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Would raising taxes help or hurt a business owner from hiring more workers?
Would like to hear people's opinions on this issues, do you think raising taxes would help or hurt a business owners in regards to hiring more employees?
17 Answers
- Anonymous10 years agoFavorite Answer
Hurt, incentives matter and when you increase the cost of hiring someone you get less hiring. It's so simple, I'm very disappointed I have to keep explaining simple economics.
Source(s): Libertarian - EyeswideopenLv 610 years ago
Businesses have to make money in order to stay in business so if they incur an increase in expenses, be it materials, labor or taxes, the expense has to be countered in some way. They have several options, increase the price of the product and hope that the market can support the increase, cut expenses by decreasing labor costs by reducing pay, freezing hiring or even laying off employees. The last option is closing the doors and collecting a check from Mr. Obama. Yes, increasing taxes does hurt businesses as well as consumers and the work force.
- BflowingLv 710 years ago
I've never seen a business model or an operating business base its hiring practices on the tax rate or even how much they may owe at the end of the year.
If you think about it, if they hire someone, they will pay less taxes if everything else remains the same!
But in practice, a business hires to increase sales, or production, or to reduce administrative and overhead costs.
- 10 years ago
What really hurts is when people don't have enough money to buy things from business (demand). Businesses right now expect to be taxed more for their work. What is really needed is another stimulus in the form of tax cuts for small businesses and lower/middle-income people (the groups most likely to spend more of their income). Also they should made as large as possible.
Source(s): Common sense and by Googling "Effects of the American Recovery and Reinvestment Act of 2009 on the Great Recession". - How do you think about the answers? You can sign in to vote the answer.
- Anonymous10 years ago
Please explain to me how raising the taxes on a business owner could possibly help the owner to hire more people? Even a grammar school kid would know better than this.
- ?Lv 610 years ago
Look at the whole picture----fuel is 4 bucks a gallon--------energy,because of NEW epa REGULATIONS, is going up 20% in the next 5 years. Obama pledges that he wants to raise taxes ---health reform bill FORCES businesses to provide health ins. for employees.---AND, because of NEW FINANCIAL REFORM, it is harder and harder for businesses to get a loan-------YOU tell me, would you take a chance on expanding your business right now with ALL THIS BS LOOKING AT YOU SQUARE IN THE EYES?-------------THINK ABOUT IT
- ?Lv 410 years ago
Raising taxes, especially payroll taxes, only takes money out of the business's coffers. They have less money to work with, and it often leads to layoffs and delayed hiring.
- ?Lv 710 years ago
Definitely hurt, as in Obama Care which will drive up business costs, many of which cannot be passed on to the consumer.
MR
- Anonymous10 years ago
its going to hurt,
you got more going out the door then coming in, your not going to hire someone unless things get alot better in the offfice/store