Originally Posted By: Lilo
Why was there not an explosion of demand and hiring during the years that the Bush tax cuts were in force?
This war is absolutely draining the treasury. Every dime of the trillion dollars spent so far is borrowed. So it's not accurate to say we're spending money on the war, when really we're borrowing every second of the day to finance this war. REally it's the 'windfall' costs that haven't yet been accounted for that's caused so much hesitancy in all the markets and helping to freeze hiring.

Originally Posted By: Lilo
Why was there not an explosion of demand, investment and hiring this year when the estate tax is zero?
In addition to the factors I mentioned above, all of the markets are quagmired right now because of the literally THOUSANDS of regulatory costs that are set to take place under the Obama administration. Hiring markets, financial markets, housing markets, all of them are stagnant right now in anticipation of these astronomical rises in regulatory costs i.e universal healthcare program to name one of hundreds.

Originally Posted By: Lilo
Less than 2% of tax returns reporting small business income are filed by individuals or couples in the top two income brackets. 98% of small business owners will be unaffected by the reversion back to Clinton era top personal income rates.
The problem is that taxpayers who make say 6 figures a year already pay so much in taxes as is when compared to the rest of the population.

Everywhere you hear stories of people who make say 500 thousand a year talking about how it's not worth the time to try and make more because it will simply be seized in taxes, and this was in the supposedly conservative Bush adminstration I'm talking about, the problem is even more compounded now when you add to this all of the regulatory costs that are set to be inacted by the Obama administration.

Small businesses face an annual regulatory cost of $7647 per employee and you can bet this number is about to go through the roof. I can have my accountant at your bedside in 20 minutes to show you line-by-line the increased regulatory costs facing my business if you'd like. ;))