Saturday, October 18, 2008

Obama's Spreading of the Wealth - A Real World Contagion

Here is a real world example of the effect of the Obama tax plan. One of my business partners has a friend who owns a machine shop in the Joliet area that employs about forty people, when the economy slows he has found it better business to find work for his employees who would otherwise be idled by a slowdown. In other words he would lower, sometimes dramatically his profit on jobs that he bid and he would go after smaller jobs than normal in order to keep his workforce together and active. If the Obama tax plans go through the incentive for this man to continue doing this is greatly diminished, he is after all doing more work, spending more of his own time and taking on more risk with each additional machining job.

If Obama's plans are enacted he would not only pay higher Federal Income taxes but dramatically higher FICA taxes on each extra dollar he earns. He has done the math and as his business is going today he would lay off 25% of his workforce under Obama's more repressive tax program, that is ten people. Those ten people would not be paying taxes locally or federally, they would likely draw unemployment and possibly welfare, they would be spending less in our economy. Further this man's business would not be doing those small lot jobs at discounted prices for other small businesses, further spreading this high-tax-induced contagion to other small businesses and their employees. Barack Obama's plans would spread poverty rather than wealth.

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Blogger Publia said...

I know someone who is doing pro formas for his business with the Obama tax plan, and, if th plan is enacted, may take this business down entirely, or it will be sold and the jobs will leave the state.

What are people thinking? I see terrible hardship ahead.

12:06 PM  
Anonymous Northwest Breeder said...

Guy sounds like a shitty businessman, so I guess you have a lot in common!

12:27 PM  
Blogger knowitall said...

Spreading the wealth means higher taxes, no insurance, and more debt. Glad the liberal illuminati are wanting our economy to go down the drain.

6:59 PM  

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