When it comes to taxation, the typical small business man or woman is taxed by liberal politicians who accuse them of being “greedy.” Why should they not pay their “fair share” of taxes when they have been so fortunate to be in their own business?
Some facts:
1) Many small businesses are constantly on the edge of going broke; a large percentage does go under each year.
2) Most small businesses do not provide sufficient return on the capital invested. For every $100,000 of capital placed at business risk, the owner ought to get at least $10,000 a year for the risk involved. This is hardly ever the case.
3) Above the return on risk capital, the business man should get paid for time on the job, often ten or more hours a day. This translates into very little, well below the minimum wage for most entrepreneurs.
Those who buy a small business by borrowing have to repay the loans with after-tax dollars. I find that in most instances this is done only by taking away from honest returns on
personal investment in the business and the personal sweat running the business. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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