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Hahaha! Boy! You're just flailing and frothing all over the place!!
YOUR BUSH lowered taxes for the rich....how's that unemployment rate going right now????? Lookin' good????
Please keep whining and crying all over the place...you make the repubs look like exactly what they are...spineless whining little cry babies afraid of their own shadows
I can explain some about this. There is thing called a Schedule C that all business owners file with their taxes. It includes their gross profit from the business, minus what they paid out in expenses (including employees, additions to their facilities, new vehicles, etc.). The business owner is only taxed on what he clears after these expenditures.
Let's use a scenario with a business person that takes home $1,000,000 after all of his business expenses are calculated. If the tax rate is 20%, he will pay $200,000 in taxes, which seems like a lot to us po' folks, but really affects the millionaire very little – he still has $800,000 to play with. He'll buy a vacation home in the Swiss Alps, maybe a newer Lexus, and then put the rest of the money into his savings or some foreign investments or offshore accounts or whatever so that he won't have to pay taxes on the interest or whatever. Will he hire a new worker? No, of course not...there's no reason to hire a new worker when consumer demand is low. And demand IS low currently. The middle and lower classes are hunkered down pinching every penny at the moment.
But now, let's say that his tax after business expenses is 50%. His choices are: 1) pay Uncle Sam $500,000 and keep $500,000 for himself, or 2) retain control of his own worth by re-investing in his business – that is, increasing the amount he can deduct on his Schedule C – and increasing the value of his business. That could mean expanding his facilities, or buying a new vehicle, or hiring a new worker, or expanding R&D...ALL of which help the general economy and create jobs.
With lower taxes on his guy, he has no incentive to re-invest in his own business at a time when consumer demand is so low. With higher taxes, if he wants to keep his worth, his best option is to sink it into his business and write it off as business expense.
And THAT is ONE way that higher taxes helps create jobs.
I read on another blog somewhere that "yeah, sure, higher taxes results in more GOVERNMENT jobs," vis a vis infrastructure improvements. Newsflash: the government doesn't do most of the work. It decides which jobs best benefit the public and then funnels the money to PRIVATE CONTRACTORS – paving companies, construction companies, etc. There is no United State Bridge Erecting Service, no Federal Bureau of Tunnels, no Ministry of Building. Those are all things that private companies – usually the lowest bidder – handle.
As a business owner in the top income bracket during Clinton, Bush, and Obama.
The decision to hire employees is based on demand, not taxes. In 2010, we made around $550k net profit. So, if the tax rate goes back to the Clinton years, we will have to pay 5% more on $300k profit, which is $15,000.
Do we want to pay an extra $15,000? No we don't, but it does not make us want to cut payroll because it would hurt sales. If demand continued to grow, we would not change our mind about hiring employees because it wouldn't make sense. Think about it. Would I really want to turn away customers because I don't have enough staff? No. Taxes don't influence the decision at all. DEMAND is the only thing that matters.
Personal example: Now to take the argument even further... if taxes are raised 5% on everything above $250k, it would give us an incentive to complete any needed projects. For example, we have an ancient heating system. It will cost around $30,000 to install a new system. We aren't sure how much longer we plan on owning this business, so we are putting that project on hold for now. If taxes were raised, we would want to invest in our business instead of paying more in taxes. It makes sense right? If we install the new heating system it not only adds value and saves on us money on utilities, we can write it off! This boosts our economy because businesses instead of sitting on cash are encouraged to spend their profits in order to pay less taxes, which add no value to the business.
During Clinton we experienced the longest economic boom in history.
Everytime the repubs try trickle down it hurts the economy and our jobs.
there is a chart out on wiki and some other places that lets you see
per president job creation.. its clear the dems create more jobs.
just look at the economic crash we are in right now. Creating billionaires
and choking the middle class into poverty does not help the economy
one bit. I think you knew all this though.
But Clinton cut taxes, with a big one with those capital gains taxes that are very popular with the rich, as well.
Clinton was blessed with the .com boom, along with it's cheap access to interest rates.
I guess you folks know companies will push for massive lay-offs if Obama wins, huh?
More factories going overseas, corporate HQs moving overseas....
Trickle-down does not work. During the Bush years, companies gave PROFITS to a select few at the top. These executives, fund managers, and corporate big-wigs enjoyed record perks. Damn the qualified american worker. Damn the quality of the product. To further increase profits for THEMSELVES, companies sought cheaper labor. With their increased profits, they didn't translate this to more jobs for the QUALIFIED AMERICAN, but a search for ways to make even more money for themselves. This was done to such an extent that the economy went into a FREE-FALL, and if Bush hadn't left office, we would be struggling through a DEPRESSION right now. So you have it wrong, for God's sake. Corporations and factories are going overseas to maximize profits for those at the top.
I think those who benefited most from this scheme should pay more taxes. They must bear the burden of resuscitating this economy since they had a huge part in wrecking it. They must pay for supporting a system of deregulation that enabled them to focus on foreign labor instead of training and retraining obviously qualified Americans. They must pay for supporting a system of deregulation that enabled them to discriminate against minorities, which worsened the opportunities these people had to be productive citizens rather than a burden. The GOP stinks and having NO TAXES during the Bush years certainly did not CREATE jobs. In fact, it had the opposite effect.
Companies that displace qualfied americans with cheap foreign labor should be penalized and taxed for the burden they place on this society. All foreign labor needs to be returned back to their home country if the unemployment rate indicates that there are qualified americans who are able to work. Those who aren't qualified, should be retrained to be qualfied. We don't need foreign labor when qualified americans are unemployed. Yet the GOP screams for foreign labor because the profit they realize makes those at the top fat, dumb, and happy while they thumb their noses at the rest. Taxes are one way to enforce this.
The higher the taxes, the more incentive there is for a business owner to invest in their business in order to show more deductions (thus, a lower taxable income), while still retaining their worth. Could be adding on, a new vehicle, a new furnace, or whatever. The point is, the higher the taxes, the more incentive there is to keep your money by building your business. Every voter needs to know how Schedule C works. Period.
Those that say that businesses need permanent tax cuts in order to have confidence (and, therefore, to start hiring again) are the business owners that just want to take the government for as much as they can while they can. They have no reason to add any employees at a time when consumer demand is so low. Up their taxes, and they'll have plenty of reason to invest in their own business in order to avoid paying the higher taxes – and guess what? THAT will create jobs!
The higher the taxes, the more incentive there is for a business owner to invest in their business in order to show more deductions (thus, a lower taxable income), while still retaining their worth. Could be adding on, a new vehicle, a new furnace, or whatever. The point is, the higher the taxes, the more incentive there is to keep your money by building your business. Every voter needs to know how Schedule C works. Period.
Those that say that businesses need permanent tax cuts in order to have confidence (and, therefore, to start hiring again) are the business owners that just want to take the government for as much as they can while they can. They have no reason to add any employees at a time when consumer demand is so low. Up their taxes, and they'll have plenty of reason to invest in their own business in order to avoid paying the higher taxes – and guess what? THAT will create jobs!
I can explain some about this. There is thing called a Schedule C that all business owners file with their taxes. It includes their gross profit from the business, minus what they paid out in expenses (including employees, additions to their facilities, new vehicles, etc.). The business owner is only taxed on what he clears after these expenditures.
Let's use a scenario with a business person that takes home $1,000,000 after all of his business expenses are calculated. If the tax rate is 20%, he will pay $200,000 in taxes, which seems like a lot to us po' folks, but really affects the millionaire very little – he still has $800,000 to play with. He'll buy a vacation home in the Swiss Alps, maybe a newer Lexus, and then put the rest of the money into his savings or some foreign investments or offshore accounts or whatever so that he won't have to pay taxes on the interest or whatever. Will he hire a new worker? No, of course not...there's no reason to hire a new worker when consumer demand is low. And demand IS low currently. The middle and lower classes are hunkered down pinching every penny at the moment.
But now, let's say that his tax after business expenses is 50%. His choices are: 1) pay Uncle Sam $500,000 and keep $500,000 for himself, or 2) retain control of his own worth by re-investing in his business – that is, increasing the amount he can deduct on his Schedule C – and increasing the value of his business. That could mean expanding his facilities, or buying a new vehicle, or hiring a new worker, or expanding R&D...ALL of which help the general economy and create jobs.
With lower taxes on his guy, he has no incentive to re-invest in his own business at a time when consumer demand is so low. With higher taxes, if he wants to keep his worth, his best option is to sink it into his business and write it off as business expense.
And THAT is ONE way that higher taxes helps create jobs.
I read on another blog somewhere that "yeah, sure, higher taxes results in more GOVERNMENT jobs," vis a vis infrastructure improvements. Newsflash: the government doesn't do most of the work. It decides which jobs best benefit the public and then funnels the money to PRIVATE CONTRACTORS – paving companies, construction companies, etc. There is no United State Bridge Erecting Service, no Federal Bureau of Tunnels, no Ministry of Building. Those are all things that private companies – usually the lowest bidder – handle.
So well said but many idiots on here (Obama bashers) will never quite understand economics. They will still support the current tax rates even though it has not helped jobs in the slightest.
So well said but many idiots on here (Obama bashers) will never quite understand economics. They will still support the current tax rates even though it has not helped jobs in the slightest.
Yep exactly!
"Why would a owner want to invest more money into their business during high taxes, when the government is just going to take all the profit away? Deductions? What's that?"
"Why would a owner want to invest more money into their business during high taxes, when the government is just going to take all the profit away? Deductions? What's that?"
Seriously, this is their argument?
Did you NOT read what smartypants wrote?
Putting money back into a business and employees improves the company.. increases the work force and increases profits even more and cuts tax down by doing this as all of this can be claimed on tax..... win/win....got it now?
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Utter nonsense
