One thing a lot of rich people seem to be unable (or unwilling) to grasp is that once you get to a certain point the numbers become pretty meaningless: if you're making $10,000,000 a year then what does it matterif you pay 10% more? They're already set for life -- It doesn't affect them or their lifestyles at all, whereas for someone pulling down $18,000 a year that 10% could be the difference between eating and not eating.
A rich guy . . . brrr! . . . owns the company I work for. He's never bounced a paycheck yet. No he was not a silver spoon baby, he started the company in a tiny little storage place.
Taxes that come from companies, of any size, are simply another business expense. Where do you suppose they get the money for such expenses?
As you say -- it's another business expense. He earned it, he deserves every bit of his success -- but paying the highest bracket at 39.6% is annoying but a heck of a lot better than half or more. He can count it mentally as charity if he wants, too.
Darn thing is, taxes are applied across the board. Every similar business pays them, at the increased rate. Hence, it's not as subject to competition as some other increased expenses might be.
Thus, instead of cutting things, what the affected businesses usually do is, raise their prices.
In effect, this is a regressive tax!
The poor who patronize any such businesses are affected much more severely. But they hardly realize what's happened, much less why, as it's a gradual change. The actual cause remains well in the background.
IMHO, that is the whole point. It' s one of the politician's sneakiest tricks.
Also, last I checked, you pay taxes on money coming in AFTER expenses... grow the business more instead of putting it in your pocket and you still get value from it, the gov't doesn't eat it in taxes, and the economy prospers more because of the increased cash flow.
What'll be even more interesting are the taxes for dual professional families, especially small business owner couples, as Steve and I were. I'll be curious about our pediatric dentists, for example... lovely couple with kids, bith dentists, will they both continue working?
I would think it would depend on how much they wanted in retirement plans like SEPT IRAs, Roths, 401(k) KEEOs (sic) etc.. You cannot max those out unless you made profit. I pulled out my ROTH payment for 2008 last Xmas -- at a loss -- because with medical bills, I expect to have no income for last year.
Also -- is the person not working doing things that would be paid for by the couple otherwise? I suspect $$ folks who help with financial planning will get biz from this.
Are you both still at MicroSoft plus starting another biz on the side?
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A rich guy . . . brrr! . . . owns the company I work for. He's never bounced a paycheck yet.
No he was not a silver spoon baby, he started the company in a tiny little storage place.
Taxes that come from companies, of any size, are simply another business expense.
Where do you suppose they get the money for such expenses?
no subject
no subject
Thus, instead of cutting things, what the affected businesses usually do is, raise their prices.
In effect, this is a regressive tax!
The poor who patronize any such businesses are affected much more severely. But they hardly realize what's happened, much less why, as it's a gradual change. The actual cause remains well in the background.
IMHO, that is the whole point. It' s one of the politician's sneakiest tricks.
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-E
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Also -- is the person not working doing things that would be paid for by the couple otherwise? I suspect $$ folks who help with financial planning will get biz from this.
Are you both still at MicroSoft plus starting another biz on the side?