A very perceptive blog post from Tom Campbell at NC Spin -
http://www.ncspin.com/spin/articles/2009_05_13_2917.phpHe makes a good case that North Carolina should support its small businesses more, and give away less money to the big corporations. I am biased - I have two small businesses in NC, and it infuriates me that the legislature takes my tax dollars and gives them away to huge corporations. Small business bears a lot of expense to comply with state regulations and taxation. For example, the state changed the sales tax collection method a few years ago to require that business pay sales tax twice a month, based on prior tax collection. They doubled the cost of compliance for a small business, with no net improvement in the overall tax collected, just better cashflow for the state. People see business owners as wealthy individuals, but the business owner is the one who signs personally for his business debt, and for many years, is usually reinvesting in the company to make it grow.
Another example, on the federal regulation level, is the restrictions on 401K contributions by anyone who owns more than 5% of a small business. All my employees can contribute up to 20% of their salary to the 401K plan the company created, but the owners are restricted to the company average(usually around 6-7%) plus 2 %.
Anyway, Mr. Campbell's post is very perceptive, and recognizes that small businesses are much more rooted in the community, and should be encouraged by our tax system.