Question by Jbushkey: Will a small business owner really cut jobs because his taxes go up a few thousand dollars?
All the greedy rich folks are trying to get us to believe that if taxes go up a couple of thousand dollars that there will be job cuts. Since it costs ten of thousands of dollars per employee it doesn’t make sense that that small tax increase will force them to cut workers.
What would more likely happen is as the middle class gets stronger there will be more money to spend and even with higher taxes small business owners will have more to take home.
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Answer by nickname
i really dont know what to believe
lot of misinformation and paranoia being spread
What do you think? Answer below!
They care only for themselves
McCain was quite offensive, in my opinion. – please Check out my question:
http://answers.yahoo.com/question/index;_ylt=AuTsK9slnJWSoAvgCSr6dSXsy6IX;_ylv=3?qid=20081015223621AAe6zhN
OBAMA/BIDEN 2008
No, but they will cut jobs as the economy gets worst. And it will.
This few thousand dollars will be replaced with free healthcare. It is beneficial. And Joan, newsflash, they are cutting jobs in the current reward the greedy system
As Obama explained, most small businesses don’t make more than $ 250,000 annually in net profits. Obama’s tax plan will do more to help them than anything McCain has proposed. For instance, he has proposed a $ 3,000 tax credit for small businesses for each new job they create.
And I agree with you. We’ve had trickle down economics, and we know they don’t work.
Businesses already lay off as many employees as possible to maximize profits. If you tax those profits more it doesn’t change the fact that they need the workers. Firing needed workers will reduce their production and because of that their profits, so it makes no sense that raising taxes will cause them to cut jobs.
They told us this in 1992.
Instead we saw the longest economic expansion in history, 23 million jobs created, growing median wages and falling poverty.
You would think they would get tired of being wrong.
Taxes will not rise for small business owners. You must have a NET income of over $ 250,000.00 before taxes increase.
The problem is that they don’t know how the tax system works…so in their minds it isn’t a few thousand dollars.
When they hear Obama is going to raise the rates on 250k and over from 33% to 36%…they take an example like 350k and apply the extra 3% to it to get 10.5k.
The correct way to do it is to take the amount OVER 250k…which in this case is 100k…then take the extra 3% to get 3k.
So for someone making 350k…they have to pay an exta $ 3,000 a year. That is about 2.5 days of work for someone making 350k.
But you won’t get that through their skull.
Yes as revenue goes down then you have to cut expenses. In most businesses; small and large, labor is one of the biggest expenses.
I have been there myself both as a small business owner and a manager at several multi national corporations.
Any company regardless of its size exists soley to create profit; when those profits go down then it is typically the employees that suffer the most.
This government is to corrupt to entrust with additional tax money.
For over 20 years we trusted that social security tax be taken out of each and every check and that this money would be safely invested and when we needed it we could apply for social security. Bush used social security to pay for Iraq.
The profits on big business have not been taxed or if taxed only at less than 1%.
Business have shown appreciation by taking jobs to other countries and putting the profits in secret off shore banks
No they must make do with what they have!!
Most go under because they can’t compete or have cash-flow issues! Very few small businesses over-pay their employees, and most have them work part-time so they don’t have to pay benefits.
No one has addressed the new wave of doing business. Each person doesn’t work for the company. Newspapers are notorious for this practice, as is the building industry, among others! They contract out! The workers pay their own taxes, cost of doing business and anything else. That is the new wave of business punking their employees!
Businesses biggest issue is that they want the employee to make all the concessions or not have a job, or like GE Irons in CA, they moved to Mexico. Not because they were not making money. It was because they could hire Mexicans who lived in slums with no running water and no toilet facilities, who also did not have child labor laws!
Maybe their are some reputable businesses out there. I haven’t seen one and I have been around a long time!
obama= sets the bar too low
you get jobs from poor people?
heck i hear homeless bosses pay well
Absolutely. Do you not comprehend the concept of margin? You make incremental increases in expenses – like Barry’s additional taxes – you have to pay for it someway. Layoffs are the easiest and most economical way to do that.
I love it when ignorant people insist on cutting their own throats.
Just for fun, google Hoover’s 1932 tax hike.
It’s obvious you don’t have a small business. It’s very hard to keep a small business going at any time, let alone when you are being taxed even more. $ 250k a year is not wealthy by any means, and you have to keep in mind all the expenses already being paid out by the small business owner–employees pay, travel, advertising, etc. The taxes already being paid by a small business owner are already astronomical, and that is before you figure in Obama’s tax hike. ***
Higher taxes dont produce anything, small businesses will get hit hard and that means people are out of work, it does zippo for the economy.
No, unless they really have to and usually small businesses only hire a few people they really need so usually they’d think twice before firing someone…also
My family owns a small business and we don’t even come close to 200,000, if you make more than 250,000 then you’re not a small business. Seriously, my friend’s dad makes more than my family and he’s hired by a good company, but he also doesn’t come close to 250,000. This is why misinformation is so dangerous, people think small business like a mom and pop store makes that much but they don’t, usually those fortune 500 or those that own chains are the ones making that much.
If you look at it now without even the taxes taken place yet, you can see that those big companies are laying off people anyway. And small businesses are suffering anyway with the high prices in gas, food, rent while the economy is falling.
If you think about it, those big companies could keep their employees by cutting back a lil on wages or cutting back on their own wages. It surprises me that those big CEOs gets paid so much and give out bonuses that many people has to work two years for or more.
Because they want to make money and to do that, that means to cut out the cost of labor. Greed is what caused this economic crisis which is funny because in the end, their own employees are their own customers at times.