HappySqurriel said:
Ail said:
HappySqurriel said:
Ail said:
What I really don't understand is the whole republican logic around the fact that raising taxes for people that makes over 250k a year will slow job growth.
I mean it's easy. Who in this country makes over 250k a year ? The list isn't that long.
- Lawyers, traders, executives, doctors, salesmen( some not all by far), actors, professional athletes...
Most small business owners do not even make that least .
And last I checked very few of the people in that list are actually engaged in creating new business, they already have a well-paid job and are pretty happy with it......( executives affect job creation but based on the company finances, not their own pay or tax level).
So explain to me how the way those are taxed affect job creation?
In a logical way please...
PS : I'm going to come close to that 250k limit this year due to exercising a lot of stock options and I can tell you for sure I am not planning to create any job....
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There are a few reasons ...
First off, you have capital flight. If you're paying a punitive tax rate in one jurisdiction and you can pay a lower tax rate in another jurisdiction odds are pretty good that you will move to the lower tax jurisdiction if you can. While you may not have been directly involved in creating jobs, the loss of your spending and investment in a region can dramatically lower job creation.
Secondly, most high income earners have significant control over their own earnings and the earnings of others. If you increase the tax rate on executives or even small business owners odds are pretty good that they will give themselves significant raises and make cut-backs elsewhere or increase costs on their services to compensate.
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Seeing how US citizens are taxed based on their worldwide income I have trouble seeing in which juridiction they would be running too........( Mars ? Jupiter ?)
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You do realize that people can move to other countries, right?
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They can but are you aware that all US citizens are taxed based on their worldwide revenues ?
If you move to Russia as a US citizen you will still pay the difference between russia's taxes and US taxes to the US government if US taxes are higher. ( so basically if you move to a country with lower taxes your taxes will actually not be lowered..)
The only way to escape the US federal taxes is to give up your citizenship..........
PS : The US is kind of an exception in that regard, most european countries tax their citizen based on the revenue they make in the country.
PS2 : This is only the case for income, not for business revenues where things are totally different ( although business have to pay some taxes if they want to bring back to the US cash that they made in foreign countries through subsidiaries).
