Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RetiredNow who wrote (321080)	1/16/2007 12:50:11 PM
From: combjelly	Respond to of 1576767

"but you hire based on demand and profitability of servicing that demand." That has been my experience. "Taxes are only one variable of the equation of profitability and should not be the primary determinant of your business strategy." Yep. Just another cost. I suppose it is possible that if taxes are high enough, then the extra business isn't profitable. But you would have to have really thin margins or your personnel aren't very productive. "If it is, then you have bigger problems than taxes, as you won't be in business for very long." Precisely. Which is why I am dubious he actually owns a business. He might have started one, but it didn't last long. Just look at his last post on the subject. High demand, in the past he has described high margins and no competition. Apparently his customers don't mind when he cuts back on business when taxes are raised. This just doesn't pass the smell test. Even in businesses where kickbacks and bribes are the norm, not meeting clients needs is a recipe for replacement.

To: RetiredNow who wrote (321080)	1/16/2007 1:44:44 PM
From: longnshort	Read Replies (2) \| Respond to of 1576767

been in Business since 72

To: RetiredNow who wrote (321080)	1/16/2007 5:55:20 PM
From: TimF	Read Replies (2) \| Respond to of 1576767

Taxes don't have to be the primary determinant of business strategy in order for raising taxes to have an overall harmful effect. The effect doesn't have to be the biggest effect in order to have a negative effect at the margin whether your looking at the whole economy, or a particular firm. It might well make sense for Longshort's company to cut back one or more person's hours (including cutting them to zero, i.e. firing them) when his taxes are raised. The fact that taxes are mostly likely not the single biggest factor for him is irrelevant to this point.