Democrats say higher personal income tax means more Jobs ?

[missouricitizen2007]

Can anyone refute or debunk this Liberal claim that a higher personal income tax means more Jobs because the businesses owners will invest to avoid higher income taxes can anyone disprove this ?

What Conservatives Won’t Tell You: Higher Taxes Equal Reinvestment And Jobs

By Ray Medeiros

What the conservatives do not know or don’t reveal is, higher taxes make businesses re-invest most of their profits into the corporation.

This is one of the reasons President Clinton had a booming economy. He raised taxes on the wealthy. Rather than pay the higher tax rate by extracting profits for personal use and having it sit on the sidelines, they re-invested it, creating a chain reaction of jobs.

What we are seeing today is lower taxes leading to owners extracting money rather than reinvesting it. The cash sits on the sidelines in bank accounts, or in their wallets. So let’s raise taxes, and “force” this idle cash back into businesses for reinvestment and create the jobs this country needs.

http://www.politicususa.com/en/higher-taxes-jobs

[Cutlerzzz]

You're a medicore troll. How many accounts is this now?

[TonySutton]

so businesses hire more people so they can make more products that no one wants. how does this help the company?

[libertyjam]

Higher personal taxes generally will not effect how a business or its owners reinvest profits in a company, if the business model and the demand is sufficient the business will invest in growth. Companies can save and build cash reserves too, and when demand is weak that is what they do if they can. A business owner would be pretty stupid to hire people just because his personal income taxes went up.

[Bordillo]

Higher personal taxes generally will not effect how a business or its owners reinvest profits in a company, if the business model and the demand is sufficient the business will invest in growth. Companies can save and build cash reserves too, and when demand is weak that is what they do if they can. A business owner would be pretty stupid to hire people just because his personal income taxes went up.

lets say
Y= Return on investment
I= Investment

if Y is a function of I and raising taxes decreases Y, how can you argue that I increases?

[wannaberocker]

This claim has already been refuted in the Economics section of the forum.

[Ronulus]

Why would the businesses hire more employees when they have to match what the employee pays in? If that rate goes up they are not going to want to hire more people. Also going to have people getting less money and being able to buy less items, which hurts business.

[DamianTV]

If people have less money to spend at local businesses, where are those supposed jobs going to come from? The Government? Ha! They just stuff their wallets, put the Nation as a whole even further into debt, usually for their own selfish endeavours, and we end up with even LESS jobs than we had before.

If they really wanted to stimulate the economy, they'd cut their spending then lower our taxes, and when the people have more, they spend more, which is what creates jobs. Jobs do NOT come from the Government. They come from a Demand of needing people to work for companies because the companies can afford to hire more people.

[sevin]

What the conservatives do not know or don’t reveal is, higher taxes make businesses re-invest most of their profits into the corporation. Let’s take Congressman Flemming for example, the 400K dollars he has after feeding his family. If he buys another building to expand, or buys a new stove to cook his sandwiches, that 400k is no longer taxable.

Sometimes companies should not expand but instead save up money so they can survive harder economic times. If a company keeps spending all their extra money on expansion, then when times get worse they're more likely to go under and everyone loses their job. The people and companies in this country do not have nearly enough savings to whether the tough times, so pushing them to spend more only makes things worse.

[acptulsa]

And how many family-owned businesses of the type you described have survived the recent corporatism? Seven? Eight? And how many of those don't know about the tax shelters that short circuit this? Two? Three? And how many employees who are thinking of starting their own productive businesses won't be able to afford it if their taxes are hiked? Half? Two thirds? And government will take this money out of the private sector and do what unproductive thing with it?

[TonySutton]

Most of our politicians do not listen. They have an agenda and their words are measured to push the agenda. Just like they do not listen to the terrorist's reasons for attacking America, the politicians do not listen to the CEOs who have been saying they are not hiring because there is so much uncertainty coming out of Washington. I guarantee the same uncertainty that is causing the CEOs of large companies to hesitate is also causing small business owners to hesitate.

[oyarde]

Somehow this reminds me of Pelosi saying we have to pass the bill to see what is in it .....

[libertyjam]

lets say
Y= Return on investment
I= Investment

if Y is a function of I and raising taxes decreases Y, how can you argue that I increases?

I guess you are agreeing