On my post from last week, Mark Cuban (and yes, I know it's really him and not some commenter calling himself "mark cuban") makes the case that the benefits of getting rid of taxes on small businesses outweigh the possible drawbacks:
It comes down to this, would you rather have small busineses worry about what to do with their 26th employee or not start the business because they cant afford to deal with all the tax burdens.
No proposal is perfect. But creating a decision point at 25 employees is a far better scenario than stifling innovation and entrepreneurship before it can get started
I agree that just because a proposal is imperfect is no reason to oppose it. I also think that cutting these taxes is better than the status quo, so I am not a supporter of doing nothing. But I can't help wondering if there is a way to make the proposal a little bit closer to perfect. That's why I mentioned in my initial post on this subject a perhaps better alternative: no taxes for businesses in their first year of operation. That would eliminate the disincentive to entrepreneurs to take risks and start businesses, but without the potential for different disincentives down the road.
So what do you think, Mr. Cuban (and everyone else): Lift taxes for new small businesses?
Another question—why is neither Barack Obama nor John McCain talking about this?