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3-Create jobs (via the lessened tax burden on employers), who then will be ABLE to hire. People who a re WORKING have more income which can be taxed. Instead of these people NOT working now who pay no income tax.
Originally posted by jtma508
reply to post by Deetermined
I've had my own businesses including an S-Corp for almost 10yrs. Last time I checked employee wages and benefits paid by the employer are a normal cost of doing business and as such are subtracted from the business' gross revenue (along with all the other costs of doing business) to arrive at the actual taxable income.
This whole 'businesses aren't hiring cause of taxes is absurd. At no time in the country's economic history will you find hiring and tax rates correlating. Hiring is driven SOLELY by demand. If a business has orders it hires to meet those orders and will adjust it's workforce based on the business pipeline. If we take Romney at his word (he being king of the businessmen) a company right now would TURN AWAY BUSINESS because they don't have the workforce to service any additional business/orders rather than hire additional employees. Really?? Really??? You people ACTUALLY believe this?
I call BS. This is political smoke and mirrors. And the masses are too deaf, dumb and blind to see through it. This argument is meritless and Mittens knows it (or should).
Originally posted by Deetermined
Here are the facts. Right now anyone with a net income of $1 million is paying 35% in federal income taxes while the average american is paying between 15% - 25%. Obama wants those with $1 million or more to pay more, although he's never said how much more, which is going to keep people from hiring if they think it's going to affect them greatly.
What we do know is that for owners and shareholders who are paid dividends, their dividend payments are now being taxed at a rate of 44% instead of 35% due to the tax changes tied to Obamacare.
So, let me ask you this. How have you managed to keep your small business going for 10 years? Did you take out business loans? How many employees do you have? I'm guessing your business has never had $1 million in profits, or even $388,000 in net income in order to raise you up to the 35% level of paying taxes?
The highest rate of job creation since WWII occurred during the Kennedy/Johnson administrations when the top tax bracket was 91% and 71% respectively.
The president (Kennedy) finally decided that only a bold domestic program, including tax cuts, would restore his political momentum. Declaring that the absence of recession is not tantamount to economic growth, the president proposed in 1963 to cut income taxes from a range of 20-91% to 14-65% He also proposed a cut in the corporate tax rate from 52% to 47%. Ironically, economic growth expanded in 1963, and Republicans and conservative Democrats in Congress insisted that reducing taxes without corresponding spending cuts was unacceptable. Kennedy disagreed, arguing that “a rising tide lifts all boats” and that strong economic growth would not continue without lower taxes.
The battle over the tax cut and the deficit continued unabated through 1963. The House Ways and Means Committee voted a tax bill out of committee in August and the grateful president reiterated that lowering taxes was the surest path to full employment and lower deficits. Polls showed that over 60% of Americans favored the tax cuts. But, even with the public support of key business leaders like Henry Ford II and David Rockefeller, the Congressional log jam remained unbroken. JFK became increasingly convinced that domestic issues, the economy and civil rights, rather than foreign policy, would prove to be decisive in his 1964 reelection campaign.
Oh, and yes, Obama has said numerous times that he would like to raise the rates back to where they were during the Clinton administration.