McCain keeps saying...

United States
October 25, 2008 5:42pm CST
Can anybody answer this question, because I'm alittle confused. McCain keeps saying, by having low taxes it will create more jobs, my question is, How does low taxes create more jobs?
4 responses
• United States
25 Oct 08
I am the owner of two businesses and here is how it works. I only have a certain amount of money to hire employees. If my taxes go down, I have more more money to hire more people or give my current employees more money/benefits. If my taxes go up, I can't afford to give my employees benefits such as health care. If my taxes continue to go up, than I must fire some of my employees and if they go up to the levels that Mr Obama wants them at, than I lose more employees and don't have enough people to do the work and I have to drop some of my accounts and maybe some company vehicles and machines. I live this reality every day. I can't afford Barak Obama.
2 people like this
@spalladino (17923)
• United States
25 Oct 08
I'm not trying to argue with you but I do have a few questions. You deduct payroll from your company taxes, correct? You also depreciate the company vehicles, cost of gas, cost of insurance, cost of those machines including maintenance? Electric costs, phone, water, licenses and fees? Is your bottom line net profit above $250,000 per year? Have your accounts decreased due to the recession? If the recession continues and your accounts continue to decrease or remain stagnant what incentive would you have to hire additional people? Thanks in advance for your patience.
1 person likes this
• United States
25 Oct 08
No I do not make $250,000 (not yet). If the potential recession becomes reality and continues to grow towards a depression, than I have no need to hire more people. However, If my memory serves me right, the last president to raise taxes during a recession was Herbert Hoover in 1929 which led to, if not caused the great depression.
@spalladino (17923)
• United States
26 Oct 08
That's a scare tactic and not necessarily going to happen now. Do yourself a favor and go to Barack Obama's website and read his economic plans...and some others. He has several workable ideas for stimulating the economy while giving tax breaks to individuals and small businesses (like you have now) as well as incentives for business growth, which you may also be interested in.
@redhotpogo (4436)
• United States
25 Oct 08
Maybe he is referring to lower taxes on businesses. The idea is that if businesses have to pay less taxes they will have more money to pay employees,and can afford the extra help they need. Or maybe he's thinking that if tax payers in general pay less taxes, they'll have more money to spend on products, and goods, causing the need for more jobs.
• United States
25 Oct 08
very well put.
@spalladino (17923)
• United States
25 Oct 08
I didn't see anything on the McCain website about tax breaks for individuals, only businesses.
• United States
25 Oct 08
ah then he would be referring to the first scenario. More money for businesses to pay for more employees.
@missybal (4492)
• United States
25 Oct 08
When companies put a price tag on their products and services they first figure out their total out of pocket expenses... however also the stock market and greedy investors also have a part in cost on the store shelves. When you have high taxes that tax is passed on to the consumers. As it is today we have the second highest tax rate on corperations. When taxes are high on companies they tend to rely more on outsourcing to offset the cost, which leads to sending employment opportunities overseas instead of in the U.S. Many of our companies in the U.S. have branches in other countries due to the high taxes in the U.S. already and can move more of their business out of the U.S at any point in time, and really who could blame them if it is more cost effective and they can make more of a profit in other countries. With lower taxes companies could employ more and also provide better benefits for their employees. 5% of American taxpayers support the majority of our whole economy. The bottom 40% does not pay income taxes at all. Obama's theory would only work if government is providing all the employment, since he wishes to raise taxes on that 5% that is already carrying this country that have the ability to up and leave us. All to provide a check to those in the 40 percentile who do not pay taxes at all right now. When you lower taxes you give the power to the people to grow and build business and employment opportunities. The more our government grows the more trouble the average American has in making ends meet.
@spalladino (17923)
• United States
25 Oct 08
Barack Obama's plan will tax deductions to businesses who move their operations overseas. He also introduced the Patriot Employer Act of 2007 with Senators Richard Durbin (D-IL) and Sherrod Brown (D-OH) to reward companies that create good jobs with good benefits for American workers. The legislation would provide a tax credit to companies that maintain or increase the number of full-time workers in America relative to those outside the US; maintain their corporate headquarters in America if it has ever been in America; pay decent wages; prepare workers for retirement; provide health insurance; and support employees who serve in the military. He also plans to eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.
@missybal (4492)
• United States
26 Oct 08
All newly added by Obama as a reaction to everyone questioning his initial plan and much of which stolen from McCain who said it first. But then all these things that Obama now says he supports are those that have been in play for some time now that he has said he is against because these companies as he says have not been paying taxes due to these deductions. So where is the extra money coming from now that he's trying to reshape his plan? If this is so his plan where is the money to provide for his redistribution of wealth. It's totally conflicting points of view. He'll say anything to get elected. You know the Exxon company provides incredible benefits and employs a large number of people, Yet this is the evil company that he is suppose to be against. What in his record gives us any reason to believe that he would do anything that he says he will when he keeps changing his opinion? I certainly hope that he will not if elected.
@spalladino (17923)
• United States
26 Oct 08
I've looked at both candidate's websites and they've both been modified as the campaign has gone on. There's nothing wrong with developing and redeveloping plans and we certainly don't need an "I thought of it first so you can't plan to do it" mentality when it comes to this country. "If this is so his plan where is the money to provide for his redistribution of wealth." I'm not trying to be flip but I'm getting so tired of that tag line. Since when is paying taxes redistribution of wealth...oh yeah, when the Republicans started calling it that. Seriously, I'm not trying to paint any big business as evil but large corporations like Exxon make up that 5%. The majority of businesses will not be effected, will benefit from Obama's tax breaks to small business along with the other incentives for growth. "What in his record gives us any reason to believe that he would do anything that he says he will when he keeps changing his opinion? I certainly hope that he will not if elected. " What makes me believe him personally is because of how he and I differ. I get up in the morning and go to work for the money. Barack could have taken a job at a law firm after graduating from Harvard and both he and Michele could have been raking in the big bucks but he didn't. He chose to work in the community and to help the people that the majority of this country look down on...the poor. He stood for something then and he stands for something now so I believe that he'll do the best he can for this country.
@spalladino (17923)
• United States
25 Oct 08
McCain's theory, which has been tried before and failed, is that by lowering taxes on business and giving them other financial incentives, they will grow their business and employ more people. The problem with this theory is that, in this already tough economic climate, it's the citizens of this country who need a tax break, not businesses. Giving breaks and incentives to business does not chance the fact that consumption is down, people cannot afford to spend money and that the customer base will not grow so there is no reason why business would grow.
• United States
25 Oct 08
You are wrong. I own 2 small businesses and even if my profit margin does not grow, my (huge)tax burden would be lifted and the money I was paying to the government can now be put towards employee benefits such as health care or new employees.
1 person likes this
• United States
25 Oct 08
Obama's 50% tax credit for small businesses' health care costs for their employees is already a huge boon. Put that together with the fact that 98% of small businesses make less than $250k a year and it's clear that Obama has the better plan for small business.
@spalladino (17923)
• United States
25 Oct 08
totalcomments, I believe you could benefit from a better accountant if you're paying huge taxes on two small businesses...unless you're self employed and not a corporation or LLC.