Green Witch: You may be aware that there are strong currents of opinion in the USA which believe that small businesses like yours should have their taxes lowered dramatically. The left wing is horrified at such a proposal since they say the money is needed to fund the government and its entitlements. However, it is clear that whenever a President( John Kennedy, Ronald Reagan, George W. Bush) cut taxes dramatically, REVENUE GOING TO THE TREASURY INCREASED.
How can this be? It sounds counterintuitive. How can you get more tax money into the US Treasury if you cut the tax rates?
If your cut of the tax rates allows more businesses to prosper and more people to work, the government will gain more money than if the tax rate had not been cut.
10 businesses that pay $10,000 a year in taxes equal $100,000 for the government.
But 14 businesses( there are four more businesses since because of the reduced tax rate, it is more feasible to open or enlarge a business) that pay $8,000 a year to the government( a 20% tax cut) will send $112,ooo to the government.