I started a business two years ago and have since created 35 jobs. I expect to add 35-50 jobs over the next year.
Why do I get to pay ZERO in federal income taxes? My business is in start-up mode. It is losing money as it builds (I lost money on 2009, 2010 and the first half of this year. It is just starting to show a profit). Under the current tax code, I get to fully recover my losses before I pay a dime in taxes. Changing the income tax rate is completely irrelevant to me. I am doing the business because I see a demand, not because of some tax policy. In fact, the only tax policy that is really helpful to me is cuts in payroll taxes (again, not a motivator of investment, but it helps my business).
This notion that people in the highest tax brackets are the job creators is absurdly misguided. Jobs are created by people that make the investment... and the initial consequence of the investment is to first lose money before the profit is made. Those that make the investment are not worried about the tax consequence of the investment, they are worried about the business consequence.
People that start businesses from scratch do not pay taxes until those businesses not only make money, but recover all of the losses incurred during the start-up years. These people are "poor" from a income perspective. They are at the low end of the taxpayer spectrum. We are the 47% that pay no federal income taxes. Those that look at us as deadbeats, well some of us are actually laying out the cash to do more than our part to drive this economy forward. Some of us are doing more for job creation and GDP growth than those in the highest brackets..
Yes, raise the taxes on the highest brackets. They can are the one's most able to contribute at the least pain.
Last edited by upsideguy; 09-24-11 at 03:18 PM.
I don't want to see religious bigotry in any form. It would disturb me if there was wedding between the religious fundamentalists and political right. The hard right has no interest in religion except to manipulate it. ~ Billy Graham in Parade magazine February 1, 1981.
Liberals - Punish the Successful, Reward the Unsuccessful
Liberals - Tax, Borrow, Spend, and Give Free Stuff
Obama's legacy - National Debt / Credit Downgrade / Obamacare Failure / Economic Failure / Foreign Policy Failure / Liar of the Year Award / The Rise of ISIS
And you can call him a marxist/socialist/communist if you so desire as well.
Only problem with that is it's factually incorrect. And most of the time people who say that kind of thing are either being deliberately untruthful or are extremely ignorant as to the actual meanings of those terms.