Higher taxes stymie job creation

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pete6032

Diamond Member
Dec 3, 2010
3,949
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#51
How is someone supposed to have money to reinvest when profits are taxed at 70% - 90%?
The taxes you pay are on your net profit only. If you had $1 million in revenue and took that million and invested $900,000 into more equipment, worker training, upgraded office spaces, etc, then you would only pay taxes on $100,000, and if you only had $100,000 in net profit you wouldn't be taxed anywhere near 70%.
 

Viper1j

Golden Member
Jul 31, 2018
1,307
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#52
Taxing the rich would prevent job creation, and here is the reason why:

One example: An Asian Indian I know, he came to the United States legally, got a bachelors degree in engineering - this was in the early 1980s.

Now he owns two factories and employees several hundred people. If he had been taxed at 70% - 90% he would not have had the money to reinvest. Those new jobs would not have been created as the money would have been in the hands of the government. The employees get full benefits such as health insurance, vacation, 401k, paid holidays.... and this is not a union job.

There are part of the one 1% who create jobs. When was the last time you had a payroll of $100,000 a week? That is how much one company I worked for paid out in wages along every week.

The question is, how would you tax the 1% at 70% - 90%, but still allow those people to create jobs?

Or maybe not tax the job creators and jus tax people who build wealth through stocks and bonds? Then again, that would prevent people from investing. If someone is going to be taxed at 70%, why would they risk investing in a start up comapny?

One of the benefits of investing in a start up is big risk, big reward. What would happen when the government takes 70% of that reward?

Even Forbes says lower taxes helps create jobs:

Trump's Tax Cut Leads To Doubling Of Job Growth In Low-Tax States Vs. High-Tax

https://www.forbes.com/sites/chuckd...-of-job-growth-in-low-tax-states-vs-high-tax/
Did you really not see that you get a free ride on your FIRST 10 MILLION DOLLARS?

If you've got 10 million and can't afford to hire a pool boy or landscaper, you've got bigger issues than taxes to deal with.
 
Oct 6, 2009
22,226
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#53
The taxes you pay are on your net profit only. If you had $1 million in revenue and took that million and invested $900,000 into more equipment, worker training, upgraded office spaces, etc, then you would only pay taxes on $100,000, and if you only had $100,000 in net profit you wouldn't be taxed anywhere near 70%.
What makes this thread so bad is that people are talking about taxing profit above $10M at 70% so even if taxes worked the way TH thinks, his "friend" would still have millions to reinvest. The post fails in like 7 dimensions.
 
Mar 11, 2004
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#54
What makes this thread so bad is that people are talking about taxing profit above $10M at 70% so even if taxes worked the way TH thinks, his "friend" would still have millions to reinvest. The post fails in like 7 dimensions.
He can't help being stupid. Its good for a laugh though.
 

compcons

Golden Member
Oct 22, 2004
1,400
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#56
When we talk about tax the ultra wealthy, it is about taxing their PERSONAL income. You know, their salaries. That money is not funneled back into their company.

Read and re-read Jhhnns post until you understand this very simple concept. These people are NOT job creators.
 

cytg111

Diamond Member
Mar 17, 2008
8,120
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#57
When we talk about tax the ultra wealthy, it is about taxing their PERSONAL income. You know, their salaries. That money is not funneled back into their company.

Read and re-read Jhhnns post until you understand this very simple concept. These people are NOT job creators.
Im sorry, this is not a fox talking point so it does not compute. que?
 
Sep 5, 2000
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#58
will texashiker ever come back? People like him stay stupid because they wont take in knowledge that contradicts their beliefs.
 
Oct 18, 2005
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#59
will texashiker ever come back? People like him stay stupid because they wont take in knowledge that contradicts their beliefs.
He will return to duhvert his own thread.
 

cytg111

Diamond Member
Mar 17, 2008
8,120
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#60
will texashiker ever come back? People like him stay stupid because they wont take in knowledge that contradicts their beliefs.
Nope, think we broke him.
 
Dec 18, 2010
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www.countrylifenet.com
#61
You've missed the entire point; you dont reinvest profits. Reinvestment occurs before profits are calculated. If you reinvested all your revenue, you would have no profit, and thus no tax.
I predict no counter to this post by TH or otherwise conservative enlightened.
Do you realize how stupid that sounds? "We are going to reinvest before we know how much money we have to reinvest."

Do yall work for companies that have zero money in the bank? As in they have nothing? Where do you think that money came from? Profits.

Let's say a company wants to experiment with a shell and tube heat exchanger - I have lots of experience with those. Let's invest two million, but gee, we only made $100K profit. Where are we supposed to come up with the other 1.9 million?

So what your saying is we need to change the tax code and eliminate tax holes?
 
Sep 5, 2000
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#63
Do you realize how stupid that sounds? "We are going to reinvest before we know how much money we have to reinvest."

Do yall work for companies that have zero money in the bank? As in they have nothing? Where do you think that money came from? Profits.

Let's say a company wants to experiment with a shell and tube heat exchanger - I have lots of experience with those. Let's invest two million, but gee, we only made $100K profit. Where are we supposed to come up with the other 1.9 million?

So what your saying is we need to change the tax code and eliminate tax holes?
wtf are you talking about? I cant even understand your retarded train of thought.
 
Sep 5, 2000
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#64
It is sad to see people hell bent on fleecing companies and job creators.

Run companies and job creators through the tax mill, watch innovation, job creation... plummet.
double down on dumb.
 
Dec 18, 2010
18,689
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www.countrylifenet.com
#65
wtf are you talking about? I cant even understand your retarded train of thought.
Let's play a game, you tell me how much you want to invest into R&D, and I will tell you how much money the company made.

In short, that is what uclaLabrat said. We are going to reinvest before we even know how much money the company made..

You going to play?
 

sactoking

Diamond Member
Sep 24, 2007
6,118
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#66
Yeah that's not how GAAP/tax reconciliation and capital investment decisions are made.
 
Sep 5, 2000
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#67
Let's play a game, you tell me how much you want to invest into R&D, and I will tell you how much money the company made.

In short, that is what uclaLabrat said. We are going to reinvest before we even know how much money the company made..

You going to play?
I want to reinvest 50k into r&d
 
Sep 5, 2000
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#70
Then let's play.

You, as part of management, tell me how much you want to reinvest.

I, as part of accounting, will tell you how much profit the comapny made.
I ust told you. PLay with me.
 

sactoking

Diamond Member
Sep 24, 2007
6,118
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#73
Why should I play ? I'm an accountant. I do GAAP/tax, GAAP/STAT, and STAT/tax work. I know that's not how it works.
 
Sep 5, 2000
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#74
i dont know if you think you are making a point but you arent.
 
Sep 5, 2000
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#75
Why should I play ? I'm an accountant. I do GAAP/tax, GAAP/STAT, and STAT/tax work. I know that's not how it works.
he thinks rich people take a profit pay taxes on it then reinvest it in the company. His broken brain thinks this is true and you cant tell him otherwise.
 

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