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JJ Ramberg

JJ Ramberg is the anchor of “Your Business,” MSNBC’s weekly show on small business. In addition to her extensive television reporting experience, Ramberg has a background as an entrepreneur and co-founded GoodSearch.com. She has an MBA from Stanford Business School.



Some businesses changing for Obama

Posted: Tuesday, November 18, 2008 1:56 PM by Eve Tahmincioglu
Filed Under: , ,

Before the election, a small business owner named Paul sent me an e-mail. He said he planned to immediately fire one of his two employees if Barack Obama won because he feared tax increases.

"Guess which one it might be?" he asked. "The one with the Obama bumper sticker and who voted for the tax increases, or the one who voted for no tax increase?"

His answer:

"Plain and simple – I will keep the one who wants my small business to be successful and not the one who's looking for a free ride on the Obama unemployed express," he wrote.

The way Paul saw it, Obama would usher in tax increases for business owners like him.

I've emailed Paul a few times since Obama was elected to find out if he plans to follow through on his promise, but I haven't heard back yet.

So I figured I'd put out a call to small business owners who bring in over $250,000 -- the figure Obama gave as the tax-no-tax threshold -- to find out if they had any plans to change business in any way once he takes office.

Here's a sampling of what I got:

One thing I plan on doing is deferring some business expenses until 2009 so that I can reduce my income tax liability under an Obama administration. That is, I'll show more profit this year, and show less profit next year.

--Scott Tucker, Tucker Marketing Systems, Inc.
 
As a small business owner of a successful ecommerce company that has been in business for 12 years, I do have concerns with the potential policies of Barack Obama towards small businesses. Specifically, I'm concerned with capital gains rates going up.

Capital gains rates are up to 15%. Accordingly, if Obama strongly suggests raising that rate to 20% or 25% that would create a strong financial incentive for small business owners who have been working hard to build up their businesses for many years to cash-out. Businesses will be immediately be worth less if capital gains taxes go up, as the future owners will have a smaller percentage of income to take home at the end of the year. In sum, the plans are to keep my company's books in order and update my company's business valuation using current national data regarding transactions in my industry, as well as closely watch interest rates, tax rates, discussions regarding capital gains rates, and explore all unsolicited interest from serious prospective buyers.

--Oren Milgram, StudentMarket.com Inc.

I'm not worried about higher taxes. If I make a lot of money, it probably means I can afford to pay higher taxes for the benefit of those who need the help!

I am actually pretty positive about the future of the economy, and just hired a full-time Creative Director to develop several new products I've had in mind, and reintroduce our best-selling game, Loaded Questions (over one million sold), in a new packaging
 
--Eric Poses, All Things Equal Inc.

Yes, we anticipate higher taxes. We've considered the facts and deliberately do not plan to change a darn thing as it relates to our business operations.

It's like if there were a $10 tax on Olympic Gold Medals. What are you going to do, deliberately aim for Silver to avoid the tax?  

The way I see it, a tax on applies when you've successfully made a profit. We plan to be as financially successful as possible, tax or no tax.

--Victor Cheng, Bookmercial

Regarding taxes -- we are always on guard about shouldering a higher percentage of the tax burden. Who isn't? But when the economy turns around and we are continuing to grow our business, it will be a privilege to pay our share of taxes towards the betterment of America.

--Mitch Frankenberg, The Paw House Inns and Resorts
 


How about you? Do you have any plans to change your business?

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Comments

What exactly is the hand-outs and free rides that President-elect Obama is giving out.  People just throw around terms like socialism when they have no idea what that means, and they don't even bother to educate themselves about Obama's tax plan.  And if you tell someone you fired them for how they voted you can still be sued for wrongful termination by that person.  And any small business that makes $250K in NET PROFITS should be able to hire a good accountant for some tax planning advice.

rms, Washington DC (Sent Wednesday, November 19, 2008 11:36 PM)

Who knows what the magic income number will be. 250k?--200k? None of that has been set has it? That is still to be seen. I don't think you should be penalized (taxed) more for making sacrafices and advancing yourself.
Government is big business. What happens when revenue is down for every other business. You find ways to do things better and more efficient. We The People have got to quit enabeling them. Now we just voted a man in office that looked you in the eye and told you that he was going to raise your taxes. I own a small business and already pay in the 30% tax bracket. Isn't a third of what I make enough already? And I already have an accountant and I also get a second opinion when it come to the money that I HAVE EARNED!! before I send it in. I have some advice for the auto industry too. Quit paying 73 dollars an hour to your employees. Unions got them more when the times were good. Cut the pay and bail yourself out.

Scott Russellville, Ar (Sent Wednesday, November 19, 2008 11:43 PM)

Paul reminds me a lot of "small business owners" who are nothing more than a three-man shop that barely clears enough to pay the bills - and never in a million years will he make $250,000.  He should call his friend "Joe the Plumber" to see up a new Chamber of Commerce.  

Jeffrey Compton, Forest Hills, NY (Sent Wednesday, November 19, 2008 11:45 PM)

Well smart business tells me, pull all your money out and take the capital gains hit this year. Then just loan the money back to the company.

Joshua Drake, White Salmon Washington (Sent Thursday, November 20, 2008 12:18 AM)

I'm not going to pretend to know anything about business taxes, however, more and more companies are leaving the USA. They found it cheaper to operate in another country. I'm an employee and would rather pay a little extra of my personal income to keep US businesses in the US. However, I do resent Unions and extravagant CFOs. For those companies that move out of the country, I don't even want to buy their products. Why would I. I deem them as being traitors. Unless I can see their bottom line #'s out of the country, and what's being put toward USA, I don't want their stuff.

Tina Syler (Sent Thursday, November 20, 2008 12:43 AM)

You don't have to be a CPA's, economists, financial advisors, we just need to have common sense, all these financial situation of our country is going through it is because of the mismanagment of our present government(specially this invasions to other countries called wars)and each of us living la vida loca, our elected president Mr. Obama has the best intentions to start getting this country back on track, but also at the same time we need to take steps ourselves to solve our problems, we need to learn to hold the bull by the horns. We need to adjust everything to the circumstances and be positive, stop using the plastic and live according to our means, what we are going tru right now is has to be lesson for all of us specially for our kids to teach them to live accordingly, saving for the hard times.President elect Obama has won this election because he united people and he has great plans for our country. Why you people still don't say anything to George Bush after 8 long years of bad goverment he is the one that has put this country were we are right now. Let's our elect president do his job,let's do ours. Stop the whinning!!!!

pilar romero, encinitas, ca (Sent Thursday, November 20, 2008 12:47 AM)

I find it entertaining to hear the Hannity/Limbaugh talking point parroted over and over again.  I'd be suprised if Limbaugh with his $400 million even understand the meaning of what most small business go through.  I've listened to Obama's proposals and I don't recall many welfare checks being promised to those "good for nothing" slackers.  I do remember clearly though McCain promising to write a $5000 tax credit back to everyone for healthcare.  That sounded a lot more like welfare, but you wouldn't hear the right wing nut cases dare admit that.

TB, Parker, Co (Sent Thursday, November 20, 2008 12:59 AM)

The only thing I have to ask all of the business owners writing here, is your business better off today? We had somebody in office that didn't beleive in helping any small business. Tell me how much better will your company be if the economy stay the way it is today and nobody can afford your product or service? Will that make more sense to you?

It's okay to bail out wall street, but if you help the person making 40k to 50k a year, it's welfare. If your the government wants to help those people stay in their home, that they are willing to pay the mortgage on, that's welfare. Obama wants to help improve the life of somebody making 100k so he can send his child to college, that's welfare. I could go on and on. The selfishness is amazing to me.

This holiday season promises to be one of the worst for a lot of people. What good is your service or product if nobody can afford it?  

Classee55, Jacksonville, NC (Sent Thursday, November 20, 2008 1:19 AM)

I agree that Paul the small business owner should fire the Obama supporter, not because of his political views, but for the fact that this employee would likely expect the "perks" that a liberal administration brings - e.g., mandated sick leave, vacation leave, family leave, universal health insurance, worker training, etc.  In an ideal world where nothing costs money, that would be great.  But the bottom line is that most small businesses cannot afford such benefits for their employees.  They are just trying to hustle to survive in this increasingly dire economy.  Obama wants to "spread the wealth" by increasing employee benefits at employers' cost, whether through taxes or direct mandates.  So what does the small business do?  It hires less people or no people at all.  The employer mandates are already starting - Maryland state democrats are proposing a two percent payroll tax on all employers in the state to fund universal health care for uninsured people in the state.  That is a lot of money, and is sure to cost more than a few jobs.  

Fingal, Rockville, MD (Sent Thursday, November 20, 2008 1:20 AM)

To Max - tell your friend he sucks at running his business, if he's making over $250,000/yr. in profits (not income) and will be unable to keep his doors open if a slight tax increase comes his way.

People crack me up how uneducated they are on economics. Bush tricked everyone into thinking the economy would get better by reducing taxes (mostly on the rich) and tricked the "average joe" by sending them a check. Truth is, you can't get something for nothing...if you have multiple jobs and start spending more of your paycheck but start slashing sources of income what do you think will happen? You'll end up with a huge personal economic crisis.

SolidComprehension (Sent Thursday, November 20, 2008 1:36 AM)

I like paul-I think I will do the same to take out my fustration if obama turns liberal

ted (Sent Thursday, November 20, 2008 2:10 AM)

I am taking a wait and see attitude. Presidents do not make policy. They can influence and sign it, but it is not the president alone who writes the final policy to be enacted. I do know one thing , however, and this may be a reason why you havnt heard back from the business owner who said he will fire the person who voted for Obama; If in fact he uses that as the reason for the termination, he will be setting himself up for a lawsuit that may very well bankrupt his business anyway.

D.C.S. (Sent Thursday, November 20, 2008 3:06 AM)

Its obvious that many small business owners have no idea what they are doing in the first place. Any increase in business cost is always passed on to its consumers base. if your capial gain or taxes rise 15% so does your product or service cost plus or minus 10%.

A.T. Indy,In (Sent Thursday, November 20, 2008 3:43 AM)

Not once have I heard the real issue here. The problem is not those companies who make just around $250,000 and employ a few people. But rather it's those small companies making considerably more who employ several dozen people. This is the job creating backbone of our economy. If, in the current economy,  this employment machine is choked with higher taxes there will be no new jobs to offer new workers just joining the workforce. (No problem for them I guess since they can go to a college with an overpaid professor and staff with a subsidy from the taxpayers.)not to mention current workers who will loose their jobs. The profits kept by the employer/owner is no ones concern. Under our Constitution no man is beholden to any other unless he takes on the burden voluntarily. How do you know what use the owner will put the money towards. perhaps he has plans to expand or alimony, or he lost a court case or who knows what. If he is refused the right to pay those obligations he would have no choice but to cut back on payroll and expenses. A sure fire disaster recipe. ( Tastes terrible )    

Mark, Los Gatos,CA (Sent Thursday, November 20, 2008 4:16 AM)

You Obama followers, all I can say to you is when the time comes and it will definitely come: Don't blame me, I didn't vote vote for Obama!

dotty beagle, fairview, tn (Sent Thursday, November 20, 2008 4:42 AM)

Wow,reading all these comments has opened my eyes to just how far this country has fallen. The last 8 years have been hell for alot of people. Some of you have complained about Obama. If the other candidate won the complaints would be similar, but for different reasons. The Bush bastards have raped and pillaged this country for 8 years while slipping a little cash to make it alright. Now we have a guy who from what little detail you get from the media will give a whatever is left. We had a couple candidates who might actually have made a difference if elected, but they were thrown by the wayside (I don't mean billery). The past few election have been a farce actually they may as well been call erections since all the American people got was the big stiffy.

R (Sent Thursday, November 20, 2008 6:09 AM)

If Paul fires his employee, he could be sued for violation of title VII. It is illegal to discriminate against someone because of their perceived association with a group.

Preston, Lexington (Sent Thursday, November 20, 2008 6:46 AM)

I hope Paul, the small business owner gets sued by the employee he pkans to fire simply because he or she supported Obama. Gee Paul, I wonder why you didn't have your whole name and business signed to your ignorant comment?
I am a small business owner and if I turned a yearly profit of $250,000 or more after all expenses, I would be much more inclined to hire an extra employee and or give my current employees a raise. I would rather help someone out than fire them in order to save a few bucks.

Marcia Harrington , Manchester N.H. (Sent Thursday, November 20, 2008 6:47 AM)

I guess it's easy to be a jerk - no change in revenue, no change in his taxes currently, but he is going to fire someone for his political beliefs. This is not America at it's best. Republicans keep doing their best to recreate the USSR.

Bob Bogosian, New York, NY (Sent Thursday, November 20, 2008 6:49 AM)

It's only fair that you give us the name of his business so that we, the Obama supporters, can choose to take business elsewhere.

Francois, Cleveland, Ohio (Sent Thursday, November 20, 2008 7:25 AM)

As you read these messages it is clear that most respondents do not own a business. When a business owner makes over $250K, in most cases he does not take that home. Let's say he takes half. The remaining $125K has to stay in the business to fund his receivables and operations, yet taxes are still paid on it. You cannot leave the bank account at zero and run a business. While a business owner on paper may show this profit, he is not taking the cash, but still paying the tax.

With Obama's election our decison has been made. Five employees out of 60 will be let go by the end of the year, not because of the tax impact, but because of the negative cash flow impact due to paying out these higher taxes.

Rusty, Stratford CT (Sent Thursday, November 20, 2008 8:26 AM)

U.S. jobless claims jump to 16-year high ... What do you think will happen if (WHEN) Taxama (Obama) raises taxes on small, medium,or any business?!!!

Tom D. (Sent Thursday, November 20, 2008 9:17 AM)

Since non-business owners on this thread would be honored to work harder for the same amount of money, let's increase taxes on this group to 45%. After all, they don't create jobs or contribute to the GDP or pay a myriad of taxes at various government levels.

The prevalent logic on this thread is "Don't worry about earning $250k if you don't have customers". So don't worry about paying 45% if you don't have a job.

We're all in this together. Unless we migrate to Mexico.

Ed Snopse (Sent Thursday, November 20, 2008 9:25 AM)

Lets cut the crap! the econ is the way it is because of gas prices! Plain and simple! Higher taxes that cause a business to lay of workers or close will not help the econ it will raise the unemployement rate to new highs. If more people are unemployed then they wont be buying junk from big business that are supposed to make it through all of this so therefore they will have to lay off workers or shut doors hense completing the circle of a crappy econ and unemployement. Not to mention if the joker puts on gun bans that will make thousands of people in the gun industry lose their job. WAKE UP AMERICA!

Eric, Versailles, Mo (Sent Thursday, November 20, 2008 9:31 AM)

I actually worked in a company that had an owner named Paul who fancied himself as becoming a Republican politician and was actually donating money to the GOP while his business was failing.

It was clear that Obama was going to win the presidency months ago and that the GOP was going to take a drubbing. Yet he persisted in supporting the GOP and even tried to proselytize associates with the Republican conservative message during sales meetings.

If he ever runs for office, I will help his opponent. I liked Paul, but he ran a awful business with marginal benefits and three holidays a year. He fired 1 to 2 people every week. He also lacked college.

To many failed businessmen like Paul end up with political appointments in the GOP. In his case he will have to wait at least four years to get one of those jobs.

After I was laid off and got unemployment, I went to work for the Obama campaign as a volunteer and helped him win in the Florida I4 corridor. There were other volunteers that were fed up with the GOP that were supporting Obama. Many had been laid off.

So thank you, Paul. You helped me get directly involved in politics for the first time in my life and be a part of an effort that resulted in a huge Democratic victory.  



E. Elder (Sent Thursday, November 20, 2008 9:41 AM)

Bringing in $250k per year in sales is not the same as making $250k in income.  A company would have to do near $1,000,000 in sales to hit the $250k income level if not higher.  Then, the increase would be incremental.  Paul is probably as ignorant as Joe the plumber (not really a plumber, not even able to buy a business, the business doesn't even GROSS $100k).  There is not one business owner that is going to get rid of an employee because of higher taxes.  Employees are hired to create revenue for a company.  They are not there just because business owners like to spend money.  If sales fall, employees may get hours cut.  Simple as that.  Cripes, why even put this Paul moron in the media.  He is just spouting BS.  The ignorance of a huge percentage of people in this country is amazing.  The media doesn't help by stoking the fire of propoganda.  Set the fact straight for once.

Bob, Madison WI (Sent Thursday, November 20, 2008 10:14 AM)

There once was a man who said, "The hardest thing in the world to understand is the income tax."  The man who spoke those words was Albert Einstein.  He also said, [on filing for tax returns] "This is too difficult for a mathematician. It takes a philosopher."  I thought these would be appropriate quotes for this thread.  I see we have alot of philosophers here!

Scott, Michigan (Sent Thursday, November 20, 2008 10:16 AM)

The real fear in small businesses is that the economy sucks right now, and everyone is scrambling to keep making that profit?!!! They are putting off bills and running up debt to make that number to which they have been living on for years. The real trouble in the proposed changes is the Medical requirement. Our company would shut down immediately if we were required to provide insurance for all of our employees. At an average of $800+(cheapest in my state) per family, now multiply that by 30 employees~$288,000 per year. NOW you are out of business, because you cannot pay for thier insurance~so you reduce your employees to compensate. Is everyone listening~DO YOU GET THAT THIS WILL HURT OUR NATION, NOT HELP! People will still get sick and die, they will just do it with insurance, that is until they lose thier job because the small business that they worked for shut down.

J Davis Tyler Texas (Sent Thursday, November 20, 2008 10:27 AM)

If you don't own a small business or never have owned one, then you will never understand.

MAX (Sent Thursday, November 20, 2008 10:28 AM)

I own and run a small giftware business and while the media may be talking about the bad economy now, my industry has been hurting for at least 5 years. I had to lay off 15 employees in 2003 when the economy started to tank because of Bush's war in Iraq. We have been struggling ever since and I am pouring more and more money into my business, just trying to stay afloat. This holiday season looks to be the worst in 40 years and many of the retailers we sell to and most of my fellow craftspeople are afraid this is going to be the end of us. We have been holding on and cutting back and finally may not be able to stay in business any longer.

BECAUSE the middle class has been shrinking under George Bush and as the middle class suffers, so does everyone who services them. Bush redistributed the wealth by giving tax cuts to the rich and they called it a "stimulus package". The rich got richer and the rest got poorer. People make cutbacks and our industry was one of the first to feel the pinch. Obama understands that the middle class is the heart of this country and the backbone of the economy. He is going to give tax cuts to the middle class and to small business and that will help stimulate the economy. And I'm sorry, but if you Net over $250,000. you aren't middle class and you aren't a small business.

I would be very happy to pay the taxes on all of the money my business DIDN'T MAKE under George W. Bush. Even at the height of our business, when I had 25 employees, I never netted anything close to $250,000. But if I did, what is a 3% increase?

If "Paul" only has 2 employees then I don't understand how he could possibly Net more than $250,000. in profit. And who is going to do the extra work of the fired employee? Paul? Then guess what. His expenses will go down and his profit will go up and he will pay more in taxes. So he is making his supposed tax problem worse because he isn't thinking things out and waiting to see what happens. If things continue as they are in Bush's Depression, Paul's business is more likely to suffer and paying taxes won't be a problem. Staying is business will.

Clearly, "Paul" is a short-sighted, spiteful, fearful idiot. It sounds more like Paul is just looking for an excuse to vent his frustration on someone and the Obama supporting employee is handy.

Diane M Los Angeles, CA (Sent Thursday, November 20, 2008 10:35 AM)

I read with interest the comments about all I get free from the government.  Let's see if I can put that in perspective.
I work two jobs.  One for a large company, the other is my own  retail company.  I work the first so I can support the second.  We have yet to make 250,000 in gross profit and this ecomony isn't helping, but we have a plan and are actually making it work. Even so, without careful budgeting for what we can afford,   I can barely afford to keep everyone employed.  So if I am going to incur more expenses with some of the proposals to provide  more insurance benefits, I will have to let someone go, and I cannot survive with less people.  If I get just one more cost piled on, I too will close.  my accountant and I are going to review the profit ratio to the input at year's end.   I employ 8, so they will be added to the unemployment line.  Currently all have  supplemental insurance from another source.  I will no longer buy from my suppliers, pay rent to my landlord, pay utilites, phone bills, advertising, freight, computer access fees, janitorial supplies.  I am not a huge company but I spend about 300,000 yearly in my community.  That will be gone.  So that leaves my other job.  I will then not be investing the amount I make there into this company which leave me free to pay more taxes to help those who need it-- btu what about my employees? Do you see where I am going?  My employees needed it, the community needed it.  Now it is diluted in a huge pot, so that it is spread how?  I  currently pay property tax, school tax,community college tax, ad valorem tax, utilty use tax, employment tax, social security tax,  sales tax, street and wheel tax,  toll tax, city tax, garbage collection tax, fuel taxes, tax on freight in and out, commercial utility rates to subsidize residential rates, commercial phone rates to subsidize residential rates.  So I quit paying into those for??  what was thereason??  Making it harder on the small business owner does not fix anything.  However, it will give me time back -- no second job for me! But the trickle down is painful.

tko (Sent Thursday, November 20, 2008 10:37 AM)

Uh, people.  Has anyone seen the Dow today?  I guarantee that if this country goes into depression, which seems to be the ongoing trend, your Obama tax increase won't matter, because nobody will be working to buy your products and you will still go out of business.  Stop complaining, Republicans, and take one on the chin for America. You are supposed to be the more patriotic ones, right?

HD, Wash. DC (Sent Thursday, November 20, 2008 10:41 AM)

Its not that small business who make over 250,000 cannot afford to pay the extra tax under OBAMA it is that THEY ARE UNWILLING to support the tax! I agree with all the others our government makes it to easy to live for free and not do anything and get everything. Illegals are taking our jobs because americans have outright said that a janitor needs to make $15 a hour. Illegals taking our job this is our own fault for thinking our work is worth more than it really is.

MS, Houston TX (Sent Thursday, November 20, 2008 10:48 AM)

I' have got a better idea. Instead of everyone blogging on this website why dont we write to our congressman to complain.

M (Sent Thursday, November 20, 2008 10:52 AM)

This is pure discrimination firing an employee because he exercised his rights. First of all the President Elect is not taking the office before inauguration and you have not even given him a chance to do what he promised to the middle class or small business owners. You fear because he is going to do the right thing and eventually bring the economy turn around....

Yalem, New York (Sent Thursday, November 20, 2008 10:58 AM)

I have a transportation company which brings in over 250k in income but it hasn't made money since we opened five years ago.  My wife and I both work day jobs to pay our personal bills and we put about 40k a hear into the business in hopes that we will one day get beyond the equipment loans and show a profit by 2010.  We are part of a small group of Americans who are trying to break the sound barrier of prosperity.  I hope that someday my decendents will not pass on debt to thier children.  That's the secret that rich people don't want the average American working to learn and understand.  The Democratic way fosters a behavior in Americans to rely on the Government to help them and create laws and processes to make their lives better.  That is how they get people to vote Democratic.  I'm afraid the shift to that way of thinking is inevitable.  This is not about taxes, it's about the end of prosperity as we know it.  Americans need to wake up and take control of their lives and the Government who feeds off their ignorance.  If we do nothing then one day our childrens children will think it's ok to produce papers to travle from one state to another.  They will think it's ok to blame everyone put themselves for there misfortune, and most of all, it's ok for the Government to tell them what to do because we Americans let it happen.

Croom

Lionel Croom, St. Louis, MO (Sent Thursday, November 20, 2008 11:00 AM)

First : Obama didn't start this mess.  
Second: It's a world mess, yes do to the U.S., but it is a WORLD MESS.
Third : If I made 250,000. and the gov't asked me to give a little more. I would.  We were all giving that before the Bush tax cuts and I didn't starve to death. But, most importantly in this crisis if you have no income or not enough income how do you pay your bills ?  Should your bills become bigger because of a health issue,or legal issue ( MEDICADE/MEDICARE/SOCIAL SECURITY and THE COST OF WARS) how do you pay for it ?  This is what we face now.  Not enough money coming in for what the U.S. needs to pay out to 'FIX' things ( or try to).
Mr. O is not a communist he is just trying to get some hold on this thing....
Lastly Economics is like a fortune teller looking into a chrystal ball.  Someone see's a cloud and says it's a good thing, someone else see's a cloud and says it's a bad thing.  In short NO ONE ON EITHER SIDE REALLY KNOWS THE CORRECT ANSWER TO THIS MESS, WE ARE ALL JUST TRYING, trying this and trying that in hopes that it will get things moving again.
GIVE US A BREAK HERE AND WORK WITH IT....

1534478 (Sent Thursday, November 20, 2008 11:03 AM)

This is the case in point, everyone tried to tell those starry-eyed Obama supporters. All those promises of change and a big fat new refund check comes with a price tag. Barack Obama repeatedly stated throughout his campaign that he was raising business taxes,payroll tax, plus, cutting 15 million from seniors medicare to pay for these refund checks.

Hello, what part of that didn't you understand? Of course 95% of Americans will be effected. Either we will pay higher costs for products from companies trying to cover the income tax increase; or, we will lose our company benefits or jobs to cover the payroll tax increase. This is the "Change to believe in" that your livelihood will have to face. Everyone was warned that Obama was the most left winged Democrat in the Congress and his anticipated Trillion Dollar Debt and increased government control will make the Bush Administration look like a walk in the park. I hope you Obama fools are happy.Unfortunately, you idiots had to drag the rest of America down with you. You ain't seen nothing yet, wait until all his policies are in place, it is just starting.

Therese in NV (Sent Thursday, November 20, 2008 11:03 AM)

What is the matter with you people. Obama repeatedly stated throughout his campaign, he was cutting seniors Medicare by 15 Million, increasing business income taxes and payroll taxes to cover those big fat refund checks you all want. Did you really think free money doesn't have a price?
Everyone warned those starry-eyed Obama supporters, to really look at the policies and increased government control that would be implemented. Even fellow Democratic Politicians warned that Obama was the most Left-Winged of the Democrats. Hello! Anyone awake out there?
Now your worried about losing your jobs. Well, you haven't seen anything yet. Of course, 95% of Americans will be effected; how could they not be? Businesses will be raising the prices of products from Milk to gasoline to cover the business income tax increase. Our economy is struggling and now businesses will have to pay more payroll taxes. Of course what little benefits you have and even your job will go out the window. What did you expect?

You can't blame this on Republicans, the Democrats have controlled Congress and ignored lending institution reform bills since 2005. You wanted Obama, well now you've got him; Did you really have to drag the rest of America down into your stupidity?

Therese in NV (Sent Thursday, November 20, 2008 11:15 AM)

If Paul fires one employee, the immediate effect would be that his PROFIT would actually go up , for the same revenue he brings and he would need to pay more tax even under the current rates.

People really do not seem to understand what gets taxed - it's the PROFIT, stupid.
I refuse to believe  many of these people make the MILLIONS in sales/revenue that would work out to 250 k in profit.
And I refuse to believe they would have to have to close down because they would have to pay just $3 more for than they would have to now, for every $100 profit, which probably means about $2000 additional revenue, ABOVE the 250k profit limit.
It is more likely they small businesses would close down if their lower-middle class customers do not get adequate tax relief that would encourage them to buy their goods/services.

RK,Philadelphia,PA (Sent Thursday, November 20, 2008 11:15 AM)

For those who really believe that a business that earns less than 250k will not have their taxes raised are in need of a brain transplant.  Run the numbers, Obama cannot afford his plan.  What to do then? Well, just like every other politician, print more money, which makes every dollar you have (yes, including you under 250k) worth less.  There's your tax increase.  As for Paul firing an Obama supporter, well, if all of his employees are working equally, then sure, fire the idiot that helped bring this future calamity upon us.

Jeff, Utica NY (Sent Thursday, November 20, 2008 11:26 AM)

"Well smart business tells me, pull all your money out and take the capital gains hit this year. Then just loan the money back to the company." Joshua Drake, White Salmon Washington

…………………………………………………………………………
This is the kind of stuff that cracks me up. People need to read the tax plans that were proposed by the President-Elect. They are still available at barackobama.com.

Jushua doesn't realize that Obama has proposed eliminating ALL capital gains taxes for small businesses for the next several years if that money is invested in small businesses. This has been proposed to encourage small business growth! If he takes that money out now, he will actually pay MORE taxes than he would if he waited until the new tax laws are adopted.

pamela, mckinney texas (Sent Thursday, November 20, 2008 11:27 AM)

Sam in Arizona,

Maybe I'm a financial advisor who has an intricate knowledge of our (read this) MARGINAL tax brackets.

If you don't have a dictionary, read this article to help you out.  http://www.businesspundit.com/small-business-and-marginal-tax-rates/

Chris Kurtis Indiana (Sent Thursday, November 20, 2008 11:27 AM)

Those business owners who are complaining about the non-existent tax increases under Obama are just making things up.  These people just don't like democrats.  What should we do?  Continue the bush/GOP policies that caused the economic meltdown?  There is no where else in the world where you would enjoy the success that you do:  You owe a debt to your country for that.  So, quit complaining and pay your taxes like everyone else.

Tom Ulcak (Sent Thursday, November 20, 2008 11:28 AM)

To Sam from Arizona,

Regarding your statement, "If you make over $250k per year vs. $249,999 per year you're in an entirely different bracket and pay more on the ENTIRE amount."   You are incorrect.  You may wish to read up on the concept of "marginal tax rate" or ask a tax professional to explain it to you.

James Toney (Sent Thursday, November 20, 2008 11:38 AM)

I like the comment about the restraunt owner who will shut down if taxes go up. I have to wonder if that was a story made for a comments section. The person who posted it obviously knows little about small business.

I looked at an example of someone who was netting 200,000 vs someone who is netting 250,000 post proposed increase. The person making 250 will still keep $37,000 more than the person making $200,000. So we are now to believe that people will deliberately go out of business or won't be incentivized to earn more and would prefer to keep $37,000 less in order to avoid any additional taxes.

I've been a small businessman since 1982. I have been through numerous booms and busts. Ask any small business person their preference ; enough profits that you can enter the top 10% of income earners or work 100 hours a week and lose everything because of 8 year of economic policy that has ended up causing a record amount of small business bankruptcies.

America is a County that has always rewarded it's entrepreneurs. It's also a country where failure is an option and one can try over again. The entry barriers for small businesspeople elsewhere are significantly higher.

If we are making good profits then we should be happy to pay the taxes to keep our country afloat. If the country doesn't make it, neither does the small business. Talk to some businesspeople that have filed for bankruptcy this year. Ask them their preference on taxes.

Indianapolis, IN (Sent Thursday, November 20, 2008 11:39 AM)

Please review the 1907 Panic where greedy wealthy americans caused a collapse of the Stock Market, brought about inflation, prices soared, wages decreased, unemployment rose and many businesses including banks failed.  The economy was "bailed out" by other wealthy americans (J.P. Morgan, J. Rockefeller), not tax payers, who used their personal wealth to keep banks open and give depositors their money.  Paul, you should look up to those individuals who helped their contry in need!!  Keep your people employed and strive harder to make more money and help america stay strong.   It worked in 1907, it can work today.

O. Priotti (Sent Thursday, November 20, 2008 12:11 PM)

With the wonderful economy established by George Bush, will there be any small business owners making over $250,000 a year? I wonder if there will be many small business owners left at all!

Ali in Virginia (Sent Thursday, November 20, 2008 12:13 PM)

Fist off I would just like to agree with everyone about the looming taxes, it will be a devastating blow to small business owners everywhere.  Small businesses really are the heart of America and are key to its success.  I would just like to leave you with a little quote;

"How can we keep a cow alive that everyone is constantly milking but no one will ever feed?"

Dan Vincelett, San Diego (Sent Thursday, November 20, 2008 12:14 PM)

TW,Tucson,I hope all of your American customers  read this now that you have moved your jobs to Mexico, I hope that we can make sure that all of your customers also live in Mexico,what about it Americans,lets buy from the US companys that keep the jobs here in the USA and that hire US citizens.

John Nettles (Sent Thursday, November 20, 2008 12:45 PM)



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