richardhutnik said:
I would argue that increased employment is governed far more by the perception the business has about future business conditions than a lot of things, including tax rates and even regulatory climate. If a nation races to the bottom and totally trashes its economic base, it sets into place a downward spiral that can lead to its eventual demise. |
You're correct that current business conditions and the expectations surrounding future business conditions determine hiring and investing decisions within a company, but you forget to consider that tax-rates and regulatory climate heavily influence current business conditions and a business' expectations for future business conditions ...
If you're a business in the United States and you constantly hear the rhetoric of increasing business taxes, increasing regulation and introducing cap-n-trade and you are already uncertain about how your company will handle Obamacare and other regulations and emerging business conditions the last thing you're going to do is hire employees unless you're in desperate need for them.
