I have talked to Democrats who claim higher personal income taxes somehow creates Jobs because the business owners will hire Workers to avoid higher
taxes they will keep the money inside their business and not pull out the money as personal income by writting themselves a bigger paycheck they will
write themselves a smaller paycheck use the rest to invest the rest ? My understanding is the Rich could invest to have lower income taxes but they
could also buy equipment or hire outside firms.
What Conservatives Won’t Tell You: Higher Taxes Equal Reinvestment And Jobs
By Ray Medeiros
What the conservatives do not know or don’t reveal is, higher taxes make businesses re-invest most of their profits into the corporation.
This is one of the reasons President Clinton had a booming economy. He raised taxes on the wealthy. Rather than pay the higher tax rate by extracting
profits for personal use and having it sit on the sidelines, they re-invested it, creating a chain reaction of jobs.
What we are seeing today is lower taxes leading to owners extracting money rather than reinvesting it. The cash sits on the sidelines in bank
accounts, or in their wallets. So let’s raise taxes, and “force” this idle cash back into businesses for reinvestment and create the jobs this
country needs.
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