Makes no sense to me. You are biting the hand that feeds you.
Yeah, this guy is a succesful businessman. What a dumb ass, he “grows” his business not on demand of his product but on how much money he has “laying around”?
I believe in a sub chapter S corporation the corporate profits are taxed as individual income weather you take them out or not.
This is the stupidest argument I’ve ever read. That money is taxed regardles of whether you pay yourself a salary. On top of that, a rational business owner will judge a business venture on the net present value of expected future cash flows. Those future cash flows are always lower when taxes are higher.
Moreover, basically what he’s saying is, “If taxes are higher, I’m not going to pay myself out as much from the business. Therefore, it will make my business more valuable.” The problem with this is that the real thinking is, “If taxes are higher, I can’t pay myself out as much from the business. Therefore, the net present value of cash flows to me is less, and as such it is less rewarding to expand my business.”
The fallacy of this argument hits home when you do an argumentum ad absurdum by assuming 100% tax rates.
Guy has obviously never created a single job or met a payroll or taken out a business loan in his entire life.
it only makes sense if your a DC insider higher taxes only helps people in Washington.....and their co conspirators!
Posts Like this just make me want to “Go Galt” and encourage the dumbasses to raise taxes on anyone making over 200K to 100% and then get the hell out of the country and let it all burn, maybe the laws of the copybook headings will rear their ugly heads and purge such dumbness from the minds of such idiots...
At some point, Going Galt will BE THE ONLY OPTION, the big question is WHEN?
At what point do the producers decide that the leeches need to start starving?
It’s coming out of Facebook.
Of course it makes no sense.
One more point. Profits are taxed in the year they are made, but major captial investments must be deducted over several years. So if you invest in new equipment for your new employees, you have to pay out of pocket using after tax dollars, and only get the deduction in future years-assuming you have profits to deduct.
Indiana has some really dumbass libs.
This is a convoluted way to justify voting for Obama. It totally goes against reality.
That is one of the most idiotic things I’ve read....Evuh.
he is obviously someone who signs the back of a paycheck.
An observation, small business is like the middle class. Without large engine businesses and large scale entrepreneurs, there is much less, or smaller scale opportunity to grow. Make it difficult for the larger businesses/entrepreneurs to forge a path through high taxes, silly useless regulations (with the force of law), and a hostile environment in which to conduct business, rather than expand to fill the volume, they will run closer to the bone.
Same thing goes for the middle class/small business. If it gets harder to expand due to artificial constraints (gov intervention) vs. market forces, of course it is going to be a closer to the bone operation.
calling it the middle class seems incorrect. In the real vice imagined-by-the-left class warfare, there are only two real classes, producers and consumers (makers and takers). The government taxes one to support the other.
.02, YMMV
Undecided voter?
Taking money out of an S corporation is not usually a taxable event. Increasing taxes may encourage S corporation stock holders to take more out of their corporations to pay the taxes.
Jeb Banner
CEO/Co-Founder
SmallBox
a web design and marketing firm statrted in 2006
He has a web site http://www.jebbanner.com/
Some of the Article Titles
Raising Taxes To Create Jobs
The Case For Redistribution Of Wealth
Betting On Mitt Romney
Not worth the visit really. He is a Liberal
Higher taxes are passed on to the consumer which means higher prices which means less buying which means less business which means layoffs.
Increases in production depends on increases in productive expenditure which depends on increases in investment which depends on both increases in savings and decreases in consumption. Savings is increased and consumption is decreased when tax rates are decreased and time preference (compelling present) is decreased.