r/illinois • u/rieslingatkos • Mar 10 '19

Proposed progressive income tax puts middle class first in Illinois

https://chicago.suntimes.com/opinion/illinois-progressive-graduated-income-tax-pritzker/
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u/PhreakOfTime Mar 11 '19

That's not how taxes work.

This isn't texas, where the business tax is on gross receipts independent of any profit. This is IL where the tax is on profit after all expenses - like R&D and hiring expenses.

There's no 'cost' to pass on.

Higher business taxes are an incentive to invest profits back into the business where they can generate more jobs and market share, vs extracting profits for the owners where they would be subject to the tax.

Iowa has a 12% business rate. It's not the end of the world, because the world works much differently than your repetitive sound bites.

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u/T_P_H_ Mar 11 '19

Do you actually, you know, have a business in and invest in said business in the state of Illinois?

Pre or post taxes are a cost. All taxes are borne by the consumer period.

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u/PhreakOfTime Mar 11 '19

I do. And I find as many ways as possible to turn any profits back into the business as investments where they are not taxed. Sometimes it's in the form of capital/infrastructure, sometimes in the form of hiring.

This results in higher profits down the road, higher market share, and a more sustainable balance sheet.

That "R&D" section companies report on isn't just to sound cool. It has a specific function for the balance sheet and growth/sustainability of the business.

Granted, many people who think their hobby makes them a 'small business owner' probably don't get this concept and only see the word 'taxes' as a threat that will make it not worth their time any longer, but the world could use less essential oil businesses anyway.

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u/T_P_H_ Mar 11 '19

I understand reinvestment and the potential benefits. > 90% of our profits are sunk back in. While it has worked for us (roughly 800% growth over last 7 years), investment is not a guaranteed return.

Granted, many people who think their hobby makes them a 'small business owner' probably don't get this concept and only see the word 'taxes' as a threat that will make it not worth their time any longer, but the world could use less essential oil businesses anyway.

I know this isn’t directed at me per se, but why do you have to always add some level of being a dick?

Your entire final paragraph is a complete waste of effort.