It depends on context.<p>When you think "small business", don't think "startup".  Instead, think "neighborhood shop" -- these kinds of small businesses represent the vast majority of hiring, and they hire help in response to customer demand.  So even if they could save the equivalent of one full-time employee on accounting and legal (an exaggeration, but let's go with it), they'd only re-invest that savings into other employees if it made sense to do so in light of current demand.<p>The general problem I have with the assertion that lowering taxes will create jobs, is that it assumes that taxes are the limiting step.  In my experience, that's not the case for small businesses.  The much bigger problem is ensuring that customers are always walking in the door.