Login
or
Register
Home
»
Trains Magazine
»
Forums
»
Passenger
»
subidies
Edit post
Edit your reply below.
Post Body
Enter your post below.
<p>There are more than 3.5 million corporations in the United States. Most of them are small, S-Chapter corporations. This does not include sole proprietorships partnerships, etc. Under the tax code they deduct their business expenses to derive net income. In one way or the other they pay tax on that net income.</p> <p>Most of the tax code deductions flow to all qualifying businesses. For example, the R&D credit is available to any business with a qualifying R&D expenditure or expense. This is not a subsidy. If a business gets a tax break that does not flow to other businesses or industry, claiming that it is a subsidy may be appropriate.</p> <p>Most businesses are born of a hopefully good idea. They offer goods and services that people are free to buy in an arms length transaction. If people don't step forth in sufficient numbers to buy them, the business fails. According to the Small Business Administration, 56 per cent of business start-ups fail within four years. And approximately 70 per cent, according to the SMU Entrepreneur Program, of which I am a graduate, are gone within 10 years. Hardly the hallmark of all businesses get subsidies.</p> <p>Unlike Amtrak, which is dependent on direct government cash payments, businesses have to raise capital in the private markets. Some businesses may qualify for Small Business Administration Loans, but fewer than 2.8 per cent of start-ups with employees receive government backed (SBA) funding.</p> <p>Outside of Amtrak, I cannot think of any business that receives an annual direct cash payment from the federal government to cover its losses. And has done so for more than 40 years.</p>
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag
Update Reply
Join our Community!
Our community is
FREE
to join. To participate you must either login or register for an account.
Login »
Register »
Search the Community
Newsletter Sign-Up
By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our
privacy policy
More great sites from Kalmbach Media
Terms Of Use
|
Privacy Policy
|
Copyright Policy