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.
I didn’t say it was wise, I said it because it is done. I spent 30 years working with small small business and it was always tax planning. In a sole proprietorship you are soon in a 45% tax bracket with the se tax and state tax. You can drive a $66,000 pickup or have $33,000 in the bank. If cash flow allows many choose the $66,000 pickup.
There is a psychology to business, you can study the textbooks all you want but sometimes you better get in the real world. Do you really think anyone will pay a 90% tax? Hell no, they spend money unwisely in the business.
I have actually been a business owner, very successfully, so see your patting on the back for your own amusement.
Just because “It is done” does NOT mean that higher taxes will stimulate the economy. The fact that business either are drained of cash flow, or have to raise prices, defeat that democrat argument. Raising taxes has never stimulated the private sector, only the government sector. And an improved economy does not come from the government.
In your scenario very few would select a 66K truck and deplete their cash on hand when they have 100% risk in the business.
If you were advising business owners to make that choice I pray they didn’t listen to you.
Your little crack about textbooks is ludicrous. I’ve been doing this for 50 years. I live in the real world. You live in the democrat utopia of believing high taxes are good for the economy,
Good day.