You are damn right, the first thing you do when you try to pay of your debt is to decrease your income! Math Bitches!
The tax increase is not the answer, They need to cut spending and taxes. Otherwise its not going to work
His profits last year were about $270.000. Under the new tax laws his take home would be about $75.000 a year.
Wouldn't the higher taxes only apply to the portion of his income above $250,000? Let's say the rate IS 72%. That's 72% of everything above 250k. Not the whole $250k.
I'm curious so please help me out if I'm wrong here.
Wouldn't the higher taxes only apply to the portion of his income above $250,000? Let's say the rate IS 72%. That's 72% of everything above 250k. Not the whole $250k.
I'm curious so please help me out if I'm wrong here.
Not to argue the point whether income taxes for those earning over 250k should be raised or not. Since a large portion of those earning 250k+ are probably small business owners, don't you just think they will pass these costs of their goods/services on to the customer. So in effect people of all income brackets will be paying for increased income taxes
Thats exactly what will happen, they will just pass it on to customers
Not only that .. but.. you will be paying even more if you live in a state that has a sales tax
Thats exactly what will happen, they will just pass it on to customersecho4747 said:Not to argue the point whether income taxes for those earning over 250k should be raised or not. Since a large portion of those earning 250k+ are probably small business owners, don't you just think they will pass these costs of their goods/services on to the customer. So in effect people of all income brackets will be paying for increased income taxes
I don't understand why the GOP has made the top end tax rate such an issue. Is that really something they can find support for? It seems to be a weird issue, which would only effect a few percent of voters, to make a stand on. It feels like there's something else behind it. Also are Republicans truly against it on principal or are they just following the party line?
Well, no.
A tax increase on income over $250,000 is not a "higher cost." The business owner's taxable income will remain the same. He can, of course, CHOOSE to increase his charge to customers by an amount that will increase his income to make up the difference. But you're forgetting that there are other, non-rich business owners out there competing with this one. The taxes of these other owners will NOT go up. Presumably, these other owner will keep their charges unchanged. So, if the "rich" business owner tries to increase his fees, he'll lose customers.
What will most likely happen is that that the rich business owner will hold the line on his charges to retain his customers, and he (and not his customers) will pay the increased tax.
Not to argue the point whether income taxes for those earning over 250k should be raised or not. Since a large portion of those earning 250k+ are probably small business owners, don't you just think they will pass these costs of their goods/services on to the customer. So in effect people of all income brackets will be paying for increased income taxes
Ok when Obama eliminates the bush tax cuts and goes after people that make over $250.000 and with the new proposition in California that taxes people that make over $250.000 a year most are at a effective rate of 72% for taxes...
I know a guy that owns a heating and air company. Has 15 people working for him but often puts in 16 hour days to keep costs down. His profits last year were about $270.000. Under the new tax laws his take home would be about $75.000 a year. He just told me. A whole bunch of stuff but honestly some well paid professionals are going to be out of work.
Not to argue the point whether income taxes for those earning over 250k should be raised or not. Since a large portion of those earning 250k+ are probably small business owners, don't you just think they will pass these costs of their goods/services on to the customer. So in effect people of all income brackets will be paying for increased income taxes
Geithner is rumored to be leaving his post. You should throw your name into the ring for the job because you'd bring a level of genius to the position that has been absent for the last four years. Or try for Bernanke's job.Well, no.
A tax increase on income over $250,000 is not a "higher cost." The business owner's taxable income will remain the same. He can, of course, CHOOSE to increase his charge to customers by an amount that will increase his income to make up the difference. But you're forgetting that there are other, non-rich business owners out there competing with this one. The taxes of these other owners will NOT go up. Presumably, these other owner will keep their charges unchanged. So, if the "rich" business owner tries to increase his fees, he'll lose customers.
What will most likely happen is that that the rich business owner will hold the line on his charges to retain his customers, and he (and not his customers) will pay the increased tax.
Whats the problem with just letting all the Bush tax rates expire (not just households over 250k/yr) at the end of the year? it would bring in more revenue that could be used to directly paydown national debt.
Ok when Obama eliminates the bush tax cuts and goes after people that make over $250.000 and with the new proposition in California that taxes people that make over $250.000 a year most are at a effective rate of 72% for taxes...
I know a guy that owns a heating and air company. Has 15 people working for him but often puts in 16 hour days to keep costs down. His profits last year were about $270.000. Under the new tax laws his take home would be about $75.000 a year. He just told me. A whole bunch of stuff but honestly some well paid professionals are going to be out of work.
Not necessarily. They may end up having to actually <gasp> be a little less rich. If a couple businesses in a given field raise their prices for the purpose of obtaining higher profit margins, there's nothing to prevent a competitor from maintaining lower prices while increasing volume to earn a larger total aggregate profit.
Easier said than done. Today's small business market is already working at razor thin margins. In my line of work, our distribution costs have gone up about 5% in the last decade. Higher insurance, workers comp, and logistic costs have shrunk margins even more, all the while margins were being dropped to compensate for an increasingly competitive market.
Combine that with the fact that small business owners typically reach into their pockets to compensate for low profit/loss years to keep the biz rolling and it's not all as rosy as one might think being a "rich" business owner.
That may be true with some small businesses and it's been like that almost forever.
Remember the Koch brothers are legally a "small" business. Should they be getting the "breaks" small businesses are allowed, even though they're only a small business by one definition and not by size?
LOLwuuut???
I don't understand why the GOP has made the top end tax rate such an issue. Is that really something they can find support for? It seems to be a weird issue, which would only effect a few percent of voters, to make a stand on. It feels like there's something else behind it. Also are Republicans truly against it on principal or are they just following the party line?