I just have one last question about Tax Rates and Jobs ?

Can anyone refute or debunk this Liberal claim that a higher personal income tax means more Jobs because the businesses owners will invest to avoid higher income taxes can anyone disprove this ? I would think I would want to hire Workers so I can get a reward which is money therefor I would pocket the money also what is the incentive to hire is you are getting a smaller pay check ?

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.

www.politicususa.com...

Well since keeping the bush tax cuts for the rich hasn't done a damn thing to the unemployment numbers, I guess we need to give them more breaks? Is that what you're trolling at? So obviously that strategy didn't work, in spite of the republicans constantly claiming it was the silver bullet. Maybe you can explain why the economy was booming under Clinton and just went into a nose dive with bush?

The Reagan Tax Cuts helped Clinton.

Tax Cuts, Not the Clinton Tax Hike, Produced the 1990s BoomBy J.D. Foster, Ph.D.
March 4, 2008

www.heritage.org...

What about the "Fairtax" plan ?

maybe?

www.fairtax.org...

assuming of course there even is a link between taxes and jobs?

I have a question for you, Why would you follow the divide & conquer technique of “Liberal” vs. “Conservative”. Here on ATS we recognize that when a question is formatted is such a manner the one who is asking the question is attempting to pre-dispose the answer that is desired. We don’t fall for it.

Now with that said, both are just points of view. Some believe that in order to avoid taxation corporations will reinvest the money into the business others do not.

It is a very logical conclusion if the Government dictates to a Corporation that they will take a larger portion of profits through taxation the Corporation would increase business expense, one of which could very well be hiring more workers, however, the most likely increase of business expense increase would be reinvestment in to equipment.

reply to post by mikejohnson2006


I don't think anyone can give you an exact definitive answer. With out some political spin.

I would suggest you look at the stastics and plot a graph showing the long and short term growth and decline of jobs. Then do the same reflecting the rise and fall of taxes both on the overall population and then on the group of taxpayers in question. I am sure when evaluating your results you will allow for the time which may be required to pass in order for any effects to take place. Such as, how soon after any tax increase did jobs increase. And how soon after a tax cut do we have to wait for jobs to increase.

This should give you your answer as it will take the guess work out of the equation.

1. The simplest answer is that I don't go to a poor man for a job. Since the rich to upper middle class is whom I get a job from, I don't want them to have to choose between me and their taxes, ever. It frustrates me enough that they choose between me and their profits, as it is.

2. I don't want to fund the government we have. They have been poor stewards. Giving them more money from the taxpayer's pocket isn't even going to go towards our country's debt, or to creating new jobs, just more pork spending by BOTH sides, so taxation does nothing for me, who still wants the darned pay check. Funding welfare just staves off the inevitable, and does absolutely nothing to fix the problem. They don't have a history worth backing.

3. Generally, the really rich can find a loophole. Those who are teetering on the edge of upper middle class? They're the ones who are classified as "rich" when the new taxation rounds start.

4. There is no attempt to make a fiscally sound government, yet they want to take money from people who earned it. You know, if I was rich, I'd have less problem funding a government that was fixing itself, than with one who does not want to change it's ways. They don't have a future worth financially backing...yet.

The Rich keep money/wealth in their Company and create Jobs to avoid higher personal income where is the evidence that this works ? What I mean is if the Business Owner is making less Income a smaller paycheck would he have any Incentive to hire new Workers and or is this claim that higher taxes creates Jobs nonsense because not every Business Owner is going to hire to avoid higher taxes thank you ?

The Rich keep money/wealth in their Company and create Jobs to avoid higher personal income where is the evidence that this works ? What I mean is if the Business Owner is making less Income a smaller paycheck would he have any Incentive to hire new Workers and or is this claim that higher taxes creates Jobs nonsense because not every Business Owner is going to hire to avoid higher taxes thank you ?

Accutly hes right now why didnt I think of that?
Its works like this with high taxes . Your business is taxed on how much the NET not gross profit is for the year .
So if you want to avoid the higher taxes you do this by simply reinvesting all the profit into your business.
Now because the money is being used to grow your business its no longer considered a profit .And can no longer be taxed . Wile if taxes are low well heck A nice sking trip or boat or maybe my own jet ? humm what should i but with all my money now that I dont have to reinvest it to keep from paying taxes?
so Higher taxes would cause job grouth as company reinvest the profit to show no profit so as to avoid taxes .
Its always worked that way as a matter of fact capital gains tax can be gotten around in such a manner .KEY word is GAIN reinvest in more property there is NO official gain.even though you are making tons of money.

Originally posted by mikejohnson2006
The Rich keep money/wealth in their Company and create Jobs to avoid higher personal income where is the evidence that this works ? What I mean is if the Business Owner is making less Income a smaller paycheck would he have any Incentive to hire new Workers and or is this claim that higher taxes creates Jobs nonsense because not every Business Owner is going to hire to avoid higher taxes thank you ?

The only way that this would work is if we gave tax cuts on each new job created. Money out is money out, and at least 1 is geared towards more company investment. Yes, workers are investment.

Originally posted by xxcalbier
Accutly hes right now why didnt I think of that?
Its works like this with high taxes . Your business is taxed on how much the NET not gross profit is for the year .
So if you want to avoid the higher taxes you do this by simply reinvesting all the profit into your business.
Now because the money is being used to grow your business its no longer considered a profit .And can no longer be taxed . Wile if taxes are low well heck A nice sking trip or boat or maybe my own jet ? humm what should i but with all my money now that I dont have to reinvest it to keep from paying taxes?
so Higher taxes would cause job grouth as company reinvest the profit to show no profit so as to avoid taxes .
Its always worked that way as a matter of fact capital gains tax can be gotten around in such a manner .KEY word is GAIN reinvest in more property there is NO official gain.even though you are making tons of money.

Yes, the company reinvests, but the most value they get from reinvestment isn't necessarily in jobs. Hence why they said most of it goes to new equipment. Since the company can choose how to fritter away the profits that the company makes, and their best interest isn't in hiring more pay checks, and it's not a good idea to let your less astute investors know that you keep x employees instead of giving them the money, just to avoid taxes? There's a lot that goes on in this field.

Reinvesting money in your company is one way to avoid taxes however there are many other ways. Purchasing equipment and hiring outside firms to do do things are just a couple of ways to reinvest without hiring. Labor costs are something that most companies try to keep low. The liability is high and the new truck or equipment can't sue you like a person can.

Personally I see NO connection between avoiding taxes and hiring.

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.

www.politicususa.com...

Please if you can refute this claim made by this article thank you.


The Rich keep money/wealth in their Company and create Jobs to avoid higher personal income where is the evidence that this works ? What I mean is if the Business Owner is making less Income a smaller paycheck would he have any Incentive to hire new Workers and or is this claim that higher taxes creates Jobs nonsense because not every Business Owner is going to hire to avoid higher taxes thank you ?