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Tax cuts and uncertainty

Hello:

Republicans want the tax cuts for the richest Americans to continue... They SAY that those people will create jobs... But, I don't know... I think MOST of those people are like John Kerry. He'll get a HUGE tax break, but I don't think he'll be creating many jobs. You know, buying yachts and stuff... Do YOU want to see him get richer?? Do YOU think he'll create jobs? I don't think you do..

Which brings me to the "uncertainty" the Republicans talk about. They SAY that small business is sitting on a PILE of cash, but isn't spending it on new jobs because they're "uncertain" about the future... I don't know know about that.

AS a small businessman myself, I don't have the luxury of sitting on the sidelines. If there's an opportunity to GROW my business, I'm going to GROW my business. I'm NOT going to sit around and wait for the government... If I NEED new employees to GROW my business, I'm going to HIRE new employees... I'm NOT going to sit on the sidelines... If I SEE a new product or service that I can capitalize on, I'm going to TAKE that opportunity. Because, if I don't, my competitors will. I cannot AFFORD to sit on the sidelines.

That's the REALITY of business. Those decisions above are NOT choices. If I sit still, I go backwards. I don't have the luxury of ignoring business opportunities. Besides, IF taxes go up, does that mean I'm NOT going to try GROW my business anymore?? Of course not. I'm going to try to GROW my business no matter WHAT the tax rate is. I may not LIKE it, but I'm NOT going to FOLD my business because of it. Would the prospect of MORE regulation cause me to sit on the sidelines?? No, of course not. That's like saying you shouldn't get married because it might not work... That's not how businessmen think. We DON'T hold back. We are NOT timid. The timid get eaten.

I think other businessmen are like me, instead of how Republicans say we are, don't you? They like to make up stuff...

excon

Quote:

If I NEED new employees to GROW my business, I'm going to HIRE new employees.

I know of many employers who are not hiring exactly because of regime uncertainty . They don't know what their taxes will be .They don't know what they will be mandated to contribute to things like employee health care... or the possibility that they lay off the employee and have to pay into that person's extended unemployment benefits.
I know many employers who's businesses could probably use an employee or two who have instead asked their current employees to take on the load with greater amts. Of overtime .

Regime uncertainty is a proven fact. It is what extended the Great Depression longer than it should've lasted. The big cause of the extended depression then was that there was no confidence in the private sector that there would be a decent return on their investment... especially long term and capital .
The truth is today; businesses must take into calculations issues like the effects of not knowing what next years taxes will be ;Obamacare ,Fin-reg.and cap and tax proposals and other dopey ideas like this move towards a VAT .

Don't believe me ? Well this is what small business owners are actually saying (page 6 of this survey from the National Federation of Independent Business )
http://www.nfib.com/Portals/0/PDF/sbet/sbet201006.pdf

Quote:

A huge help in moving toward a stronger economy for small business owners would be to “do no harm”. But Congress continues to pass and propose legislation that increases the cost of running a business and create huge uncertainty about future costs.

When asked what their single most important problem was, 35 percent of small business owners cited “taxes” or “government regulations and red tape.” “Poor sales” was second at 30 percent.

This is what small business owners are saying... not Republicans making stuff up

As the owner of a one man shop that could maybe afford an employee if the situation were stable I'm back to sixteen hour days. My partner and I just split the business to avoid a 300% workman's comp. premium increase. Providing health insurance would kill both of us.

That's not made up.

Quote:

Originally Posted by Catsmine

That's not made up.

Hello again, Cats:

I know it's not made up. You just run your business differently than I do.

If I was a one man shop, and could afford to hire an employee, freeing myself up so that I could GROW my business even more, I would.

What is going on in Washington, or for that matter what's going on in my own city, and the "uncertainty" of where any of it leads, would have NOTHING to do with my decision - absolutely nothing. Besides, I HATE grunt work

excon

Me ,I'm different . I don't hire before business (sales ) justifies the expansion. If I had a restaurant ;I would not expand ,put in more tables and chairs ,hire more staff ,if I couldn't fill the seats. I think most businesses act that way. I certainly wouldn't do it if the cost /benefit ratio isn't greater than parking my cash reserve in a safe place with a modest return .
That is in fact what is happening . Businesses with cash are keeping it. If you think taxing business activity will change that then you are living in a Keynsian dream.

Quote:

Originally Posted by excon

What is going on in Washington, or for that matter what's going on in my own city, and the "uncertainty" of where any of it leads, would have NOTHING to do with my decision - absolutely nothing. Besides, I HATE grunt work

Good thing you don't deal with Hazmat. What goes on in Washington and in Raleigh has a daily effect on my operations.

I guess I do run my business differently. I have to equip another man before he can produce (or woman). If the business isn't there, or taxes make it too expensive to put another truck on the road, the truck doesn't go on the road.

Quote:

Originally Posted by Catsmine

I guess I do run my business differently. I have to equip another man before he can produce (or woman). If the business isn't there, or taxes make it too expensive to put another truck on the road, the truck doesn't go on the road.

Hello again, Cats:

No you don't. You just change the discussion when it's convenient... You SAID that you can AFFORD an employee, and THAT was the premise of our discussion. Apparently, you can't afford one after all. That's not running your business differently. It's using your calculator correctly, even if a bit late.

excon

Quote:

Originally Posted by excon

Hello again, Cats:

No you don't. You just change the discussion when it's convenient... You SAID that you can AFFORD an employee, and THAT was the premise of our discussion. Apparently, you can't afford one after all. That's not running your business differently. It's using your calculator correctly, even if a bit late.

excon

From what Im seeing it mostly depends on the type and nature of the bisiness your in. I visit many businesses daily. My boots are on the ground and my ear is always open to what's going on in a lot of industries. Right now its about confidence. Its not really there at the moment. Too many people are worried that the jobs they have may disappear. Employers are demanding more of the workforce that exists until it gets better by their opinion. Ive seen the worst of it with businesses closing and sending home thousands as well as mom and pop ones that struggle to keep what they have and not lay off. SO from a owners stand point its all a relative term as to what's going on with the market. We all have our own niche to eek out.

Quote:

Originally Posted by califdadof3

Right now its about confidence. Its not really there at the moment.

Hello again, dad:

If I'm confident that there's somebody to BUY what I have to SELL, I'm expanding. That's just me. It truly has NOTHING to do with what politicians are DOING.

excon

Quote:

Originally Posted by excon

Hello again, dad:

If I'm confident that there's somebody to BUY what I have to SELL, I'm expanding. That's just me. It truly has NOTHING to do with what politicians are DOING.

excon

What if you were watching the news and they said about a new proposed tax coming your way and to your industry. You might look into it and if found to be true you may hold off on your decisions until the dinosaur moves either way. And that is exactly what is going on at this time.

Those that are fotunate enough to have a job are working harder and those that don't are waiting longer to get one. Its not a golden time at this hour. Lets just hope things turn soon so everyone can enjoy prosperity.

By the way, it's now past sundown down east. Shanah Tovah, Ex.

So this Republican is against the tax cuts for the rich. Why? Because I don't think the tax cuts would be generating new ventures, new jobs, new money. I believe the tax cuts would just line a few more pockets (not mine either).