Over Taxation Has Consequences

I have said time and again that the best way to stimulate the economy is to greatly reduce taxes for everyone who pays takes, up to and including an income tax holiday of several months in duration. Just as important, if not more so than tax cuts for individuals are the same for small businesses.
Obama and the Democrats seem totally oblivious to the concept that small businesses are the only employers who can act quickly. Small businesses are the only ones who can hire people practically overnight.
If all of us consumers ended up with several hundred to several thousand extra dollars in our paychecks, we would spend. The small businesses would feel this “stimulus” almost immediately. They in turn, would add employees and stock to respond to this increased demand. As a result, the unemployment rate would drop and the goods and services the small businesses buy from the larger corporations would in turn “stimulate” the corporations. They would begin their hiring procedures, which typically takes significantly longer than for a small business. The unemployment rate would drop again, as the corporations added people. These new hires at both the small businesses and large corporations would add their paychecks to the economy and before we know it, no more recession.
Obama and the liberal Dems are doing it all backwards. No chance they’re going to listen to anyone though.
Instead of doing this the right way, they are going to increase the tax burden on small businesses.
As a result, many small businesses are going to cut back in order to lower their income to below the $250,000 threshold set by Obama. Instead of helping the economy, Obama’s plan is going to hurt it even more. Not only have they saddled our children with a debt they have no chance of being able to afford, they are lengthening the recession, just like FDR’s spending did with the Great Depression.
I can’t say I blame the small business owner. Why would they want to work hard just to give their hard earned money way in taxes? I know I wouldn’t (and don’t) want to.

Obama’s tax proposal – which promises to increase taxes for those families with incomes of $250,000 or more — has some Americans brainstorming ways to decrease their pay, even if it’s just by a dollar.

A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.

So far, Obama’s tax plan is being looked at skeptically by both Democrats and Republicans and therefore may not pass at all.

“We are going to try to figure out how to make our income $249,999.00,” she said.

“We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama’s tax plan,” she added. “Why kill yourself working if you’re going to give it all away to people who aren’t working as hard?”

Original Link.

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