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yurbud

(39,405 posts) Fri Oct 5, 2012, 12:19 PM Oct 2012

to business people: what do you do with a tax cut when you don't have customers? [View all]

Obviously, you have some, but if you can already produce more than the demand, why would a tax cut make you hire someone else?

What else would you do with the money? Invest in some other business whose product isn't in demand?

14 replies

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to business people: what do you do with a tax cut when you don't have customers? [View all] yurbud Oct 2012 OP

Well if you have less customers and less revenue then you use it to keep paying your workers. dkf Oct 2012 #1

you are a very conscientious employer. yurbud Oct 2012 #2

Actually that's what my boss does for me. dkf Oct 2012 #4

if he didn't pay himself he is a moral miracle. yurbud Oct 2012 #13

So where is the requirement you have to retain workers to get the tax break? JHB Oct 2012 #8

It's not a requirement but it preserves options. dkf Oct 2012 #9

Then it might be a smart idea to make it a little more mandatory than merely "preserving options"... JHB Oct 2012 #11

You sell to customers in other parts of the world. QC Oct 2012 #3

Here's what most often happens. upaloopa Oct 2012 #5

that took me a minute to unpack in my head but it makes sense. yurbud Oct 2012 #6

But what do you do with the extra net income in the low tax scenario? yurbud Oct 2012 #7

You leave it as cash in the business upaloopa Oct 2012 #12

Show the numbers that illustrate a higher tax rate lands up with more take home pay please. dkf Oct 2012 #10

OK, you are a sole proprietor. You do some tax planning for this year before Dec 31. upaloopa Oct 2012 #14