One of the main Republican arguments against increasing the tax rate for individuals making over $200,000 and couples making over $250,000 is that it will impact small businesses.
There is a simple solution to this problem - give oversized tax credits to companies that increase the size of their workforce. Simply put, for every additional employee hired, let a corporation count it as oneandahalf or oneandaquarter for expense purposes.
This would encourage hiring - which, in the long run, is the only way to increase governmental revenues without adverse side effects. Dropping the unemployment rate not only makes people feel better about themselves, the taxes they pay are a boon to the treasury.
This simple approach avoids the cost of yet another stimulus while giving businesses an immediate incentive to increase their payroll.
Most businesses believe that more salespeople will result in more sales. However, that is balanced against what government will take away from them for those increased sales.
Help them sell more by having an additional salesperson or two.
Then collect the income tax from the new salespeople - as well as the additional tax on increased revenues.
* Editorials reflect the opinion of the publisher.
