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View Diary: WHY "TAXING JOB CREATORS" DOESN'T STOP THEM FROM HIRING PEOPLE (12 comments)

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  •  Basically, employee salaries are pre-tax (7+ / 0-)

    So the higher the tax rate, the more likely the owner will keep the money in the company and expand by hiring (entirely deductible), purchasing equipment (sec 179, accelerated depreciation and standard depreciation make it also tax deductible on a schedule), or expanding into larger facilities and  new markets (leases are entirely deductible).

    The lower the tax rate, the more likely the owner is to cash out. Its not a theory, it is what has been happening over the last decade.

    These capitalists generally act harmoniously and in concert to fleece the people, and now that they have got into a quarrel with themselves, we are called upon to appropriate the people's money to settle the quarrel. Abraham Lincoln

    by Nailbanger on Sat Oct 27, 2012 at 03:41:35 PM PDT

    •  Spot on (2+ / 0-)
      Recommended by:
      puzzled, Nailbanger

      Except that it's been closer to 3 decades, since top tax rates dropped from 70% to under 40% under Reagan. The lower the top tax rate, the higher the inquality.

    •  DING DING DING =) (1+ / 0-)
      Recommended by:
      puzzled

      You've explained what the GOP has spent the last 15 years trying to hide. The evil genius of Luntz has created the saintly job creator caste, when in reality, what you have said is the truth. It's about greed, nothing less. I think the more logical argument is that higher tax rates motivate businesses to put more back into the business, which in the end is better for the economy. (In the end it would mean more long-term profits for the business, too.) True tax reform would utilize the tax code to make this sort of investment the only thing that pays.

      "Mitt Romney isn't a vulture capitalist: vultures only eat things that are dead." -S. Colbert

      by newinfluence on Sat Oct 27, 2012 at 08:30:32 PM PDT

      [ Parent ]

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