[PeterPrinciple]

False: As a business owner I cannot spend more of what I don’t have so I can’t “stimulate” the economy.
As soon as taxes go up my costs increase, cash flow shrinks and so does profit margin which minimizes investment.

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So if you are not making anymoney you don’t have a tax problem do you? Doesn’t matter how high taxes go.

If you are making money you will do tax planning to reduce your taxes. Not wise but what is done.

What do you think the 179 expensing election is about? Biden raises taxes, business will spend more to reduce taxes. What world do you live in?

[Pendergast]

You’ve obviously never invested in a business. The only way what you are saying works is if the business owner raises prices to keep the cash flow going in order to invest in more equipment, if that is even necessary. In most cases, unless the assets are needed, they will raise prices in order to pay the additional tax. Smart business owners do not spend $20,000 on a vehicle just to save 3K or 4K in taxes.

Raising taxes does NOT stimulate spending in the real world unless you are talking about government spending.

[frogjerk]

I am not just going to buy equipment to get a Sec 179 deduction. It doesn’t make sense. I will raise prices to offset the higher taxes immediately.