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American Capital Agency Corp. Message Board

  • hgff101 hgff101 Dec 3, 2012 9:11 AM Flag

    Fiscal cliff job creators

    "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?

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