To: The Louiswu
A personal example: I own a small manufacturing business. As with all business, the cost of employing workers is the highest single category of my "cost of doing business." Taxes are a big component of the payroll costs. When the state or federal government raise taxes, that adds to my "cost of doing business" and my choices are to raise prices, reduce costs elsewhere, or lay off workers.
Since most businesses (mine included) operate on very low margins and in highly competitive industries, there is very little opportunity to raise prices, or to cut costs other than payroll costs. When taxes are raised, therefore, I end up laying off workers or not hiring the new employees I had hoped to hire. Lowering taxes reduces the cost of doing business and encourages business expansion. Raising taxes increases the cost of doing business and discourages business expansion.
By the way, businesses do not pay taxes; we collect taxes for the government and pass the increased cost on to the consumer in the form of higher prices. When that is no longer possible, business stops altogether.
16 posted on
11/25/2009 6:06:34 AM PST by
mcswan
To: mcswan
Sing it brother, from the rooftops.
I would eliminate business income tax entirely, because businesses do NOT pay it, the consumer does. It is a hidden tax on thconsumer, labeled as a way to ‘tax business’.
22 posted on
11/25/2009 8:11:59 AM PST by
RoadGumby
(Ask me about Ducky)
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