You may have never been in a hiring position, or run a business, but people don't go 'Hey, we got this money laying around from the lower tax rate, lets go hire someone!' Small business may do that when business isn't good or steady, but the rest of companies (GE) don't.
Companies hire someone when there exists an amount of money they can bring in because of that individuals work that exceeds what it would cost to employ them. The exception to that is overhead, which is a category of jobs that must be filled adequately so that the business can do its other work.
Companies benefit significantly more from a steady tax rate that eliminates unexpected future costs than they do from a tax rate that keeps going up/down. That's not from a hiring perspective, that's from an investment in the future of the company perspective. The government waffling on on how, when and by how much to raise/lower the taxes every year is worse than everyone agreeing to raise the rate and lock it in for the next 5+ years.
Tax rates 'creating jobs' is a completely ridiculous argument pushed by the GOP to support low tax rates.
(all of the above is based on the assumption they don't go crazy and double or triple the tax rate all of the sudden...)
Ok, so is this your round-a-bout excuse for GE hiring overseas but not here at home?
At the end of last year (2010), 54 percent of GE’s 287,000 employees worked outside the U.S. As recently as Dec. 31, 2005, a majority worked in the U.S., according to disclosure reports filed by the company. The portion of the company’s revenue that comes from U.S. sales fell to 47 percent in 2010 from 56 percent in 2005.
GE Joins Intel to Advise Obama as Overseas Holdings Expand - Bloomberg
But hey, I'll be generous here and glad to see you have a glimmer of understanding of why companies hire. Bonus: I'm glad you acknowledge that taxes do have an impact both the bottom line of businesses as well as people. Most lefties think higher taxes solves everything and thats about the extent of their thought process. If you have less disposable income, you do less. But then you contradict yourself by acting if it's some talking point. Who gives a fuck what republicans think? This is economics, which taxes are an inherent dynamic that needs to be accounted for. Math still works whether you are a Libertarian, republican, or democrat or whatever else.
On with the show.
Anyway, businesses do hire more workers (such as the linked article above) when the demand calls for it and is profitable for them -which GE has been. Thats indisputable. Furthermore, you have to look at the many factors that are part of economic landscape... everything ranging from political stability and governmental policies to investors to cash flows to determining strategic direction to tactical implementation. An entire host of factors go in to the decision making process, but the bottom line is that if there is profit to be made, they will hire.
So tell me this, are you willing to hire more people if you know your corporate tax rates are going up from say 28% to 40% or more? This affects your bottom line and makes it more difficult to hire additional help because you have less to work with while meeting all of you other obligations. I'll be very clear here: not advocating that businesses shouldnt pay any taxes. So instead of hiring 100 workers to increase production, you can now only afford 80 due to tax increases. That's math and that's how it works.
Caveat: Taxes do not change on a yearly basis. They are usually an election issue and whoever has the power then works on determining whether or not to raise or lower taxes. Example: bush tax reductions.
If you really want to help the economy out, then you close the loopholes and simplify the tax code. That creates ideal conditions for which businesses can thrive, which in turn, hires more help, which broadens the tax base, and results in having more responsible people contributing instead of leaches who have or are becoming accustomed to a lazy lifestyle aided and abetted by a deranged ideology that promotes it.
Glad you agree that Owebomba's policies have contributed significantly to the uncertainty in our current economic morass.
