No, ITT we learn that some people complain that TAXES are what prevent them from doing business, or making money.Originally Posted by Wraith
No, ITT we learn that some people complain that TAXES are what prevent them from doing business, or making money.
Every dollar in profits lost to anything (taxes or otherwise) reduces the incentive to spend/invest money in something.
Not that this is a surprise, but I've decided not to go along with the business idea. Beyond the bad tax climate, I have too many other things going-on in my life to justify the kind of money and time I would have to throw at this to make it worthwhile. Some of the other potential-partners may do their own thing.
Okay?
Look, that's what I've been trying to say all along -- that business decisions incorporate MANY variables. That tax structures (and certainly not tax proposals still under debate) shouldn't be primary drivers or main incentives for the small business entrepreneur.
Taxes are simply part of costs for doing business in a first world, civilized society. Symbiotic and synergistic. Taxes may look like a "profit loss" on a bookkeeping ledger, if it's simply numbers in/numbers out. But using that definition --- the costs of advertising or marketing can seem unprofitable, too.
Taxes help fund all sorts of things that make good places to DO business. In your particular case, that'd mean well-educated, healthy, employed people, with enough disposable income to afford the luxury of domestic pets. Take away the taxes that build public schools, public health, public infrastructure, public transportation....and you lose a huge chunk of the pet market that's geared toward pet affordability.
And yet, if you push the tax needle enough, they can make all the difference in making something not worthwhile. I never said the tax changes were the only driver, but they have been one key driver of my reluctance because it's clear this fight is not over. Other considerations include specifics about each of the potential partners, my own professional obligations and the whole cancer thing.
I've been responding to how you presented fear about taxes eating into profits. When did cancer come into this?
Tax uncertainty is what kept us from pulling the trigger for so long. Now that taxes increased a bit, the math is different for all of us and the incentives are reduced. But, in the intervening time, I've had other stuff come up that -- in addition to reduced profits -- added to the disincentives to jump-in.
In other words, business choices are complex but math is a big concern. Personal concerns are also big.
When you have a deficit and a growing debt, you can only do two things:
1.Raise revenue
2.Lower spending
Lower spending would sink economy into recession as govt spending is a valve of liquidity for the economy. Recession brings unemployment.
To increase revenue there are two ways:
1.Raise taxes
2.Create more taxpayers
Government is a wealth distributor. If taxes are raised on the rich, wealth is distributed. If taxes are raised on the poor, poverty is redistributed.
To create more taxpayers, small company incubators must be implemented. It is called "root development" and has been quite successful in third world. Since small companies take a few years to become profittable, and company mortality is high during that period, raising taxes is the way to go in the short term, incubating companies is good for long term. When you incubate small companies you obtain:
1.More people with jobs
2.More companies paying taxes
3.More people paying taxes
Banks instead are a recessive mechanism in the economy. Banks lend P and collect P+I. So they extract money from the economy, pushing recessive conditions. Using QE and give the money to the banks, instead of doing a helicopter Ben program, is only likely to sink US into recession.
There is no free lunch in economy. For a recovery, someone must pay the bill. And the rich do not want to do it.
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Warren Buffet, the second wealthiest individual in the world, candidly admitted “there’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.” - Source: Will American civil strife kill the Russia-US reset?
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Under the current path of deficit, US is headed either towards eventual hyperinflation or default.
Freedom - When people learn to embrace criticism about politicians, since politicians are just employees like you and me.
Sounds like you were fretting over the $250,000 income threshold more than anything. First, congrats on being an upper-income earnerbut don't get caught in your "tax uncertainty" trap. It's more important to have growing middle-income groups that can actually buy stuff in our middle-class-consumer-driven economy.
I won't press the personal or health issue, but hope you and yours have good health insurance, and things work out well.But, in the intervening time, I've had other stuff come up that -- in addition to reduced profits -- added to the disincentives to jump-in.
In other words, business choices are complex but math is a big concern. Personal concerns are also big.
No, I was specifically fretting about dividend taxes and income/payroll taxes for some of the employees and how we might have to increase their salaries to compensate. I clearly stated this before.
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