11-05-2008, 05:03 PM
I am a business owner and there is a slight problem with the continued rhetoric about taxes. First of all the corporate rate for taxes on the federal level is not changing and therefore our business taxes will not increase. The increase in taxes that are being spoken of are for personal incomes. That being said, there are some crossovers due what's called an S-Corp designation. When a company is an S-Corp, the income of the business is combined with the personal income of the principals and therefore can show that the individuals make more than the $250,000 that will result in higher taxes. The funny part of this is that most of those individuals end up with a nice fat return at the end of the year and the increase that is being proposed will simply lower the amount of the return. Our company is an S-Corp and the increase in the personal tax will have absolutely no effect on our products, employees, or any other factor that would involve hiring or pricing. I have talked to a number of other business owners that I know and all of them are in the same boat.
As for those in the higher income brackets, Barack Obama carried the majority of people making over $250,000/year and that speaks volumes. Most of the people in the higher tax brackets have no problem with a little extra tax being taken out because as FFWB has stated, the more disposable income in the hands of the middle class, the more consumption/spending will occur. The more consumption/spending that occurs the more the demand for the products that those same companies make will increase. The higher the demand becomes the production follows and job creation is the next step. To give money to companies with little to no demand on their products and hoping that the savings will "trickle down" into job creation is, IMO, a false notion. If those companies have nobody who can afford to buy their products, they have no need for more employees.
Ultimately, however, we will see which theory is best, trickle up or trickle down. After the last 8 years, I'm willing to at least give trickle up a try.
As for those in the higher income brackets, Barack Obama carried the majority of people making over $250,000/year and that speaks volumes. Most of the people in the higher tax brackets have no problem with a little extra tax being taken out because as FFWB has stated, the more disposable income in the hands of the middle class, the more consumption/spending will occur. The more consumption/spending that occurs the more the demand for the products that those same companies make will increase. The higher the demand becomes the production follows and job creation is the next step. To give money to companies with little to no demand on their products and hoping that the savings will "trickle down" into job creation is, IMO, a false notion. If those companies have nobody who can afford to buy their products, they have no need for more employees.
Ultimately, however, we will see which theory is best, trickle up or trickle down. After the last 8 years, I'm willing to at least give trickle up a try.
“I wanna tell Y’all that I ain’t votin for nobody that don’t say freedom enough. Freedom ain’t free, Free Beer. We gotta fight for freedom, Hot wings. Zane you gotta eat freedom fries...Freedom, freedom, freedom, freedom..FREEDOM!"