Taxes and Profit.

[ZombieHorde]

Most paid work generates wealth. Many right wingers complain that taxes reduce the wealth generated by the worker. And this is true; taxes do that.

However, profit also reduces the wealth generated by the worker. For example, a fast food worker may generate $20 or more each hour worked after other costs, but only receive $8 per hour. Taxes may reduce the wealth you generate by about 25%, but profit often reduces pay by a much higher percent than that.

Taxes help businesses by educating the work force, building roads, implementing a currency system, providing food stamps, etc.

Profits don't help businesses at all. They just suck money out of the economic cycle.

So if taxes are bad, then profit is terrible. We shouldn't be talking about cutting taxes, we should be talking about cutting profit.

[DrDan]

1. yow

profits allow for business expansion, employee bonuses and salary increases, and returns to stockholders. All of which improve the economy.

Sure - some profits are skimmed for ridiculous exec pay - but not always.

"profits don't help businesses"? - wow!