Friday, January 18, 2008

Self-Employment Income Should Be Income Tax Exempt

Self employment income should be income tax exempt. The tax code should encourage Americans to start their own businesses and to become self-reliant. The tax exemption could be limited to a number of years, such as 10 or 15, and to a maximum number of employees claimed for deductions, with a sliding scale from 0 to 25 employees, and no exemption thereafter.

Part of the moral deterioration that has occurred in America comes from the interpersonal manipulation and separation of ownership and control characteristic of large organizations. Small business is responsive to the market and proprietors are forced to deal with reality. Thus, business ownership makes better citizens than does employment in a large organization. Increasing the share of the population that is self-employed would likely improve the nation's moral tenor. As well, those who are unemployed might find that tax free self-employment earnings can assist reintroduction into the workforce.

2 comments:

Michelle B said...

Nice post. I want to run my own business soon, so this is helpful. Instead of starting a business from scratch though, I'm interested in buying a business. I know it'll be hard and challenging, but I'm up for it. Any suggestions? Advice? Thanks.

Carol Eep said...

Michelle -- There are a lot of resources you can use online. One of which is BizTrader.com. It's an online global marketplace where you can buy a business, or even sell your business. You can also use it to find a lender or broker. It's a good place to find a small business on the Internet.

I also recommend checking out small business groups in your area. They might be able to help you.

Good luck!