Big Business and Small Business Are Not Foes

By July 30, 2010Taxation

Quit playing games with my heart.

The House floor played out today like that tired Backstreet Boys song, as leadership brought up a bill that pitted small business against big business.

At issue was repeal of the onerous 1099 reporting requirements on U.S. businesses that just a few short months ago the House passed into law as part of the health care reform. But to offset the repeal, lawmakers included more than $10 billion in tax increases on American companies that have overseas operations.

They could have just taken the exact text of Senator Johann’s amendment that would have achieved the same goal without raising taxes.

But they simply couldn’t resist putting the business community in a bind. Just like cat versus dog, ketchup vs. mustard — today it was small vs big.

We’ve all fallen for this twisted logic before. But the truth is – like ketchup and mustard and cats and dogs – big business and small business are not against each other, rather they complement one another.

Every big business was once small, most small businesses strive to be big. Without small businesses, big businesses have no suppliers, without big businesses – small businesses have no buyers.

The House played a game and politics may have won the day. But economic growth and job creation lost out.

UPDATE (7:45 p.m.): The House failed to gather the 2/3rd vote for passage of H.R. 5982 under suspension of the rules. The vote was 241-154.

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