How to avoid tax on high income: Create jobs!

Tue, 10/26/2010 - 23:22 -- John Locke

The debate about increasing taxes on high-income people rages on in both Washington D.C and Washington State. Here in the state, there's an initiative on the ballot that proposes an income tax on people earning more than $200K (or $400K for joint filers). Meanwhile Congress can't seem to extend the Bush tax cuts for over 97% of the population, because a certain party wants it extended to the 2% of the country that earns more than $250K.

And the single reason I hear for not enacting these taxes? "Because you're taxing the people who create jobs!"

What kind of jobs are they talking about? I'm a small business owner. I employ people. I create jobs. And my income is currently nowhere near $200K. If it was, I'd be creating more jobs.

How exactly does taxing high-income people interfere with creating jobs? It seems to me it would be an incentive to create jobs -- because you could lower your income to get under that cap! If I'm making so much money, and I can't figure out a good job to put somebody to work -- well, let's just say that's a problem I want to have. I'll happily pay some extra tax to help get our country, and our state, back on track. I'll happily contribute to making the government fiscally responsible -- by giving them more to work with.

Meanwhile, the only jobs I can think of that might not be tax-deductible are things like housekeepers, gardeners, things to keep a house running. And while those folks need jobs too, I really don't think that's a class of job we need to protect.

Raise those taxes on high incomes, I say. It would encourage small businesses to hire more people!

Comments

Submitted by Guest (not verified) on

What most of those against taxes on incomes over $250k do not realize is that if your business make $250K per year in revenue, your new income (taxable) is not going to be $250K unless you have no expenses.

In that case you could hire 5 employees at $50K per year and reduce your taxable income to Zero.

You would create five jobs.

Andrew

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