The Small Business Struggle

In stark contrast, consider a small business with 20 employees, each making $40,000. Their total payroll of $800,000 is likely close to or exceeding their total revenue. Even if they could meet the $500,000 investment threshold (which is highly improbable for most small businesses), they would be unable to take full advantage of the tax credits due to their lower overall tax liability.

Moreover, the requirement to create 10 new jobs at $40,000 annually, plus maintain an average wage of $15.50/hour for additional employees, is often out of reach for small businesses, effectively excluding them from the program altogether. The property tax exemptions for large investments and high employment numbers are completely unattainable for small businesses.

While the absence of an inventory tax and sales tax on services might benefit small businesses, these advantages are dwarfed by the massive incentives available to large corporations.