No to increased taxes

mrussel1 said:

Gern Blansten said:

rr165892 said:

eddiec said:

rr165892 said:

So we are back to the origins of this thread.If being happy but broke is appealing then vote for Bernie.Im sure if hes in office you will get plenty of free shit.Wont need to pay much in taxes,higher wage earners will pay your share.Looks like a solid life plan.

I dont know.I guess the thought of more income,less taxes appeals to me more.im old fashioned that way

Here's a scenario:

Let's say you own a shoe store. It called 'Big RR's Sport Shoes and Yoga Pants'. You are a self made man and a lover of capitalism. Your store is located in one of the major cities in the US.

Now, every time Nike releases a new pair of Air Jordan's you've got a ton of people on welfare coming in and using their welfare money to have the latest edition of Air Jordan's. Is this a smart thing to do? No, but a lot of people on welfare are uneducated and spend every penny they receive from the government.

But...you want lower taxes so you vote in a government who lowers your taxes by 2% by cutting a lot of welfare programs. Sounds great right. But then the new Air Jordan comes out and your sales are cut by 30% because all those people on welfare don't have the checks to run out and spend. Now the 2% you saved becomes a tiny figure compared to profits lost.

Social programs feed capitalism. The government understands this.

ED,please drop the Sport Shoes from my title.

Here at Big RRs yoga pant and sport bra emporium we specialize only in ladies exercise gear.My location is uptown (location,location,location) in a high dollar affluent market place.so no welfare shoppers frequent my boutique.But with future expansion,I may open up in an outlet mall downtown.

All kidding aside,your correct I am self made and a big lover of the ops Capitalism gives every single person who wants to work hard and make a life for them and their family.And if I can get my corporate taxes down and the govt dosent continue to rape me, I may hire 2 -3 -4 more people,who can then also pay taxes,feed their family ,contribute to the economy,pay off debt,buy a home and pull themselves up.See how that works.Its all a great. Big happy circle of life.

except that's bullshit....taxes are based on profits. If you are profitable and it makes sense to hire 2-3-4 more people you will have done that already or you are a shitty businessperson.

More employees should equate to more profit...which means you pay more tax.

That's how it works.

If you took your "profits" and invested them in wages you would have no profit and pay no tax...see?

Yeah, I've never bought this argument mostly because when we hire, it's based on demand, not taxes. In other words, I'm not hiring because suddenly I have more cash due to lower taxes. I hire because there is customer demand and because the tax rate isn't 100%, it's more profitable to sell more than less.

And second, I would only go subcontractor for a number of reasons: 1. the demand is short term, 2. I don't have the scalability for the role that company has and 3. I don't know what I want so I want to sub to hire someone. Subcontracting is not less expensive than FTE unless you are going off shore, and that's a whole different set of considerations. But in general, if you have work that you can scale, it's cheaper to do it yourself. Someone has to pay those employee taxes. Now you could go independent contractor and maybe you should.. they pay their own taxes.

But at the end of the day, I don't buy the "I'd hire more people if taxes were lower" argument. Most business owners would put that in their pocket or reinvest some other way.