3 ms·

I don't get the fascination with taxes. Being a business owner my fascination is with sales and revenue. If my taxes are cut I don't create jobs or give raises,

I don't get the fascination with taxes. Being a business owner my fascination is with sales and revenue. If my taxes are cut I don't create jobs or give raises, quite honestly, that doesn't even enter into the equation. My goals is to do the most work with the fewest jobs. If my sales increase and my employees can't do their job then I add jobs. Job creation is a function of sales and productivity. Not taxes.

dkokelley 18y ago
At an individual level it is hard to gauge the effect of lowered taxes on productivity and employment. This is why we have to step back and look at the aggregated data across all businesses. For the theory to work, there must be at some point businesses who are on the edge of whether to hire or not. High volume low margin businesses I would think have the most direct relationship between taxes and employment. There's another aspect to hiring that we should consider. If you receive a tax break, you can pass the savings on to customers in lower prices or bring more customers in through advertising. You are right, just because you have the money doesn't mean go hire more people. Smart business owners know that hiring people should only be done when the value they could bring the business outweighs the cost. The point is that lower taxes can let you expand or market to more customers, and as business grows, you will employ more people to keep up with demand.
eds 18y ago
Taxes dictate how many new sales you have to make to hire another person, and vice versa. Just because you're ignoring them when running your business doesn't mean they're not affecting you. Speaking of equations, here they are: http://highered.mcgraw-hill.com/sites/0070891540/student_view0/chapter7/chapter_notes.html http://highered.mcgraw-hill.com/sites/0070891540/student_vie...

3 ms·

I don't get the fascination with taxes. Being a business owner my fascination is with sales and revenue. If my taxes are cut I don't create jobs or give raises,

by logicalmind 18y ago

dkokelley 18y ago
At an individual level it is hard to gauge the effect of lowered taxes on productivity and employment. This is why we have to step back and look at the aggregated data across all businesses. For the theory to work, there must be at some point businesses who are on the edge of whether to hire or not. High volume low margin businesses I would think have the most direct relationship between taxes and employment. There's another aspect to hiring that we should consider. If you receive a tax break, you can pass the savings on to customers in lower prices or bring more customers in through advertising. You are right, just because you have the money doesn't mean go hire more people. Smart business owners know that hiring people should only be done when the value they could bring the business outweighs the cost. The point is that lower taxes can let you expand or market to more customers, and as business grows, you will employ more people to keep up with demand.
eds 18y ago
Taxes dictate how many new sales you have to make to hire another person, and vice versa. Just because you're ignoring them when running your business doesn't mean they're not affecting you. Speaking of equations, here they are: http://highered.mcgraw-hill.com/sites/0070891540/student_view0/chapter7/chapter_notes.html http://highered.mcgraw-hill.com/sites/0070891540/student_vie...