Argument: Small businesses depend on product demand, not tax breaks for wealthy

Issue Report: Expiring Bush tax cuts for the wealthy in 2010


A 2010 Congressional Budge Report Found: “Increasing the after-tax income of businesses typically does not create much incentive for [small businesses ] to hire more workers in order to produce more, because production depends principally on their ability to sell their products.” In other words, if you’re worried about the fragile state of the economy and you want to do something to make sure recovery is not set back, there are any number of more effective ways to spend that money. Continuing to help states pay their Medicaid bills would be one.[1]