I was at a downtown mom and pop type pet/garden shop yesterday that employees 12 people and the owner was fit to be tied. Insurance costs have gone up 20% for 2013 and for the first time he had to pay an accountant 1,000 to file taxes with complex regulations that only a lawyer can understand. How anyone thinks small business owners are wealthy is beyond me.
If his insurance costs have gone up 20%, that means one or more of those 12 people will be out of a job.
If I am running a company, I deserve to have pay for my efforts at the end of the day/week/month, etc.
IF I am not making enough money to support me for all my efforts, why would I employ & pay someone else?
The more you carve down the company owner’s income, which is often in a higher bracket for taxes, the less taxes you will collect from such an owner.
Say the owner of a company with 50 employees is paying himself $200,000 per year. It is entirely his capital investment & he is putting in hours from 6 am to early evening, and usually there on weekends. He hasn’t ever missed a payroll and prepays his taxes quarterly—ahead of the actual filing of his tax return.
There were many paydays when he didn’t get paid....but his employees never missed a paycheck.
Company benefits were more generous than other businesses in the city, and in the long run, he had employees who were with him from the first day to the last day.
He is fighting offshore companies who do a higher volume, but a poorer version of what his company produces.
Printing costs, materials & travel costs for his sales employees are on a constant climb. Federal, state & city paperwork required finds him hiring the equivilant of 1.75 employees JUST to satisfy those paperwork regulations. That equals almost 3 % of his entire workforce....just to do paperwork & comply with every changing regulations.
After over 29 years of keeping as many as 65 people employed, he finally decides to retire. Company is bought by global firm and now there are less than 15 people at original location in the USA. When Obamacare hits in January, I expect those 15 to also be out of work. Global company won’t pay for Obamacare for American employees.
He retired about 10 years ago, and is certain that he would have closed the doors with Obamacare in his face. He just would not have been able to pay his people & recover his investment costs.
Sooo- there are over 45 people who are not paying taxes like they did & they are not purchasing goods, services & vacationing like they once did. Some are also retirees, but many were young enough to have to try and find another job.
None of those found a job with the pay & perks that this company offered.
By Federal and state standards, this company was considered a small business.