“Cutting regulations on business is not going to be nearly enough to brings jobs back..”
Tax policy can also help. Small business is historically the source of most new jobs in the US. Regulatory, tax and trade policies are killing small business. Obamacare (a tax and redistribution scheme) is a huge boat anchor around the neck of growing small businesses. The biggest issue for a growing small business is securing cash to fund growth. Every dollar the US government takes from a small business through taxes or regulations that increase costs restricts growth and hiring.
Most small businesses fail within five years. To keep the economy growing we need many more small business startups each year than failures. Under Obama the number of small business startups has dropped below number of annual failures. This statistic has received almost no attention from the press and our political class but it is a huge canary in the coal mine warning.
Cruz has proposed a 10% flat tax for individuals and 16% on business. This will lower the effective tax rate on small business, plus eliminate the complexity that forces small businesses to waste precious cash hiring accountants and tax lawyers to file taxes and stay out of trouble with the IRS. The 16% business tax will also be applied to imports which will help level the economic playing field for small business. The tax on exports will be removed making US goods more competitive overseas. Plus the death tax (inheritance tax) will be eliminated removing the problem of business continuity when the owner dies. Under today’s tax system, some family businesses must be sold when the owner dies to obtain the cash to pay high death taxes.
Cruz’s tax plan is actually a good start toward reigniting the job growth engine of the economy — small businesses. Regulatory relief will also benefit small business. Small business would also benefit from anti-trust enforcement and decentralization of the banking system (i.e. break up the “too big to fail” banks). It isn’t clear where Cruz stands on anti-trust policy but he did once work for the FTC so he has some knowledge of anti-trust law. As to the big banks, his wife is a Goldman Sachs executive so he may not look favorably on breaking up the New York banking cartel headed by Goldman.
Elimination of Obamacare, another part of Cruz’s platform, will also help small business, particularly those whose growth is causing them to hit the 50 employee threshold where providing employer paid health insurance is a requirement. Hiring the 51st employee results in a business having to provide health insurance to all of its employees. The average cost to an employer in 2014 in the US for employer paid health insurance was $5832. This results in an incremental annual cost to a small business of $297,432 when it hires the 51st employee.
Cruz’s support of TPP may be problematic for small business. Government negotiated trade deals requiring thousands of pages of details are not free trade. Such agreements define advantages given to some economic players and penalties assessed on others. A real “free trade” agreement would require a simple paragraph, not reams of legalese. Any preferences in a trade deal benefiting foreign companies will be harmful to all US businesses, large and small. Our trade deals of the past 25 years have been more harmful to US job creation than helpful. Why would the TPP be any different?
We don't need more small businesses...All they provide are part time jobs with minimum wages...We need big business jobs...Manufacturing...That's one of the differences between Trump and Cruz...Cruz is pushing the party line which has been pushed for years and years...And look where that has got us...
Cruz’s tax plan is actually a good start toward reigniting the job growth engine of the economy — small businesses.
It's no start at all...He plans on putting hundreds of thousands of gov't workers out of jobs not the mention the private sector jobs that support these gov't jobs...They will have no need of more small businesses...
It isn’t clear where Cruz stands on anti-trust policy
It's clear to me...He hasn't even mentioned it...Besides that's a Republican issue...Elimination of the anti-trust laws fall right in line with the GOP position of maximum profits for business...It's going to be pretty tough to put the water back into the hose...
Cruz’s support of TPP may be problematic for small business.
It's problematic for all business...Cruz and every other candidate is for unfair trade...Trump is against unfair trade...Anyone who honestly looks at the issue realizes that all this unfair trade scheme is the engine that removes sovereignty of the Unites States as well as other Countries...