Quote:
Originally Posted by BlackCrayon
even if he had no taxes to pay, why would someone hire more people than they need? definitely too many people slack off at a job but what incentive is there really to do a good job? the average shitbag will make the same wage if he works hard or slacks off and at the end of the day the cost of living is so out of wack with wages that he barely scrapes by anyways.
|
lower taxes make new successful ventures more profitable, so an entrepreneur is more likely to invest in that venture and so create more jobs...
so lets say for example to simplify things there is either 0% tax or 50% tax and
when new venture is successful entrepreneur will double his money, and chance of success is 50%
(completely made up numbers just to illustrate a point)
so if he invests lets say $100k, when tax rate is 0%, he has 50% chance of losing $100k, and 50% chance of doubling his money, a perhaps reasonable investment so entrepreneur might proceed and so more jobs would be created...
when tax rate is 50%, he has 50% chance of losing it all, and 50% chance of making only 50k, which is a pretty shitty deal, he invests 100k, but can only make 50k when he is successful... so it's unlikely he will proceed and create jobs under the 50% tax rate plan...