9-2-10 clueless brain
I'm still trying to make sense of it all..... business, taxes, the economy and the free market system. I'll admit I only took two business type classes in my 8 years of college, and one was a marketing class. My experience was in science and math, so I know I probably don't have any "business" trying to even write about such topics. But I guess I do write about them, as a way of trying to wrap my brain around it all.
I don't know who to believe, I hear several sides to the tax cut debate and just get more confused. MY own logic tells me that if I had a business, I would only be able to expand and hire more people if the product or service I was providing/selling was in high demand. If more people (the mass of middle class people) had more money in their pockets, they could buy from me, increasing demand would mean I would and could expand.
I recently heard on a NPR show that Starbucks is still doing OK, but Walmart sales are down.... to me this indicates who has money to spend and who does not.
Keeping all the money at the top 2% of wealthiest people, only seems to keep the money circulating at the top. I just don't see it tricking down much.
My Godchild, bless her heart, who is a business major, has even been trying to educate me... and I am trying to listen and learn from her.... at the same time this week I see this Letter to the Editor in the KC Star Newspaper.... one more opinion to think about, and I'll admit.... I'm even more confused.
Bush Tax Cut for Rich by David Troup
"I grow increasingly frustrated hearing the Republican legislators and pundits whine that if the (Bush) tax cuts are allowed to expire for the wealthy- defined as joint filers with taxable income of over $250,000- then thousands of jobs will be lost. The mantra is that unemployment will increase because the increase hits small businesses, which create jobs.
This claim is both unprovable and illogical. Keep in mind that taxable income is adjusted gross minus your exemptions and deductions, so $250,000 may be $300,000 in adjusted gross income. At that level of income, the effect would be an additional $30 in federal income tax for every $1,000 of additional income-- an amount that is not likely to affect anybody's purchasing decisions.
But most importantly, an employer does not pay taxes on the money spent on employee salaries and benefits, so the tax rate you pay on what's left is irrelevant to a decision whether to hire someone.
Any businessman who would decide not to hire someone because he would have to pay an extra 3 percent to 3.6 percent on his taxable income isn't smart enough to be successful anyway."