Tax cuts only for the wealthy! Screw the middle class! Vote Republican!

I recently had the opportunity to Melody Barnes, one of Obama’s chief domestic policy experts, about how his tax plan would affect my business which is a sub chapter S, specifically, if we grew to where we would like to be our taxes would be raised umcomfortably (still a small family owned business). Her answer was basically that she was not familiar with sub chapter s but that she was interested in learning about it. (note: There are more than three million Subchapter S corporations in the United States with nearly six million shareholders.)

I’m still undecided but her response was worrisome, to say the least. That tax hike would definately take some incentive out of our desire to grow and succeed.

10 guys go to a bar every Friday night, they decide to share the tab, and because they have a very different range of incomes, they decide to do the tab like the tax system in this country.

The 4 lowest paid guys pay nothing and drink for free; the 5th lowest pays a dollar, the next two guys pay 2 dollars, the next pay 5 dollars, the next 10 and the richest pays the rest of the tab.

After a couple of months, the owner comes to them and says he wants to give them a break on the price … he is giveing them a $20 discount. The group decides to split the savings, but there is at least a little discussion … if they do it by giving two dollars to each, the lowest paid will be getting paid $2 to drink each week. The fifth will drink and be paid a dollar and that just doesn’t seem right, so they do it like the taxes again. The lowest 4 still drink free, the 5th one joins them in drinking free, the next two only pay a dollar, the next pays 4 dollars and the next pays 7 and the rest of the savings goes to the one paying the most.

They all pay that night and when they get out of the bar, a discussion starts with the guy that was 5th, he states that he only got a dollar benefit from the $20 savings, the lowest 4 claim they were shorted even more, as they got nothing, the sixth and seventh say they only got a dollar of the savings as well, the eighth and ninth, “hey, we didn’t get that much, the rich guy got $13 dollars!” at which point they all turn on him and beat him up.

The next week, the rich guy stays home, and the 9 others meet at the bar as usual, but when the tab comes in, they don’t have the money to pay it.

I really fear card check more then I worry about taxes. Taxes will slow the economy and could force us into a very deep recession, but a gov supported Union push will move a lot of jobs out of the county (pronto) and configure the work force in a way that we’ll be struggling to overcome for decades.

esp if Gov tries to get involved with setting contract terms. I have to admit I never thought it would unfold like this – wow I’m stunned

Brian,
I sent that economics example to Jack 4 days ago. It is a great example (and easy to understand). Glad someone posted it.