Monday, October 08, 2012

FROM THE DEPARTMENT OF BIG, STEAMING PILE OF ELEPHANT DUNG: "JOB-KILLING TAXES"

Here is a video of a recent campaign speech by Mitt Rmoney. This is one of the big Republican lies of the season, the Myth of Job-killing Taxes. According to this myth, raising taxes on small business owners (or owners of small businesses) will keep them from hiring more employees. You see, my friends, the majority of owners of small businesses are taxed on their income (this part is true), and raising the income tax rate on these folks will make them not hire more people (this is a huge crock of poop).

I am the owner of a small business. I previously owned another small consulting business for 21 years, and employed as many as 16 people at any one time. I can tell you exactly how many times my hiring decisions were influenced in any way by my income tax rate: ZERO. Hiring decisions are based on existing and projected work load, work capacity of existing staff, and sometimes on opportunities to add a new product or service.

Mathematics needs to be applied here. Let's say that for every new hire I make an additional $30,000 profit for the year (I'm making up a number here). If my income is taxed on this number at 35%, I would pay $10,500 in income tax, leaving me with $19,500 in my pocket. If I'm taxed on that profit at a rate of 40%, I would pay $12,000 in income tax, leaving me with only $18,000 in my pocket. Oh no, I better not hire anyone because I will make only 18,000 additional dollars this year instead of 19,500! Damn job-killing taxes!!!

What amazes me is that anyone believes this myth. As an owner of a small business, I'm speaking out; I hope others will do the same.

(Can we get someone to scoop up this stinking pile and get it out of here?)

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