If you don’t want to hear another rant from me you can skip this blog entry. As the politcal season heats up towards November’s election day the tax rhetoric is being spouted by the party faithful on both sides of the aisle. By the end of this blog you will clearly understand which side of the aisle I am on and why.
Democrats are talking up the importance of letting many of the “tax breaks” and especially those of the “richest 1%” to fall back to previous increased rates in 2010. While we can debate all day long what constitutes the richest 1%, let me tell you that increasing capital gains taxes (Which will affect more than 100 million Americans) is a HUGE mistake, and increasing taxes on small and medium businesses is a mistake of epic proportions. Heres why.
If you were offered a check for $2500 (Lets call this reduced taxes, but assume it was immediate and you got a check for $2500) but in return taxes on small and medium business was increased 5-10% and capital gains tax increased 5%, would you accept the check? If I was dangling the check in front on you would you take it? Unfortunately 90% of Americans would. I can certainly understand why. People/families are hurting. $4 gas doesn’t help, and unfortunately financial discipline and financial knowledge is a not a resource that most Americans can count amoung their assets.
The issue is that increased taxes on small and medium businesses means less profits, and less profits means lower wages and decreased benefits. This is NOT rhetoric, this is undeniable fact. As these businesses, many of which are already struggling, try to fight competition and increase growth they HAVE to cut costs. Those costs are almost certainly going to make the working Americans life worse in every way. All of a sudden the $75K a year jobs are $65K a year jobs. Those 35K a year jobs go to 28K a year jobs. Those health care benefits go down every year as the cost of those same benefits increases.
It must be the greedy businesses that always want to make more money causing these problems right? In some few cases the answer is yes, but in the vast majority of the cases it’s because they are TAXED TO DEATH and the average American is the one who pays the price.
Whats worse is that all this is done in the name of the “Average American” – to help them, and to help them deal with the financial burdens that are sometimes too much to bear. It does give them very short term benefits (3 months maybe), but then reality sets in when wages stagnate or drop and health care is trimmed again.
Why can’t politicians see this? Why Why Why? There are really only two options. First, they want to pander to the general ignorance of most Americans when it comes to this matter even when they know better – or 2, they really don’t understand and they think that taxing businesses really will help the situation and make the lives of average Americans better. Either way they are wrong. One way, they are dishonest by pandering, and the other they are just plain stupid. There is NO THIRD OPTION!
I have run many businesses over my short 36 year term on this planet, but one thing I have learned having employed many hundreds of people over the years is that when I make money my employees make money. And when I don’t make money my employees hurt as a consequence because there isn’t enough to go around.
QUIT TAXING SMALL AND MEDIUM BUSINESSES TO DEATH – IT HURTS EVERYONE!!!!!!!!!!!!
Matt Heaton / President Bluehost.com