Jul 12, 2013

On Tammy Baldwin's Small Business Innovation Act

Needed with the newly introduced Small Business Innovation Act of 2013, is a tax code change for the self-employed making sub-poverty [less than $9,750] annually and still getting gouged by taxes at rates exceeding that of multi-billionaires. Why are
entrepreneurial, self-employed individuals making sub-poverty money getting punished by the tax code for being entrepreneurial, innovative and self-employed?

Wisconsin's newest senator, Tammy Baldwin announced her first authored initiative in the U.S. senate, introduced as the United States veers further into plutocratic territory, rivaling now the gilded age in wealth inequity.

Baldwin (D-Wisconsin) is pushing the rights and social utility of startups and small businesses, calling for funneling public money to get folks started in business.

Good for Baldwin.

If Republicans really believe in the value of free enterprise, they'll leap to her side and advocate for what is actually common sense, something you do not often see in Washington.

Baldwin introduces the "Small Business Innovation Act of 2013 to help fuel small business job creation and economic growth that is so desperately needed in Wisconsin. The legislation, Baldwin’s first bill in the U.S. Senate, will help provide startup businesses the capital they need to grow their companies and create jobs."

While we wait for Paul Ryan, Scott Walker and House and Senate Republicans to leap over each other to join Baldwin, one feels compelled to point to a needed change in the tax code for a particular small business, entrepreneurial enterpriseself-employed, low-income Americans.

Self-employed folks looking to make ends meet in a depression-era, jobs-lacking economy who make less than $9,750, are still forced to file income tax forms, if their incomes are above $400 and below $9,750, and they get taxed heavily.

Concomitant with the Small Business Innovation Act of 2013, we need to change the tax code, with real reform, [not pay-backs to the Koch brothers and other billionaires as Republicans advocate], to address how the self-employed, low-income tax payers making below-poverty income are now gouged. 

True also is the fact that tax deductions are available for the below-poverty, self-employed, but tax deductions certainly cannot be counted on in many situations and the fact that Americans—those who happen to be self-employed—are taxed at all while make less $9,750, it is an outrage.

The taxes imposed on the low-income self-employed are vicious, with tax liabilities from combined state-federal taxes comprising some 30 percent in many cases. 

Ask a graduate student who grabbed a gig to make it through school.

Say a new, entrepreneurial, innovative college graduate [or anyone for that matter] lands a freelance editing gig, makes $9,000 in total income; she would have a combined state-federal tax liability of some 30 percent. 

Whereas, someone who works as an employee and makes less than less than $9,750 owes no taxes, and in fact does not have to file (though she should anyway).

This situation begs the question: Why does an entrepreneurial, self-employed individual making sub-poverty money get punished by the tax code for being entrepreneurial, innovative and self-employed?

My question for Republicans is: Will you join Sen. Baldwin in advocating the
Small Business Innovation Act of 2013, and blast and change the tax code wherein sub-poverty, self-employed, single Americans pay higher rates than billionaires? 

Timely as always, Paul Krugman asks today: "Do Republicans have anything to offer to "disaffected working-class white voters"?"

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