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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (159615)	1/31/2003 7:11:22 PM
From: TimF	Read Replies (2) \| Respond to of 1582738

You make a million and owe the gov half, UNLESS you start a business, hire people and travel, buy equipment, entertain, etc. then the govervn picks up half the cost and you only owe 250 G's, minus whatever you sock into an IRA, etc.. If you have a million dollars and are thinking about starting a business you either have already paid taxes on it or you still have to pay taxes on it. You can't avoid the taxes by using it to start up a business or by buying stock and coporate bonds. If the tax rate goes up, your expected after tax return from starting a business or from stocks and bonds goes down. If your expected return goes down you invest less. Even for the person who already has a company and has the $1mil as revenue it only makes sense to hire new people or make new investments if you can make a profit on the money you spend. The expected after tax return on expanding your business also goes down with less return you have less reason to risk your money on expansion. Thats economics 101. And we should not encourage misers. Hoarding money by the rich does not a healthy economy make. The rich do not put their money under a matress. They either spend it or they invest it. If they invest in stocks and bonds they fund the expansion of the companies that sell those stocks and bonds. Even if they place it in a bank account they give the banks money to lend which goes to spending or investment. or else we lose portions of our medicare or SS we may need to live on later in life. These programs are usustainable in their current forms. At some point benefits will have to be cut. Unfortunatly I don't think Bush is going to do that. Not to mention education and health care cuts Total spending in our country on education and health care is on a long term uptrend. Plus more pollution under Bush Not true. Tim