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


To: combjelly who wrote (427618)10/17/2008 5:30:38 PM
From: TimF  Read Replies (1) | Respond to of 1578758
 
So very every small increase there is no disincentive right. Just keep adding .01% to the tax rate until you get 100% and all the small businessmen will be happy right? Since no one would stop investing or working to make more money for such a tiny tax increase in your opinion...

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If you have a chance to make more, you also typically have to take risks, and accept delay in getting your money back, and for small businessmen they may have to work harder and longer.

Its not like its $100 on the ground, and they are told if they bend over and pick it up they will have to give four tenths to the government. Sure they will likely pick up the hundred anyway, and be happy to have $60.

But if they have to invest capital, work harder and/or hire new employees who they will have to pay for, and then maybe eventually make a profit on the effort. Every time you take away more and more of the potential profit, you reduce the amount of people who will make the effort and take the risk.