Why tax cuts don't create business growth.

Discussion in 'Political Opinions & Beliefs' started by ImNotOliver, Jan 1, 2018.

  1. ImNotOliver

    ImNotOliver Well-Known Member

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    Unlike individual citizens, whose income is taxed, businesses are taxed on their profit, which is income minus expenses.

    With a higer tax rate there is greater incentive to reinvest in ones business as to do so is not taxed. The totality of the cost of my business assets has been writen off as tax deductions.

    Why do you think guitar players always have so many guitars. They are tax deductable.

    Cutting taxes just puts more money in my pocket with no increase in productivity.

    By the way, workers are also tax deductable.
     
    Last edited: Jan 1, 2018
  2. Vet1966

    Vet1966 Well-Known Member Past Donor

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    How many guitars can you buy? Besides, in a pass through you can immediately deduct expenses for such purchases where in a corp, such purchases tend to get deferred and amortized over a 5 or 10 year period - if the capital expenditure can not be immediately written off, the corp is risking a drop in revenue - which means an unhappy group of stock owners.
    As a pass through, unless you put the extra $ you get under the mattress, you will spend it on goods and services - if millions of people who get the tax cuts put those extra dollars back into the economy, it will be subject to state and federal taxes, the government revenue grows and minimizes the deficit.
     
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  3. ButterBalls

    ButterBalls Well-Known Member

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    The leftist never look past their enemy "The Rich Guy" they don't ever consider the "Little guys" holding a good amount of company stocks and in many cases help fill the gaps of those unexpected expenditures after retirement..
     
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  4. Vet1966

    Vet1966 Well-Known Member Past Donor

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    Amen to that little considered fact! Thank you Mr 401K and Mr IRA
     
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  5. BleedingHeadKen

    BleedingHeadKen Well-Known Member Past Donor

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    All those retirement plans. Pension funds. Insurance funds. All benefit from more profitable business. Usually the "little guys."
     
  6. Robert

    Robert Well-Known Member Past Donor

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    In your case, I hope and pray they raise your taxes, given you enjoy paying taxes so much.
     
  7. Kode

    Kode Well-Known Member

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    And that is precisely why a higher tax on higher incomes is so important and beneficial to everyone. The fact is that when there's a top personal income tax bracket of 60% or 80% it causes more money to be spent/invested in workers' incomes, workers' benefits, capital expenditures when it increases profitability, and charitable giving. But when the top bracket is low as it is now, those with the ability to pay themselves a higher income take advantage of the low tax to direct more of that money to themselves, and income and wealth disparity increase while wages remain flat.
     
  8. BleedingHeadKen

    BleedingHeadKen Well-Known Member Past Donor

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    Uh no. What in my comment gave you that impression?

    For someone who doesn't like to be attacked for their opinion alone, you don't seem to mind engaging in the same tactics.
     
  9. ButterBalls

    ButterBalls Well-Known Member

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    To be honest I just replied to be polite, it was the only interpretation that came to mind as the reply itself was very vague in it's design :shock:

    ????"Usually the "little guys."????
     
    Last edited: Jan 1, 2018
  10. Kode

    Kode Well-Known Member

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    This shows what this system as done to people. Workers have been forced to settle for low-paying jobs because of availability. Engineers who can't find work as engineers have resorted to work at McDonald's and Walmart to feed their families. Starbucks requires their dishwashers to have a college education because they can, and the "qualified" workers exist and need jobs. We all know such people and more people are seeing through the right wing propaganda that this is about individuals. They are seeing that instead it is a systemic problem.
     
  11. ButterBalls

    ButterBalls Well-Known Member

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    The system or was it the last president? According to the BLS the last eight years was mostly service sector and part time job *Shrugs* So what's your point?
     
  12. spiritgide

    spiritgide Well-Known Member Past Donor

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    Business equipment is not exactly tax deductible. If you buy a truck for example, you can deduct the cost of it over a period of years- and when you sell it after deducting it all, the amount it brings is taxable income. What gets deducted is actual cost used to do business; consumed goods. If those old guitars are worth anything (and some may be worth more than their original price) what ever they sell for is taxable.
     
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  13. ButterBalls

    ButterBalls Well-Known Member

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    Perfect :)
     
  14. BleedingHeadKen

    BleedingHeadKen Well-Known Member Past Donor

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    Yes, their retirements are heavily invested in stocks. They benefit when businesses grow and profit. I was actually agreeing with you.
     
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  15. Kode

    Kode Well-Known Member

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    There you go again. Attack the left. You haven't yet discovered that politicians only serve the economic base and it's that base that determines the course of history in general. The service economy started long ago and advanced under the leadership of both parties.

    https://nationalaffairs.com/public_interest/detail/the-first-service-economy

    https://duckduckgo.com/?q="service+...my+in+the+US&t=hg&search_plus_one=form&ia=web
     
  16. Kode

    Kode Well-Known Member

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    My "point" is that your anecdotes don't tell the whole story and are therefore meaningless bias.
     
  17. ButterBalls

    ButterBalls Well-Known Member

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    Much better, and much clearer, my apologies!
     
  18. Vet1966

    Vet1966 Well-Known Member Past Donor

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    You're right on that one - for corporations - but I believe the OP is a pass through business - which means everything is deductable and not
     
  19. Kode

    Kode Well-Known Member

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    Thank you.
     
  20. ButterBalls

    ButterBalls Well-Known Member

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    Are you claiming to be BleedingheadKen?
     
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  21. xwsmithx

    xwsmithx Well-Known Member

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    I don't think you understand the point of reducing taxes. Yes, reducing taxes grows the economy, and study after study has shown that low tax places grow faster than high tax places. But the point is that the individual gets to keep more of his own money instead of transferring it to the government. From a purely individual rights perspective, it doesn't matter whether the individual plows the money back into the economy or stuffs it in a mattress, because it's his money, not the government's. The same goes for corporations. It's not the government's money.
     
    Last edited: Jan 1, 2018
  22. Kode

    Kode Well-Known Member

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    No. Is that who you replied to? Your post appeared to me right beneath mine, and if it was BleedingheadKen, he is on my "ignore" list so his posts don't show up for me.... -they're invisible. So it looked like a reply to me.
     
  23. Windigo

    Windigo Banned

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    You dont know the first thi ng anout corporate tax law do you.

    You are 100% pulling this out of your ass.
     
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  24. BleedingHeadKen

    BleedingHeadKen Well-Known Member Past Donor

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    I'm on his ignore list. He likes to insult people, but he's much too delicate to take what he dishes out.

    In his ideal world, he's considered it a height of his god-like benevolence to allow me the quick death of a bullet to the back of the head.
     
    Last edited: Jan 1, 2018
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  25. SMDBill

    SMDBill Well-Known Member

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    That's too short sighted of a view. Money corporations put into their businesses today should, if invested properly, result in even higher profits from which they will surely pay a lower tax percentage, but the goal is a higher total tax revenue stream as production increases, R&D expenditures increase, construction investments happen, and the side effects of all this roll to contractors, utilities, subcontractors, employees, and puts a lot of taxable income revenue into city, state and federal coffers as more people are required to support the higher investment in the business. Long term, it means more taxpayers, more sales tax to states, and an increase in the velocity of money changing hands.
     

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