Geithner- Those tax increases won’t hurt a bit
Of course not. Why would an 8% increase in taxes on the top tax bracket hurt small business? I mean it’s just money they could have used to expand improve or hire. I sure wish the academic wizards of smart would spend a little time running a small business before they make dumb ass statements like this.
The problem of course is that everything is theory in their minds. Everything is a blackboard. Everything is an equation. Everything is a trade off. OK, sure, if we suck more capital out of the market it might hurt a bit, but the government gets more money to spend and if it means a few more people aren’t hired, so be it. Besides, the government needs more money to pay for unemployment benefits so the people who couldn’t get jobs because the companies we taxed had no money to pay them, have money to live on. Got it?
httpv://www.youtube.com/watch?v=u5Rclnr5Enw
My favorite part is where the Treasury Secretary points out those small businesses are getting all kinds of credits to make up for the tax we took. Like a tax credit to hire the new employees they can’t hire because the government took the money from them they would use to hire. Got it?
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I'm so confused…this makes no sense. I have a hard enough time with music theory, never mind economic theory! But it does seem like a big lie to say it's not going to hurt the economy. And I'm not shocked that this will be pushed thru before the elections. (I'm guessing we'll know exactly what's in this package after it passes…)
Coming from a proven tax cheat, this doesn't mean much.
If an 8% increase in taxes on small business results in an 8% increase in unemployment, would it be a big deal? It seems clear that Geithner knows very, very little about small (or big) business, but know a great deal about raising other people's taxes.
The whole " tax credit to hire the new employees they can’t hire because the government took the money from them they would use to hire" thing is simply a way for the government to exercise its power over small businesses. And you can be sure that there won't be as much money coming back as was confiscated. And if you don't toe the line on salary minimums for employees, or salary caps for management/owners, those credits are likely to have "a little accident" (as they used to say in gangster movies).
I find the whole "government handouts are better than real wages from jobs" (handouts including tax credits and other subsidies) idea to be frightening.
The usual assumption by Jim et al. is that the reduction of taxes will inevitably result in more hiring instead of that money going into one's "pocket". An even if the money goes into a bank account from which it could be lent out, there is no certainty that the bank will loan the money (is it not one of the problems out there now?)
The usual assumption by lefties et al. is that small businessmen (substitute "person" for man if it offends you), large businessmen and the dreaded rich people just stuff any tax savings under their mattress or light cigars with $100 bills.
The bank loan issue is a definite problem, but one that comes from both the banks and the government, and the distrust between the two.
Maybe we should ask John Kerry where the rich hide their money, given his recent story about hiding from the MA sales and excise taxes by registering his boat in Newport, RI, where there is no such tax. Back in 2003, he and his wife paid an effective tax rate of a whopping 12.8%. While I admire anyone that can avoid any tax they can, I don't feel the same about the very legislators that continue to vote for more and more taxes for everyone else.
Yeah, I digress, but I loath Kerry, and being from MA, I am entitled to do so. 😉 ;-(
There is no sense in putting plutocrat philosophers in positions where real life decisions need to be made.
The other piece of this nasty puzzle is that, these yahoos (read: ALL of DC) have been spinning or ignoring truth and fact so long, they think unproven theories are the best option. Or worse – proven failed methods ( see below) can be made to work.
Marx, Lenin, Mao, Hitler all came and went in a very short time. This Republic has lasted over 200+ yrs and has the potential of matching the Roman empire if we are smart enough to learn from their successes and failures.
And why is it that every time I see Geitner I hear that catchy tune: " … if I only had a brain."