October 28, 2004 Given our country’s sluggish economy, both presidential candidates say they will help spur small business growth over the next four years. Their strategies are very different, however. President Bush, in a speech to aviation workers in Wisconsin, elaborated on his tax relief plan, which emphasizes the reduction of personal tax rates. He claims that cutting the personal tax rates has a positive effect on small businesses, because most of them are subchapter S corporations or sole proprietorships, which means they pay tax on corporate profits on their personal returns. “If 70 percent of the new jobs in America are created by small business, and by reducing all tax rates puts money into small business’ pockets, it seems to make sense that people ought to be supporting the tax cuts all across America,” Bush says.
