Posted by MikeT23 on 10/17/2012 11:58:00 AM (view original):
I don't consider it "risk adverse". Hiring people is nice. Keeping them employed is better. Don't know if you've ever had to let someone go. It's not fun. I'd rather not take someone away from a potential career for a 4-6 month job with me so I can make another $250 a week. Perhaps I lack to ruthlessness to have go from small business to big business. And, of course, I don't care to put myself out there for an additional 13k so the goverment can tax me at a higher rate. Maybe if I had more faith in my government to spend wisely and allow me to sustain a certain level of revenue, I'd be more willing to a bigger risk to grow my business.
If you won't hire someone in order to net an additional $13k, then there probably isn't a magic tax rate that will make you comfortable hiring that person. Even if your tax rate is zero, you're still only looking at an increase of $384 a week.
But, if demand for your product was robust and hiring that employee would increase your gross revenue by $500,000, I'm sure you'd do it, even if the increase to your personal income was taxed at 39% instead of 35%.