Quote:
Originally Posted by KillerK
You mention SMALL BUSINESSES! Those are the ones that if they make an extra $20k a month can hire people.
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Businesses hire people with pre-tax dollars. They are going to hire people based on the needs of the business and they get to deduct the wages and benefits given to that employee.
If business had to pay taxes first and THEN pay their workers with what was leftover, then what you're saying would make sense....but they only pay taxes on what's left over after all expenses, so your example would just increase the business owner's take home pay by 20K/month. It doesn't "encourage" him to hire someone else.
I also love the phrase "encourage someone to be successful". As if there are really people out there going "I could be a millionare, but not with tax rates at 39%....if they drop the top rate to 35%, then I'll go make a million bucks"
