Why the Buffet plan could kill jobs.

[Charles_Main]

It is easy to get Americans to agree that the Super Rich should at least pay as much as everyone else in Taxes.

However How many of those Americans would agree with Higher Taxes on the rich if they knew this little fact.

. Small businesses could get hit with this tax, as many file as sole proprietors or S corporations, which is similar to filing as an individual.

At least 75% of small businesses file taxes on business income at individual rates, according to the National Federation of Independent Business.

If you have ever run a business you know a few things that Paying basically as individual makes really suck.

First they teach you in Business school that most Businesses should keep enough cash on hand to operate for 3 to 6 Months. To get you through the lean times.

When sole proprietors or S corporations Want to save money like that from year to year. Money they can not really spend, but need to keep liquid. They end up having to pay Taxes on it as if it were Income even though they can't spend it.

If a business plans to Add on in the next calendar year, and plans to spend 200k doing it. They often times also end up being taxes on Income that was not really income as it will indeed be reinvested in the company.

There are more Examples of how sole proprietors or S corporations get fucked by the Tax code but I am not going to list them all. The Point is, that just because a sole proprietor or S corporation shows a 1 million dollar profit, does not mean they actually had any where near 1 Million dollars of Person Income from it.

If Obama succeeds in Raising taxes on individuals making over 200k, and we do not find a way to exempt these Businesses, It will Destroy what little Job Creation we have.

 

[The T]

It is easy to get Americans to agree that the Super Rich should at least pay as much as everyone else in Taxes.

However How many of those Americans would agree with Higher Taxes on the rich if they knew this little fact.

. Small businesses could get hit with this tax, as many file as sole proprietors or S corporations, which is similar to filing as an individual.

At least 75% of small businesses file taxes on business income at individual rates, according to the National Federation of Independent Business.

If you have ever run a business you know a few things that Paying basically as individual makes really suck.

First they teach you in Business school that most Businesses should keep enough cash on hand to operate for 3 to 6 Months. To get you through the lean times.

When sole proprietors or S corporations Want to save money like that from year to year. Money they can not really spend, but need to keep liquid. They end up having to pay Taxes on it as if it were Income even though they can't spend it.

If a business plans to Add on in the next calendar year, and plans to spend 200k doing it. They often times also end up being taxes on Income that was not really income as it will indeed be reinvested in the company.

There are more Examples of how sole proprietors or S corporations get fucked by the Tax code but I am not going to list them all. The Point is, that just because a sole proprietor or S corporation shows a 1 million dollar profit, does not mean they actually had any where near 1 Million dollars of Person Income from it.

If Obama succeeds in Raising taxes on individuals making over 200k, and we do not find a way to exempt these Businesses, It will Destroy what little Job Creation we have.

And we will see more layoffs, more unemployed and no growth.

The entire tax structure that taxes income needs to be deep sixed, the 16th repealed, and consumption tax enacted.

 

[ABikerSailor]

Actually, it seems more like you can increase your net worth significantly if you lay off a few thousand people.

David and Charles Koch, co-owners of Koch Industries and primary financiers of the Tea Party, have amassed one of the world’s largest private fortunes and Koch Industries is the second largest privately held company in America. Koch sycophants in the media have attacked anyone daring to criticize the company because Koch Industries employs nearly 50,000 people, according to a study produced by Koch Industries last week. In the last two years, David and Charles Koch have jumped from each being worth $16 billion to now being worth $21.5 billion. That means together they went from being worth $31 billion dollars to being worth $42 billion today. David is now the richest man in New York City, and the pair are now on the nation’s top ten list for richest Americans.

However, at a time when the Koch brothers were enjoying spectacular financial gains, Koch Industries laid off well over 2,000 people. Using the same approximate “jobs multiplier” Koch Industries used in its study last week, that means Koch Industries extinguished nearly 8,000 jobs in recent years:

http://www.alternet.org/newsandviews/article/458013/as_tea_party_koch_brothers_earned_an_extra_$11_billion_in_recent_years,_they_laid_off_thousands

 

[Charles_Main]

Actually, it seems more like you can increase your net worth significantly if you lay off a few thousand people.

David and Charles Koch, co-owners of Koch Industries and primary financiers of the Tea Party, have amassed one of the world’s largest private fortunes and Koch Industries is the second largest privately held company in America. Koch sycophants in the media have attacked anyone daring to criticize the company because Koch Industries employs nearly 50,000 people, according to a study produced by Koch Industries last week. In the last two years, David and Charles Koch have jumped from each being worth $16 billion to now being worth $21.5 billion. That means together they went from being worth $31 billion dollars to being worth $42 billion today. David is now the richest man in New York City, and the pair are now on the nation’s top ten list for richest Americans.

However, at a time when the Koch brothers were enjoying spectacular financial gains, Koch Industries laid off well over 2,000 people. Using the same approximate “jobs multiplier” Koch Industries used in its study last week, that means Koch Industries extinguished nearly 8,000 jobs in recent years:

http://www.alternet.org/newsandviews/article/458013/as_tea_party_koch_brothers_earned_an_extra_$11_billion_in_recent_years,_they_laid_off_thousands

WTF does that have to do with this? If they laid off a couple of Thousand people. Then clearly they are not a small Business and therefore not in the Group of people I said we need to protect from the Buffet plan and Obama's Tax the "Rich" Agenda, if we were to implement it.

Another group we need to watch out for is Retiree's. There are many of them well off enough to have a nest egg that could last them years living off the Interest, but does not mean their are Rich as they have to ration their Money so they don't run out. Those peoples income is mostly Capital Gains, and forcing them to pay some AMT at the highest Federal Income Tax Rate, could make their Retirements go from Comfortable to Struggling to pay the bills.

Just little things, Obama ignores when he Lumps anyone who lives off Capital Gains alone, or earns more than 200k Into a group and labels them "Millionaires and Billionaires"

My Boss runs a 2 Million dollar a year Company, and I know him personally, have for years. Despite having good years on Paper. He has never been what I would call rich. In fact I don't know how he deals with all the stress. It's been nothing buy 19 years of Struggling to make ends meet, both on the business side and the home front.