In regard to the impending expiring tax cuts for all, it has been said that if the more than $250,000 income people continue with their cuts, it will help stimulate business and help the economy.
However, that does not agree with what I have observed in manufacturing and other businesses. For instance, I have observed that manufacturers do not normally hire more workers without orders for products. Even when there are more than usual orders, over time for existing workers is instituted or expanded before new hires because it is much cheaper (ridiculously cheaper due to the fact that new hires would require benefits, where as overtime workers already have their benefits).
With the current poor economy, if a manufacture had a windfall in the form of a tax cut, they are not likely to hire because there is no increase in the demand for their products.
On the other hand, it would seem logical that if the public had a wind fall in the form of cash from his income tax return (tax cut for those under $250,000), they would spend it creating orders in manufacturing.
If this is not the way it is, please explain it to me. Otherwise, I will continue to think that a tax cut for the plus $250,000 will more likely only go for increased bonuses for the chairman of the board.
However, that does not agree with what I have observed in manufacturing and other businesses. For instance, I have observed that manufacturers do not normally hire more workers without orders for products. Even when there are more than usual orders, over time for existing workers is instituted or expanded before new hires because it is much cheaper (ridiculously cheaper due to the fact that new hires would require benefits, where as overtime workers already have their benefits).
With the current poor economy, if a manufacture had a windfall in the form of a tax cut, they are not likely to hire because there is no increase in the demand for their products.
On the other hand, it would seem logical that if the public had a wind fall in the form of cash from his income tax return (tax cut for those under $250,000), they would spend it creating orders in manufacturing.
If this is not the way it is, please explain it to me. Otherwise, I will continue to think that a tax cut for the plus $250,000 will more likely only go for increased bonuses for the chairman of the board.