Re: Obama XV: Now, with 20% more rage
I agree, it is healthy, we should make sure we're all distinguishing between efficiency, growth and expansion. Any company should pursue efficiency and theat certainly is the pursuit of dollars, albeit ones that are already in your P&L. Growth is good, requires primarily variable expense, can be retracted and it is possible to estimate the tax impacts.
This discussion started regarding taxes, regulation and the general mood of business to invest. Expansion isn't variable expense alone...I think folks might be thinking that expansion is the same as growth...while a company that expands may grow revenues, they also grow debt and expenses.
I know some will discount the other unquantifiable factors but for a small business, those are real considerations...sometimes people would prefer to buy a beach house or a sports car vs. open up another office and increase the workload.
I don't doubt that taxes constrict businesses and constrict the economy... most of these businesses take their money and feed it back into further improvements because they want a bigger slice... this a healthy phenomena.
That being said, on the micro-level, yes risks change the equation, but generally people will still chase the next dollar.
Now of course, if you increase the rates on business income then you can push a company into the negative territory as its always income - expenses.
I agree, it is healthy, we should make sure we're all distinguishing between efficiency, growth and expansion. Any company should pursue efficiency and theat certainly is the pursuit of dollars, albeit ones that are already in your P&L. Growth is good, requires primarily variable expense, can be retracted and it is possible to estimate the tax impacts.
This discussion started regarding taxes, regulation and the general mood of business to invest. Expansion isn't variable expense alone...I think folks might be thinking that expansion is the same as growth...while a company that expands may grow revenues, they also grow debt and expenses.
I know some will discount the other unquantifiable factors but for a small business, those are real considerations...sometimes people would prefer to buy a beach house or a sports car vs. open up another office and increase the workload.