Posted on 10/16/2008 1:45:36 PM PDT by GauchoUSA
TOLEDO, Ohio - “Joe the plumber,” the new face of middle-class America after Sen. John McCain made him famous in Wednesday night’s presidential debate, isn’t technically a plumber, and he probably wouldn’t be adversely affected by Sen. Barack Obama’s tax plan. But the issues he has raises are important and worth examining for their impact on small businesses...
(Excerpt) Read more at msnbc.msn.com ...
The real issue, probably too complicated for the average news anchor to comprehend, is that for many small businesses all net income is taxed at the individual rate. For sole proprietorships, partnerships, LLC's and S Corporations the total net income is taxed at the individual rate. And that net income includes increases in business assets that aren't available to the person who runs the business, but are essential for operation of the business. Put simply, if you own a business and use your profits to buy inventory or equipment to expand the business you still get hit with the tax. So if you want to, for example, buy an excavator to dig up pipes and your business made a total of $200,000 in profit you can't afford to buy the excavator since you owe nearly $50,000 in taxes. (the exact amount depends on your filing status, child credits, etc.) Obama's plan to increase the tax burden just makes it harder for businesses to expand, and that hurts everybody. Also, many people just don't understand that you can have a business with taxable income of $250,000 but still be unable to take any money out of it for yourself, since you need the income to fund the operation and expansion of the business.
Of course, the liberals will counter that you can avoid the tax consequence by borrowing the money to buy the excavator - because then you have a matching liability to offset the increase in your assets, and you can write off the interest, and you can go ahead and buy the excavator before you earn the profits, and then pay off the loan later - and take the depreciation as you pay the loan off, etc.
Of course we have just seen the consequence of doing that writ large - when everybody buys everything on credit all it takes is a minor economic slowdown and we're all on the hook for billions of dollars to save the banks that made the loan that the borrowers can't afford to repay.
It doesn’t matter. In Ohio, you can be a residential (not commercial) plumber without a license, if you are working for a company who’s head has a license, for exammple. Once you move up and buy the company, then you need a license.
But this story says you must be licensed as a plumber’s apprentice or some such, and Joe is not. “Your registration papers please!”
How did those vultures manage to get Joe’s divorce records?
“Of course, the liberals will counter that you can avoid the tax consequence by borrowing the money to buy the excavator - because then you have a matching liability to offset the increase in your assets, and you can write off the interest, and you can go ahead and buy the excavator before you earn the profits, and then pay off the loan later - and take the depreciation as you pay the loan off, etc.”
Not to mention the time it takes to do all the accounting (or cost to pay an accountant / tax consultant) for a small business, to satisfy the IRS, and our insanely complex tax code, which would be more productively spent on the business itself.
Of course, he’ll be affected. Every working American will be harmed. Less jobs for everyone.
More of our dollars to those who pay no taxes at all.
What a stupid analysis. The point of what Obama said is what Obama said: that he thinks it’s a good thing to “spread the wealth” around by means of a Red Robinhood strategy.
That is all.
This morning I got a very pleasant surprise listening to the Radio, and not from conservative radio. Every morning I usually listen to 870AM with Gallagher, before it was Laura Ingrahm, I don’t know what happened to her, Where is she now? Anywho, today, flipping through the radio channels I stopped at 102.7 KISS FM which is hosted by that guy from American Idol, which his name escapes me, and in the morning it’s this ‘hip’, ‘cool’ guy called Valentine.
So... He had a guest, a professor of economics from UCLA, yes I live here in Southern California. Valentine then asked him about the economic crises and why we are where we are, and the professor covered the obvious points. Then Valentine asked him: ‘leaving politics aside, to your opinion, which candidate’s economic rescue package is the best?’ Simple straight forward questions all anchors should be asking Obama. The professor then went to say: ‘both have positives [I suppose he meant stuff like cutting spending and programs that are not working] but... what scares me about Obama’s plan is that he will raise taxes and job growth will be stumped. People think raising taxes on the rich is not bad, but that rich person [earning more than 250,000 per year] will not be able to hire new employees or even keep the current employees.’
Obviously after this liberal morning show host heard that they immediately cut into a commercial break, without saying anything or questioning his stand on the economy. When you are presented with facts, you can only Clinton yourself out.
I’m afraid this go way beyond snobery.
This is a “high tech lynching” of plumbers who deign to think for themselves.
Average Americans should be scared as heck about the America we will live in under President Obama and his minions in the press.
No kidding. The MSM has been in a financial depression for the last 3 years. They are telling the rest of us the water’s fine. Come on in!
Hey there NBC branch of the DNC; the issue is the quote: “When you spread the wealth around, it’s good for everybody.” IT’S ABOUT OBAMA’S SOCIALISM (Or is it communism or Marxism? Sometimes I mix up my isms.)
It’s Marxism and he and his are trying to beat that dead rotting corpse of a horse across the finish line. A totalitarian paradise awaits his followers!
This is typical rhetoric of the left, they know Bozo was hurt by his socialist answer to Joe's question and they absolutely know McCain cost Bozo some votes last night by bringing it up. Whether or not the business he wants to buy will make 250,000 + per year is not the problem,the problem is that if he does make it Bozo wants to take it away and give it to people who don't want to work. Communism, or if you prefer the white washed word, socialism.
A guy on CBS News just now had to throw in a little tidbit...that Joe owes $1200 in back taxes. What the devil does that have to do with anything?
I loved Obama’s response to McCain that only ‘BIG BUSINESSES” would have to provide health insurance. I guess we have to take it on faith that Obama can tell the difference between a big business and a small business. If they define Big Business as being over 500K you will find a lot of companies closing their doors as soon as they hit the 500K a year margin or risk having to pay tens of thousands in health insurance premiums they can’t afford. Talk about discouraging productivity.
RE: “SPREAD THE WEALTH” should be a bumper sticker”
****
I was thinking I’d like a tee shirt and/or sticker that says: “Spread Your OWN Wealth, Zero!”
Two things:
(A)Just another way for the liberal Obamanots in the media to attack the guy. They sure are quick to find every possible fault with some random guy who asks Obama a question but they can't/won't find anything about the relationship between Obama and Bill Ayers, or about the other terrorists, leftists and America haters that Obama pals around with.
(B)If Joe is like many hard working Americans he has trouble paying all the taxes he is burdened with now. He'll be sunk by what Obama and his crew want to do. Joe is rightly afraid that Obama's goal is to have 49% of the country working to support the other 51% - who will then forever vote for Democrats to keep the cash coming from the rest of us who actually earn money. That's what "spread the wealth" really means.
Is that sort of thing public info?!!!! This from the very same MSM that has a problem with wiretapping terrorists!
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