My one "tax the rich" experience:

[bhikkhu]

In the early 90's I managed a small tire and auto repair shop in Oregon. The owner manned the front desk every day, was very conservative and frugal, and took a respectable but fixed draw every month. In the first full year I managed it we did very well, and towards the end of December we sat down with the bookkeeper to talk about the options...

There was $20,000 in the bank and our bookkeeper explained that, while all the taxes had been paid as we went on the draws and wages and so forth, the money left over was going to be taxed as a lump of profit at a pretty high rate - basically, we either had to spend the money within weeks or give a good chunk to the government.

What the owner decided, after taking a good look at the business to see that things were pretty sound and secure, was to give a small Christmas bonus to each employee, and then to spend the rest on new equipment. Over the next week I replaced two old machines with nice modern ones, and stocked up on a bunch of essentials for the shop.

...now, when I think of "taxing the job creators", this is what I think of - if the tax rate then was low, that whole conversation about what to do with the $20k wouldn't have happened; it would have sat in the bank. Repeat this scenario thousands of times over thousands of small businesses and you have the recipe for stagnation on the one hand, and moving forward on the other, with modernization and improvement and the best foot forward for long-term economic health.

[EC]

1. We've been saying this for years.

If profit is taxed, they'll reinvest it instead of hogging it.

[bhikkhu]

2. ...which is probably why economic growth was so high in the 60's and 70's

...when taxes were so much higher. It would hardly be worth going back over, but the RW has been so strident and consistent over the years in saying the opposite ("low taxes create economic growth&quot that its almost an accepted fact.

on edit - I can imagine the conversation I had with the owner being transposed back to the Eisenhower era - I think back then there would have been no doubt or question that profits would be directed back into improving businesses and optimizing the workforce (better training and pay).

[Autumn Colors]

5. He should propose using REAGAN'S tax levels

What a dilemma for republicans to have to start publicly refusing to go along with their idol's very own tax levels.

Make them argue against it and at the same time tarnish their image of St. Ronnie....

[bhikkhu]

7. I've suggested going to the tax rates in effect when historic GDP growth was highest

...which the unsuspecting republican might agree to as a reasonable suggestion, until he looks at what the rates would have to be!

The best and most consistent growth was when the highest tax rates were 90%, and the likely reason was that, rather than actually pay that rate, profits were plowed back into company infrastructure and payrolls.

[RepublicansRZombies]

3. that is exactly how it works! Thank you!

This is so basic, so obvious really....and history proves this to be the case.

We had the highest tax rates and the highest economic growth from the 40s to the 70s.


Why can we have this very basic concept discussed on the 'liberal' media?

Why do we accept such bullshit on our public airwaves?

We need to shut down the morons, and allow the adults to have a real conversation based on facts and truth.

[RoccoR5955]

4. Exactly!

When profits are taxed, they hire more people, buy more equipment, give the money to employees, and spread that taxable income around, so that there isn't so much that has to be paid to Uncle Sam.
What they are talking about today is simply greed. They hoard the tax cuts, and don't spend it on anything.

[RepublicansRZombies]

6. kick

:kick:

[Eerriicc36]

8. We the people

Are much better qualified to determine how a small business owner manages his money

[SickOfTheOnePct]

9. WTF? n/t

[bhikkhu]

10. Policies that lead to growth are better than policies that lead to stagnation

no?

A few percentage points difference in tax rates are far from government dictating decisions, and in either case a small business owner makes the final decisions based on his own best interests. There is a "right size" for taxation that balances the need for competent government services, and that allows individuals sufficient room to benefit from their own labors.

In the example given, it so happens that the tax rates inclined the owner toward a decision that was very much in the his own best interests, as well as being in the interests of the business itself and the employees there.