Just a word to those liberals out there gnashing their teeth to raise taxes on the job creators in this country. Corporations do NOT pay taxes – they are NOT people. People pay taxes. And when taxes are raised on these ‘people’ they are ALWAYS passed on to the consumer. That would be your average Walmart shopper or automobile driver or grocery shopper.
California just voted to raise THEIR OWN taxes on the high earners. Now who do you think voted for that one? The high earners? Seriously?
Rich folks got there one of two ways: they inherited wealth (the Kennedy clan) or they EARNED it (Bill Gates, Steve Jobs, Sam Walton). BTW - wealth isn’t taxed – only earnings. The Kennedy’s probably pay less tax than Joe the Plumber. When the government raises taxes on the job creators (Gates, Jobs, Walton) they have two choices: pass that increase down the supply chain, which raises consumer prices – or – reduce their operating expenses (i.e. close stores, reduce labor costs). The SMALL businesses don’t have the wiggle room of the large corporations. The Pizzeria owner will opt not to hire new workers. Why should he grow his business, increase his income, move into a higher tax bracket, and pay more money to the government. Why would the mom and pop who have been in the HVAC business for years hire more technicians so they can meet the consumer demands, and cross the magic threshold where they are required to provide Obamacare? They will opt not to grow.
Circle back to California. There is an article by Ben Feldman suggesting that Jobs are NOT leaving California.
“the evidence indicates that most of the jobs lost in recent years did not move outside the state as much as they simply vanished during an unusually tough downturn in the business cycle.”
Ben – why is there a downturn in the business cycle? Could it BE government regulation and higher taxes? The headline on Breitbart two days ago reads:
California State Controller John Chiang has announced that total state revenue for the month of November 2012 fell $806.8 million, or 10.8%, below budget.
Democrats thought they could hammer “the rich” by convincing voters to pass Proposition 30 to create the highest state income tax in the nation. But it now appears that high income earners have already “voted with their feet” by moving themselves and their businesses out of state, resulting in over $1 billion shortfall in corporate and income taxes last month and the beginning of a new financial crisis.
We have a president, who has never held a private sector job, let alone run a business, and who has apparently never taken Economics 101, hell bent and determined to turn the entire country into California. There are ‘pretend’ negotiations going on in Washington to avoid a fiscal catastrophe on January 1. President Obama is so involved and focused on these negotiations that he’s leaving for a $1BILLION dollar Christmas vacation in Hawaii (Dec. 17 – Jan. 6, 21 days worth).
I hope YOU enjoy your Christmas vacation, too. Merry Christmas to all, and to all, a good night.