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How Should The White House Handle The Bush Tax Cut Debate? (VIDEO)

11/16/2010 3:20 pm 1 comment

Roland Martin and the “Washington Watch” roundtable to discuss the Obama Administration’s handling of the debate surrounding the Bush tax cuts.

President Obama’s Senior Advisor, David Axelrod gave the impression that President Obama would be open to compromise on the Bush tax cuts. but President Obama clarifies his position saying “That’s not what we ment.”

WATCH: How Should The White House Handle The Bush Tax Cuts Dialogue?

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jack of PA

Roland, Please explain something to me.

Let's say I own a business. Current demand doesn't warrant that I hire additional workers. I just don't need them. This has noting to do with my tax rate.

Let say that the economy improves and demand now warrants that I hire additional workers to meet the demand. I'm going to hire additional workers to meet the demand. Regardless of my tax rates.

If I hire additional workers, it comes off my bottom line and is not taxed. If instead, I just pocket the money that I would have used to hire additional workers, I will be taxed for it. Isn't it then a tax incentive to me to invest in hiring workers rather than just pocketing the money?

What am I missing here?

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