With a little over a month before the 2024 presidential election, candidates share how they plan to boost the economy and support small businesses. Vice President Kamala Harris proposed increasing tax incentives for small businesses, with the goal of creating 25 million new small business applications over four years. During Donald Trump’s presidency, he lowered the tax rate from 35% to 21% and now seeks to reduce it further and make the cuts permanent.
John Surdyk, an expert on entrepreneurship within the Wisconsin School of Business, points out the potential downsides of federal interventions such as tax cuts and subsidies. He warns that these measures can distort markets by favoring specific industries, create administrative burdens, and foster dependence on government support, which may hinder innovation and growth in some small businesses.
To read more, check out the full article at https://business.wisc.edu/news/ask-an-expert-can-tax-cuts-or-incentives-have-unintended-consequences-for-small-businesses/.
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