, most of which are LLCs and S corps so taxed at personal rates, lower taxes means more cash to invest to hire people, and feel comfortable doing so.  Since most employment is from small companies, this is BY FAR the best thing that can be done now to drive jobs. And I see this with some of my own angel investments — less taxes to Uncle Sam would mean more hires, period.  Second reason is math - the after tax net present value of cash flows increases by definition with lower taxes, therefore making more investment projects hit target hurdle rates.   It works.  We should do it.  It’s NOT about the rich getting richer - it’s about giving small businesses the ability to hire more people.

  • Dmac
    Sounds great, Alan - but with our city facing billions in shortfall due to pension obligations, looks like it's going to be Rahm's job to face up to the unions in short order, or else we're all SOL. Not to mention Quinn's reluctance to face reality - but at least Madigan has floated the idea of some kind of pension reform, but he'll never take the necessary steps, preferring instead for someone else to fall on their swords. And so the merry - go - round continues...
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