Dec 17 2009

Soaking The Rich

Category: Uncategorizedamuzikman @ 8:50 am

Class envy in our country has been planted, cultivated, and sadly, continued to grow almost unchecked.  In my opinion it is a useful tool to many of our current crop of politicians who wish to impose government-enforced equality of outcome rather than the more traditional view in this country of equal opportunity. This is apparent to no greater degree than with the subject of taxes and wealth.

Neal Boortz has written a brilliant piece about this subject.  It is about a fictitious company and a speech given by it’s fictitious president.  But I assure you the subject matter is altogether quite real.  Please read it all!

9 Responses to “Soaking The Rich”

  1. Bill Colton says:

    I can testify to this thinking. I have 31 employees and am an S-Corp. I will show an income of approximately $ 500K this year…and at the same time, I personally went $ 400K in the hole trying to keep all my employees working in a down economy. If we have our income further diminished – I will be forced to start shedding employees. That will move people from my “health care” program to the new one! I know they can’t afford cobra. In a recent speech – we were told that we will be able to write off 50% of our health care in this new plan. Great..I am currently writing off 100% (except for myself – you can’t write that off as an employer – it is income to you). Since I am currently paying approx $ 250K for health care – this means I will have an additional income tax on $ 125K. Mind you, this will also make it look like I am making another $ 125K per year on my personal tax returns! I am just getting richer all the time.

  2. amuzikman says:


    So would it be safe to say, based on your own business experience, that you find the article to be accurate?

  3. harmonicminer says:

    Almost none of the people making these laws have every been in Bill’s position, running a business, trying to show a profit and be fair to employees all at once. They simply have no idea of the results of their decisions…

    Meantime, Bill’s story is multiplied millions of times throughout the nation, since businesses of his size makeup an enormous share of the nation’s employers and job creators.

  4. Bill Colton says:

    Amuzikman – absolutely accurate. I speak with a lot of business owners and harmonicminer is correct – it is exponential. Additionally, as I am looking at forecasting next years business for my principle – I am asking questions of quite a few clients (I have about 900 active clients)- and I am hearing themes.

    1. I am not going to make any moves to build, grow, inventory, invest etc. until I know my financial model. There are too many things in play to know that model – health care, cap and trade, bailout taxes (still to come), tarp taxes (still to come), etc.

    2. I am not going to hire ANYONE until I can’t “not hire” someone. My employees want to make back some of what they have lost over this past year, and they still aren’t working full time.

    3. I am considering moving my manufacturing off shore – we are increasing costs here to the point that I can’t be competitive. I have to add 8% + 5% + who knows % – into my labor cost, when offshore companies I am competing with don’t have to.

    People in the business world cannot plan a growth strategy on an unknown and shifting financial platform.

  5. harmonicminer says:

    Bill, if you don’t mind, I may take that last comment and just turn it into a post in a couple or three days. It is perfectly illustrative of what’s restraining our economy and the “recovery.”

  6. Bill Colton says:

    I am never sure whether to use harmonicminer – or your real name in here. I will stick with harmoniciner unless you direct me otherwise. It feels a little silly – although it probably makes more sense for those that don’t know you.

    Feel free to use any part of the statement. I assume as soon as I place it in here it is in the public domain anyway.

    Merry Christmas to you my friend.

  7. Darryl says:

    Read the article and loved it- it was impressively compelling for such a long article. I don’t skim anything!

  8. JC says:

    Just to add to Bill’s already excellent illustration, I ran a large consumer products company that happened to be privately held. I had over 1,000 associates and sales of over $1 Billion…but the issues are exactly the same. When you are scratching and clawing to find every dollar you can to turn into profit, or in our case, put to work growing your business ( and therefore, building more plants, hiring more people, rewarding current associates, etc.) this type of situation wreaks havoc on aggressive strategic planning. I couldn’t agree with harmonicminer more, the people making these decisions have NO IDEA how to run a business because they never have. And their leader has never had to meet a sales and profit objective, write a strategic plan, be held accountable for growth, hiring and firing. He is totally clueless…anyone would be that has never been involved in a business at a reasonably high level. I am now retired, but am grateful that I don’t have to deal with it directly as the President of the company. Now I only have to worry about retaining my retirement savings!

  9. amuzikman says:

    JC and Bill

    What a shame your expertise is largely unappreciated and your role so misunderstood and so vilified.

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