Reply #99: When you tax only profits, that doesn't increase the cost of doing business.

[clear eye]

The taxes come after expenses including payroll are paid, so it incentivises hiring and expansion, as long as there is demand. The reason lowering corporate and capital gains taxes increases the tax burden on wage earners, especially the middle class, is that gov't is not free. Especially when we are paying interest on an enormous deficit, the money has to come from somewhere.

The big question is why would you want to do something that has been tried to death over the last 30 years and caused economic downturn every single time? Even if you are the owner of a small business, the profitability of your business depends on general prosperity much more than it does on few dollars less in taxes. Even government's ability to help businesses with the cost of health insurance depends on the good revenues that come from a decent economy. Don't you believe in empirical knowledge?