Although ultimately of course whether a new company continues growing and creates self-sustaining jobs is a function of customers’ ability and willingness to pay for the company’s products, not the entrepreneur or the investor capital. What good are the tax breaks if they just go straight into the bank (where it either sits and earns interest) or get invested overseas or in companies that already have strong demand to sell products and create jobs ?
The company’s customers are who buy the company’s products that in turn creates the need for the employees to produce, sell, and service those products. If those customers go broke by tax policies that reward “the 1%” at the expense of everyone else, the demand for the company’s products will collapse. And the jobs will disappear, regardless of what the entrepreneur does.
“If those customers go broke by tax policies that reward “the 1%” at the expense of everyone else, the demand for the company’s products will collapse. And the jobs will disappear, regardless of what the entrepreneur does.”
So, to use your reasoning, and assuming the “1%” act in their own rational self-interest, why would they want taxes to be that high? People with money who work for it do not want taxes to be that high. I am not sure if you are on furlough from DU or not, but think about this.
I do have a couple of solutions though. One, maybe voters can stop voting for the Dumocrat politicians who make it more expensive to do business in the U.S. through laws, regulations, unions, and taxes. Voters put these people in office and then wonder why jobs are sent to China or wherever. Businesses do not exist to give people jobs or to improve the economy. They exist to make a profit, period! If they cannot do it here because of the cost of doing business, they will do it elsewhere. It is the CEO’s job to see that it happens that way, as he/she serves only at the pleasure of the Board of Directors of the company. It is their job to maximize shareholder value. Employees want loyalty from companies, then show their disloyalty to business as a whole by their actions at the ballot box.
Solution 2: At this time, wage earners pay income taxes. Investors pay capital gains taxes. I could solve the problem of our debt easily, imho. A flat tax for wage earners, abolish death and the capital gains tax, and then enact a tax on WEALTH along with spending cuts. Then we will see if the Hollywood elite, Harry Reid, Warren Buffet, any Kennedy, and all of the other rich fools who call for higher income tax on wage earners are still so eager to raise taxes on themselves. The tax rate on wealth will match the tax rate on wage earners, by constitutional amendment. Then we will see how many are out there complaining about the 1% or how many of the 1% think tax rates should be higher.