[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]
I would suggest that your friends with businesses don’t run their businesses as most are run. Most businesses are run for the highest net possible, and they don’t have employees that they don’t need. If their net income isn’t already significantly more than $250K a year, then this conversation is moot, since we’re discussing only the top tax rate. I’d love to see a very precise description of how a very small increase in the top tax rate would cause a company to drop an employee. With actual numbers. I’ve asked this question quite a few times in other circles, I’ve never got a response.