Cut taxes for Small Businesses

Cut taxes for Small Businesses (0 Comments)  

Author

Gerry McLaughlin  

Date

9/2/2010  

Article:

Slow Recovery

According to Alan Greenspan, who ran the US economy for so long, the recovery is going to be slow and tepid.

Unemployment is likely to remain high for the rest of the year.

The best way to get the economy going, he reckons, is to cut taxes for small businesses – which are the motor of the economy.

Greenspan said “They are the big creator of jobs,” he said. “But they won’t hire anybody if they don’t have any business.”

Banking Meltdowns

When downturns in the past have been caused by banking meltdowns the recovery has always been very slow.

It’s unlikely to be different this time.

There are two reasons for that.

Firstly, the banks don’t have money to lend small businesses like they used to have.

Legislation

Secondly, legislation is always put in place after banking meltdowns which slows the pace of economic recovery as it restricts what the banks can do.

The best antidote to this would be to cut taxes for small businesses so that they can use the money saved to increase their business and to hire more people.

But will Governments do that?
 

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