As someone who has for many years been an owner of one C-corp, one S-corp, and an LLC, can I set the record straight?
My C-corp has always made as its primary goal the stable, gainful employment of as many people as possible. While over the years we have benefitted from some government programs designed to help us reduce rates on our bank financing and we have also received some deduction of local real estate taxes in order to stimulate local employment, I am unaware of any federal or state tax breaks we have ever received.
In fact, let's think about this.
With a C-corp, any earnings we leave in the business are taxed in that year at 40%+ between federal and state. So, if the business makes money and decides to re-invest that money in itself in order to employ more people, over 40% goes to the government.
But, what happens if we decide to take that money out instead? Now, we pay personal income tax and still pay croporate tax on any money left in the business.
Now, let's talk about S-corps. This is the real killer, despite S-Corps and LLCs supposedly being there to benefit owners, any profit earned at all, whether I take it out or leave it in the business, is taxed to me personally. It doesn't take a business of much size at all and this forces the owner into Alternative Minimum Tax (AMT) on their personal taxes, meaning they will pay combined federal and state tax of nearly 45% on both their personal earnings and all earnings from an S-corp and LLC even though the vast majority of that may be a "paper" earning.
So, Obama, where are these tax breaks for corporations? I have quite a bit of experience at this and have yet to see them. Can you tell me where they are? I don't think so.
All I see is working my butt off to provide employment to others, having everything I own either through a business or personally constantly 100% on the line with my bank, and getting taxed higher and higher every way I turn.
Am I bitter? No, this is still a country of HUGE opportunity and I am a much blessed man. But don't talk to me about supposed "evil" corporations and the unfair tax benefits they supposedly receive. It's bad enough with the government discouraging people from going out and being entrepreneurial and trying to change the world and economy for the better. The folks trying to bolster and drive this enconomy need to be encouraged, not driven down. We don't expect "special" treatment but we do expect "fair" treatment.