So we've been studying taxes and how they work lately. One thing I definitely remember is how simplicity is an essential part of having a successful and effective tax. Its pretty straight forward. After all, no one wants to just blindly give up a portion of their income to the government. You've got to know what you are doing with the money.
I came across this article on the Fox Business that questions if simplifying taxes could hurt small businesses. Honestly I have no idea how this works nor do I fully understand the article but I guess since its at least related to class I'll give it a shot. According to the article, U.S. businesses received 161 billion dollars in tax expenditures in 2013, and small businesses account for 40 billion of that. The issue the article brings up is that by lowering corporate tax rates, the government would be forced to cut many expenditures for small businesses, which would raise their tax bills. Right now, the United States has the highest corporate tax rates in the world.
That concept makes perfect sense to me, however I still don't understand what this has to do with tax simplification. Maybe you can help explain this further? One thing for sure is that small businesses are a huge part of our nations economy and that harming them financially would only wreck our already highly disturbed economy.
