mikejohnson2006
08-24-2011, 08:07 PM
I have talked to and have heard Democrats say that higher taxes means that the Rich/Wealthy will be forced or at least cause them to keep profits inside their businesseses and reinvest and create Jobs because they don't want to pay higher taxes I have heard Thom Hartmann say this as well can anyone please refute and or debunk this if there is not any truth in this or if this is just a half truth thank you ?
Thom Hartmann: But it seemed, just common sense. I remember back in the ‘80s, I owned a business, International Wholesale Travel in Atlanta, Georgia. That business has, since we sold it done over 200 billion dollars in business. And there was a year when we were doing really, really well and I could either write a big check to myself or not. And I decided not to, because I didn’t want to pay the increased taxes. I put it back into the business. How can cutting taxes on rich people, on high income people, do anything other than encourage them to take the money out of their companies, out of their businesses, and buy fancy paintings or yachts or put it in Swiss bank accounts? How conceivably could that help the economy?
http://www.thomhartmann.com/blog/2010/10/transcript-thom-hartmann-asks-curtis-dubay-keeping-bush-tax-cuts-will-create-jobsreally
If we didn't really need the money, that was an incentive to keep it in the company and to find ways to spend it that took it out of the taxable profit column but increased the value of the company.
High taxes create an incentive to reinvest profits into long-term growth.
With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest.
http://www.alternet.org/economy/106979/
This is my first debate, so please be gentle with me Initially, you may say, "Wait, you mean 'lower' rates, right?". No, it's my argument that corporations view periods with historically low tax rates as opportune times to take their profits, as opposed to reinvesting them. One of the main goals of a CEO is to pay as little corporate tax as possible. Therefore, when corporate tax rates are historically high, the CEO is much more motivated (encouraged) to reinvest in their company, rather than pay all of that "high" income tax on any profits.
http://www.debate.org/debates/Higher-corporate-tax-rates-encourage-business-investment./1/
Thom Hartmann: But it seemed, just common sense. I remember back in the ‘80s, I owned a business, International Wholesale Travel in Atlanta, Georgia. That business has, since we sold it done over 200 billion dollars in business. And there was a year when we were doing really, really well and I could either write a big check to myself or not. And I decided not to, because I didn’t want to pay the increased taxes. I put it back into the business. How can cutting taxes on rich people, on high income people, do anything other than encourage them to take the money out of their companies, out of their businesses, and buy fancy paintings or yachts or put it in Swiss bank accounts? How conceivably could that help the economy?
http://www.thomhartmann.com/blog/2010/10/transcript-thom-hartmann-asks-curtis-dubay-keeping-bush-tax-cuts-will-create-jobsreally
If we didn't really need the money, that was an incentive to keep it in the company and to find ways to spend it that took it out of the taxable profit column but increased the value of the company.
High taxes create an incentive to reinvest profits into long-term growth.
With high taxes, the only way to retain the bulk of the wealth created by a business is by reinvesting it in the business -- in plants, equipment, staff, research and development, new products and all the rest.
http://www.alternet.org/economy/106979/
This is my first debate, so please be gentle with me Initially, you may say, "Wait, you mean 'lower' rates, right?". No, it's my argument that corporations view periods with historically low tax rates as opportune times to take their profits, as opposed to reinvesting them. One of the main goals of a CEO is to pay as little corporate tax as possible. Therefore, when corporate tax rates are historically high, the CEO is much more motivated (encouraged) to reinvest in their company, rather than pay all of that "high" income tax on any profits.
http://www.debate.org/debates/Higher-corporate-tax-rates-encourage-business-investment./1/