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moy23
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Posted by MikeT23 on 10/17/2012 1:53:00 PM (view original):
Since it's apparent the "tax rate doesn't matter" crowd will never believe it matters, I won't bother explaining.

But every business should weigh the pros/cons of expansion/increase in revenue/expense.   Part of the calculation is tax rate on current/future profit.    Like it or not, it's just a fact. 
While many of the small business owners and corporate ceos I work with might not hire immediately with lowered tax rates they have certainly laid off or reduced hours because of higher taxes. That's already happened and is still happening.

Low tax rates creates jobs because it incentivises new companies and foreign companies to invest. Like I mentioned earlier... incentivise Honda to build a manufacturing plant in the us and now youve created 8000 jobs. Now entice more than just Honda and you have job creation from lower taxes.
10/17/2012 3:25 PM
jvford
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Companies don't lay off employees because their tax rate is higher.  How does that make any sense?  "Let me see....taxes went up....I'll show the government, I'll lay off people and make less money so I can pay less in taxes."  Companies lay people off to cut expenses that don't necessarily reduce revenues....the extra employees they have because of reduced demand.  

Lower income taxes don't incentivise companies to invest, local tax credits and other incentives do.  You're mixing up your taxes and incentives.
10/17/2012 3:57 PM
mchalesarmy
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With all due respect it sounds like you guys are talking book theory and not real life experience.

Are you seriously implying that the US having the highest corporate tax rate in the world is NOT a deterrent for some business expansion here?

That companies don't choose to expand in other countries with lower rates as opposed to expanding here?

That essentially a country's corporate tax rate is a non factor?

10/17/2012 4:16 PM
bad_luck
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The corporate tax rate matters, but companies that are already established in the US and who need US workers aren't basing their hiring/not hiring decisions on the corporate tax rate.
10/17/2012 4:25 PM
jvford
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No, the discussion has been about small businesses with pass through income tax rates.  Some people have been trying to claim that this income tax on profits has some bearing on whether or not a small business will hire people to meet additional demand.  Moy expanded it something about Honda, but my response really ignored that and was referring to small businesses within the country opening up another location/plant/factory/etc within the US.
10/17/2012 4:27 PM
jvford
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Posted by bad_luck on 10/17/2012 4:25:00 PM (view original):
The corporate tax rate matters, but companies that are already established in the US and who need US workers aren't basing their hiring/not hiring decisions on the corporate tax rate.
This is the shorter version of mine.
10/17/2012 4:28 PM
MikeT23
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No, they're basing it on the pros/cons of expansion.   Tax rate is part of the equation.   It's just a fact. 

Why is that so ******* hard to understand?     Bottom line.   Bottom line.   Bottom line.

****.

10/17/2012 4:42 PM
jvford
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en·tre·pre·neur

  [ahn-truh-pruh-nur, -noor; Fr. ahn-truh-pruh-nœr]  Show IPA noun, plural en·tre·pre·neurs  [-nurz, -noorz; Fr. -nœr]  Show IPA, verb
noun

1. a person who manages and organizes any enterprise, especially a business, usually with considerable initiative and risk
2. an employer of productive labor
3. not MikeT
 
10/17/2012 4:52 PM
MikeT23
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Do you run your own business or does someone tell you what to do?

OK, thanks for playing.   Now get off this site before your boss catches you ******* off.
10/17/2012 4:53 PM
bad_luck
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If hiring someone is a smart business decision when your personal income tax rate on dollars earned over $390,000 is 35%, hiring someone is also a smart decision when your personal income tax rate on dollars earned over $390,000 is 38%.
10/17/2012 4:56 PM
MikeT23
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Of course, this is typical NE/WC liberals telling everyone how they should spend their money and why you should be happy to give the gov't more while you take the risks of expansion.   Quite the shocker.
10/17/2012 4:58 PM
MikeT23
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BL, it's not just numbers on a spreadsheet.  I'm sure you don't get that but that's not all it is.
10/17/2012 4:59 PM
jvford
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Posted by MikeT23 on 10/17/2012 4:53:00 PM (view original):
Do you run your own business or does someone tell you what to do?

OK, thanks for playing.   Now get off this site before your boss catches you ******* off.
I'm the CFO and part owner.

It's clear that you've survived in your business despite yourself.  Because you clearly have no grasp of business, economic, and financial concepts.

10/17/2012 4:59 PM
moy23
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Posted by bad_luck on 10/17/2012 4:25:00 PM (view original):
The corporate tax rate matters, but companies that are already established in the US and who need US workers aren't basing their hiring/not hiring decisions on the corporate tax rate.
No they are basing that decision on employee benefit costs..... enter obamacare.
10/17/2012 4:59 PM
MikeT23
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Posted by jvford on 10/17/2012 4:59:00 PM (view original):
Posted by MikeT23 on 10/17/2012 4:53:00 PM (view original):
Do you run your own business or does someone tell you what to do?

OK, thanks for playing.   Now get off this site before your boss catches you ******* off.
I'm the CFO and part owner.

It's clear that you've survived in your business despite yourself.  Because you clearly have no grasp of business, economic, and financial concepts.

I'll assume the other owner(s) are the brains of the outfit. 
10/17/2012 5:01 PM
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