Sole proprietorships: tax benefits to offset the double taxation in the policy change.
Small Business Incubators: public/private incubator network developed to help promote small business growth and innovation.
re: the herbert hoover thing -- invalid comparison. back in the day, we actually had a balanced budget, and the increase hoover imposed more than doubled the top tax bracket rates. in addition, hoover tried to pass tax cuts first, but almost every politician said it would be a sign of weakness in the face of economic turmoil.
I'm still unclear on the startup capital gains thing. Startups generally don't pay them until they exit. So presumably the only people saving money are ones who have small exits? I'm sure he's still going to tax founders of the next Google handsomely.
Those are top tax rates right? There's little evidence that reasonable increases in top tax rates have any effect on new businesses. Ridiculous taxes (like the 70% we had under Carter) clearly do, but there's almost no difference in terms of businesses started in any rate under 40%.
I'm not sure where these numbers are coming from. Sole proprietors file Schedule C on their personal returns, and S Corporation taxes are passed through to individual owners' returns, as well. That implies they should be paying the same rate; there is no separate S Corporation tax rate. If Obama (with Congress) cuts taxes on 95% of Americans, i.e. people making less than $200K per year, then they'll also be cutting taxes on the vast majority of subchapter-S corporations and sole proprietors.
Also of potential interest on this topic, the effect of changes in the Marginal Tax Rate on small business formation in the United States:
I thought that the taxes were raised on profits from 250.000 upwards? As in, you pay 34% on your first 250.000, and if you earn 300.000, you pay 40% on the remaining 50.000.
Oh and I thought pg specifically said that politics would be kept out except for the 1 discussion/winner thread