Recently, Paul Krugman wrote in response to President Elect Barack Obama’s planned tax-breaks for small businesses that
First, Mr. Obama should scrap his proposal for $150 billion in business tax cuts, which would do little to help the economy. Ideally he’d scrap the proposed $150 billion payroll tax cut as well, though I’m aware that it was a campaign promise.
Dr. Krugman thinks that I’ll just horde the money away – well guess what …
That’s just not true!
Here’s what I will spend all money generated from either tax breaks or energy savings:
I would purchase new treatment tables for the remaining rooms that need them, I would purchase furniture for our relaxation lounge for our clients to have lunch or dinner at and I would send our department managers for additional advanced training. That money would go directly back into business building tactics and because we would be using it to purchase equipment and necessary supplies, it would help stimulate the economy.
So Mr. Krugman please think more clearly and consider what you are really recommending and how it will effect the small business owner and it’s employees……..
Obama’s Proposed Tax Cuts Total $300 Billion