The Real Mitt Romney

[Happy Monkey]

Originally Posted by Flint

For example, business A. pays slightly less in taxes, they will invest this in growing their business, thus growing their profit (assuming the same margin, getting 'bigger' produces more revenue). So, they add production, increase output, and service new customers. Every part of the industry they are a part of incrementally increases in capacity.

But business expenses are deductible, so if they want to invest in growing their business, they can do that pretax anyway.

Plus, if a "small business" is not only making $250,000 in taxable income, but making enough over $250,000 that the extra money taxed at that rate is significant, they are not the local corner store that politicians want you to picture when they use the phrase "small business".