AN, other than the personal observations which is hard/easy for me to make up a counter story/observation, do you have any data that supports the following claim: Increasing business taxes results in employees getting fired.
Note, I am expanding on SK’s point of just addressing highest tier tax rate.
Businesses hire employees (or do anything else ) to get more net income. In this equation, the taxes are already accounted for. If an employer forecasts increasing demand for his/her products which in turn means increasing revenue, they will hire help. Business taxes or tax rates have nothing to do with that decision. Similarly, if the business outlook is bleak, they will fire the employees. Again, taxes have nothing to do with that decision.
So unless I am missing something basic here, the question is: what is the relationship between business taxes and hiring/firing employees?
[quote=AN]
Thanks for clarifying and I agree with these points except for the business taxes. What make you think business won’t just pick up and move to a lower taxed country. Most countries do have lower corporate tax rate than ours. Btw, how small is small. I know a few mom and pop businesses and they would just fire their one employees if their take home is less. I also know one business owner of a company with 150 employees and they haven’t given a raise in 3 years. If their net profit goes down, they’ll either lay off or just not give raise for a few more years until they get their desirable net profit. They can also fire their American employees, except for their sales force, and hire more employees for factory in lower cost countries.[/quote]
