Quote:
Originally Posted by MChat
If business is slow, that's all the more reason for him to keep (in the bank) more of the money rather than let the gov't take it away in taxes. That way he can keep the employees he has so that when business goes up he doesn't have to spend time looking for another worker.
Meanwhile if business slows down and the Gov't comes along and swipes his extra cash, then he has to lay off idle employees because he can't afford to keep them. Then he has to spend time and money on when business goes up to find new employees.
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That makes sense - rainy day fund, versus tax and spend is the route to go - too bad the federal government doesn't understand that concept.