Looking at the fiscal cliff dilemma from an accounting perspective, raising taxes for the wealthy should actually benefit the economy. Every dollar spent on creating jobs is a business expense, and therefore already tax deductible, so the more a business invests in job creation, the fewer taxes they will pay. Investing in their business therefore becomes even more of an incentive for the business owner.
A business with a minimum $250,000 yearly NET income (the minimum for the proposed tax increase) is not a tiny mom and pop store. In order to show a quarter million dollars of net income, a business gross revenue is of course a whole lot more, since all expenses such as buildings, inventory, payroll, utilities, maintenance, etc. are deducted as business expenses and only the income left after these expenses is subject to taxes. Someone with a minimum of a quarter million dollars net income a year should be required to and be able to pay a higher tax rate than an office worker, mechanic or teacher.
— Dorle Harness