"The rich are the ones that provide jobs, I have never been employed by a poor person. That is why it make sense on a practical, ethical or economic level.
When you tax the job creators (the rich) they have a couple of things at their disposal that they can use in order to counter the tax hike, they can increase prices on products and services, lay off or part time the worker or shut down operations."
this little piece of 'common sense wisdom' being circulated among the uninformed set is based on a total lack of business understanding.
Business produce goods and services with inputs: human resources (people), natural resources (things), and financial recources (money). It is axiomatic and fundamental to the success of a typical business to optimise these inputs.
To translate for you, businesses dont hire and keep people around because they feel like it. They hire people to do a job. They focus on efficiency to hire just enough people to do a job. They dont hire people for non-economic reasons.
Taxes are not a factor determining the cost inputs (people, things, money) needed to produce a gross profit. Taxes are taken out of earnings, not costs. Taxes dont change the cost, they come out of earnings.
Do you understand any of this?
Yes, I do understand business. I received that class my first year of my MBA. I am a business owner as well. And when there is an increase in taxes my clients pay the cost of my tax bite, not my business. At the end of every transaction my clients pay for the items plus tax. And when there is an increase and taxes on my return on investment I halt my investments. When I have to pay more for employee health care I lay off or employ part time workers.
I am a business owner. I hire more people to expand my business.
When taxes rise on me and on my customers I am less likely to hire and more likely to layoff employees.
It makes more sense for me to layoff employees because I will not have the business to support them.
You have clearly never owned a small business.
The crash of 08 and the election of Barack Obama has caused a lot of latently irrational people to openly express their irrationality. They feed off each others statements and get reinforcement and from talk radio.
Like anyother human endeavor, there are a lot of business people who simply dontbknow what they are doing, some manage to get by on luck.
You might own a business but thats no indicator that you have the faintest clue what you are talking about, which your statement shows is the case.
It depends on the tax rate. A flat tax of 10% is absurd. A tax of 30-40% is reasonable for the highest tax bracket. 60-70 cents of profit is better than 0 cents of profit.
Anything above 40% would start to deter business owners from expanding or starting a new business.