The Practical Philosopher's Blog

Using the practical application of timeless wisdom to address modern issues

Taxcuts and the ‘Rich’

The President wants to raise taxes on those who make more than $250K while continuing our less-than-stellar tax levels for the few others of us under that figure that actually pay taxes.

This is another reason why we will never see any significant new job growth for as long as Obama and collectivists of his mentality continue to advance these broken economic ideas.

This economy is squarely depressed because of this Administration’s policies- not Bush or any other scapegoat. The market is rationally assessing Obama’s anti-business outlook and burdensome/costly future policy statements (Expire Bush tax cuts, Cap and Tax, Negative ObamaCare impacts coming up, Green ‘jobs’ focus, etc.) as toxic to taking any business risk or investing for growth. And why wouldn’t they? Where’s the upside? There is none. All of this Administration’s tone is how anyone making more than the poverty level should be ashamed of their success and get ready to hand over significantly more of their hard-earned profits to Big Government. Temporary, tepid tax measures will not motivate job growth. Higher taxes will not motivate job growth. Temporary, minute infusions of cash for disproven Keynesian ‘growth’ theories (also called history) will not motivate job growth.

Now on to the term the ‘Rich’. How long will politicians in our country try to push this resentful and Feudal term? Everyone in this country should be unashamed to say they want to be ‘rich’. America is the land of opportunity for those that want to work for it. No one here is born into some aristocratic class and the rest of us are stuck being peasants. The real meaning of the term ‘Rich’ class is the Productive class, the Investor class, or the Job Creation class. Where does Obama think the jobs come from? The very people he demonizes!

Just in case people are not aware of it, the top 1% of Americans pay 40% of our taxes already- a patently unfair share as it stands now. The top 10% pay 70% of our total taxes! And he thinks they need a tax hike?! This is unbelievable!

Democrats in Congress have just made an announcement that they are running away from/avoiding this issue like everything else unpopular they want to do because an election is coming up. If it’s not okay now, it’s not okay 6 months from now! This will still be hanging out there and the Investor class will still be sitting on cash (and therefore job creation) because of it.

Send a message this November! Vote!

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Filed under: Business, Politics, , , , , , ,

Obama Still Has No Idea How Our Economy Works

Leaving aside an 11th hour ‘conversion’ by Obama to seeing the value of (some) tax cuts, the cuts he does propose are targeted, temporary, and will primarily only benefit big business.

This ploy to pretend he is suddenly for business will not affect the largest component of our economy- small business owners.

If we convert the ‘Bush tax cuts’ into the ‘Obama tax hikes’ on top of this, things will get even worse. Small business owners tend to file taxes as individuals. They may make $500K in revenue/income, but if you plow $450K of that back into business expenses and taxes, the actual $50K you might use to live on is not much.

The bad news is that their income falls into the hate-the-rich category that Obama uses as examples of morally bad guys that owe money to his unskilled, unproductive, and/or un-ambitious core-constituency.

The punishment of small business owners will be in the form of increased taxes for govt welfare, subsidies and general, short-term vote buying. They will still have no long term (critical!) incentive or confidence they can, or should, risk their money to expand their businesses. The only long term-anything that Obama and his like-minded Democrats will accomplish is long term damage to our economy and founding principles with their collectivism.

Note to the Prez: 70% of our jobs come from SMALL businesses! So how will this current ‘tax cut’ ploy and higher taxes in Jan2011 create jobs? They won’t. Again.

And we’ll continue to suffer economically as a country for their lack of wisdom and leadership on this issue.

Somebody in White House should tell the President: It’s the results, stupid- not the rhetoric.

Filed under: Economy, Politics, , , , , , , ,

More Proof Why Government Can’t Run Businesses

Once again, it’s painfully evident to everyone except the Obama administration that the realities of politics and the realities of running a business are completely different and virtually always are. 

The motivators of politicians (vs. leaders) are votes, public perception, and the pursuit of power. The motivator of businesses is profit from the sale of their goods and/or services to the marketplace.  The restructuring of a rigid, non-responsive and failing company so it can more efficiently serve it’s market is critical if that company wants to survive. So, it was amazing to read:

GM proposed moving out if it’s Detroit’s Renaissance Center HQ to its sprawling suburban tech center, arguing that the move would save money and would symbolize a commitment by top brass to be more involved in the company.

But this would involve some creative destruction in the marketplace to create a sustainable, long-term outcome of a viable company instead of a dying one. This, however, was not a consideration at all to the politicians in the white house:

But the “hands-off” White House snuffed the idea, opting to protect Detroit — a key political constituency of the Democratic Party. “Are you out of your mind?” Rattner quoted Brian Deese, who has been heavily involved in auto policy, as saying. “Think what it would do to Detroit.”

This is why Govt can’t and should not try to run businesses or be an actor in the market place. This is why, if GM ever recovers, it will take much longer than it would have in a free-market situation.

And the White House wonder’s why they have not been successful in creating jobs?

Filed under: Business, Economy, Politics, , , , , , ,

Obama Now Thinks He Can Influence 4 Million Jobs

I heard on the radio the other day that the upcoming Obama administration now thinks they can create or save up to 4 million jobs with their stimulus package. I researched it on the Internet and I did, in fact, find that this statement and plan was submitted by the chair of his council of economic advisers, Christina Romer, and by Vice President-elect Joe Biden’s chief economic adviser, Jared Bernstein.

First, as a principle, government doesn’t create jobs. It of course has the jobs that exist for the administration of a government, but in the private sector, they don’t create jobs- they only destroy or strangle them by the amount of taxes they take away from businesses and individuals. Only private individual create jobs. As I put in my previous post “Proposed ‘Stimulus’ Plan Won’t Help Economy“, they can do some real good in reducing government’s drain on our economy by reducing corporate and individual tax rates- but they do not create any jobs!

Second, I am concerned by the weasily language used on this issue- “…create or save…” X-millions of jobs. Why do I feel like it will be an outcome of 500k jobs ‘created’ and 3.5M jobs ‘saved’? What the heck is a ‘saved’ job other than a statement of pretend achievement? Either you help grow our economy or you don’t. Either, after a quarter or a year, we’ve seen X-number of new jobs appear or we don’t.

This whole approach sounds like a political way to talk-the-talk about our economy (which a Socialist would do), but not walk-the-walk (as a free-market American would do) on really creating anything. I did not vote for Obama, but as our President, I really hope gains enough wisdom (not book-intelligence) to see the difference and lead with American values.

Filed under: Politics, , , , ,

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