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Originally Posted by JP-pornshooter
1. time shifting monies or deferring taxes is a decent way of stimulating the economy, it creates more available income. Available income (also for high income self employed people) is more likely to be used for like consumer goods, cars, televisions, boats and hookers.
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True dat
Quote:
Originally Posted by JP-pornshooter
2. Now can anyone explain to me how cutting capital gains taxes or cutting income taxes for wealthy small business owners "creates jobs"?
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a. Define 'wealthy'. A small business owner making 120,000.00 a year is not 'wealthy'. Well off.. maybe. But take geography into the equation as well. New York, L.A., Seattle, San Diego. Not remotely close. Middle American, $120k is a nice living.
b. Capital gains influences where I invest. Short or long term, and the money. Do I invest in my business, or do I invest in the stock market while I could maybe make some coin while stocks are down. Same as people cashing out their 401K's at this time have to consider the capital gains, and do they spend that money paying down debt, or buying new shit.
I know a handful of people in my personal life pondering this very decision right no on their 401k, and other shit. Having to pay capital gains, and penalties.
Quote:
Originally Posted by JP-pornshooter
It creates more incentive for the small business owner to grow his business since he feels he could get a better return than putting the money in the mattress
cap gains: it creates more opportunity to invest in real estate (which is really where we need stimuli)(again a possibility to avoid paying taxes on investment is a big plus)
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As a small business owner, where I take my profits, and where I invest it will be effected by the other mitigating factors. Stockings, bond, real estate, etc. Especially if I am going to tie up a chunk of money for any period of time.