August 2010
2 posts
Unemployment Claims Jump
Unexpectedly? Are you kidding? Why hire people when you are pushing a rock up a hill with this current administration? Until they get around to creating incentives to build businesses, instead of penalizing successful people, things will continue to get worse. Don’t be surprised.
http://news.yahoo.com/s/ap/us_economy
So How Are Things?
I’ve been spending the past 10 months trying to keep my business on track, keep my employees paid, and plan for the upcoming tax hit we’ll take in January. What have you been doing?
The market is forward looking, and as I look forward I can only anticipate tougher times ahead for our country. Indeed, it looks like unemployment will move up again, not down, as we await the July...
October 2009
2 posts
The Stimulus Joke
Alright, if you missed it, here it is again. Council of Economic Advisers’ chair Christine Romer’s observations about the stimulus package. Romer said that “the government’s economic stimulus spending has already had its biggest impact,” and will (in Romer’s words) “likely be contributing little to further growth by the middle of next year.”
Wow,...
More of the Same
We keep hearing that the stimulus is working even as 10% of the population remains unemployed. We keep hearing that our healthcare is screwed up and needs the government to make it right, yet the government can’t take care of the current medical programs that have been around for decades. They are basically bankrupt.
So what’s the answer? I screwed up, give me another chance? The...
August 2009
4 posts
Hey Obama, So What is it?
It started out as the only way to save our economy, yet here we are and the economy is improving…without changes to healthcare and without any real stimulus spending getting to work yet.
It then became a story about reforming our health care since it was so completely screwed up, according to the administration. The people spoke and said they actually like their health care plans just the...
Krugman and Big Government
Let’s give it to Paul Krugman. He can find a way to twist things to utter amazement. For instance, in his opinion at http://www.nytimes.com/2009/08/10/opinion/10krugman.html?_r=1&ref=opinion he states: “From the beginning, I argued that the American Recovery and Reinvestment Act, a k a the Obama stimulus plan, was too small. Nonetheless, reasonable estimates suggest that around a...
Politics of Fear
This headline has been associated with the Bush administration for years. Using fear of terrorism and attacks on U.S. soil gave Bush the ability to execute on his foreign policy. Many on the left have bitterly attacked this strategy.
Ironically, we are seeing the exact same approach with the Obama administration. Instead of wars on foreign land, we are waging a domestic war on capitalism. ...
Here it Comes for the 95%
Remember the campaign promises from Obama that the bottom 95% won’t see their taxes go up? That is about to change as the massive spending that’s already taken place in just six months comes home to roost…on top of the proposed spending that Congress and Obama are pushing hard for.
...
July 2009
5 posts
Healthcare Lies
When the President and Congress tell you that you can keep your current insurance and continue to see your existing doctor if you want to, they are telling a complete lie. They tell you this in the hope that you’ll not listen to the truth and believe what they tell you until it’s too late.
How do I know? As a business owner with 50 employees who are eligible for our health care plan...
The Housing Mess (Continued)
When will our politicians ever learn? The Congress is now threatening banks that are foreclosing on mortgages that aren’t being paid. It was the Congress that created these foreclosures when they forced banks to loan money to people who couldn’t pay.
They did this through the Community Reinvestment Act in 1977 (look it up so you understand how this played a major role in the current...
Liberal Suicide
In a case of “here we go again”, the Democrats are following the Republicans down the spending path. Will anyone ever stop repeating the sins of the past?
http://www.nytimes.com/2009/07/21/opinion/21brooks.html
Say it Again
Do the politicians in Washington think that you’re ‘rich’ because someone handed you a bucket of money? Or that you hit the lottery?
The vast majority of the ‘rich’ are self made…meaning they built a business over decades with their own money and hard work. While they were getting ‘rich’, they paid a disproportionate share of all income taxes. ...
Taxing the Rich...This Time for Healthcare
The pot of gold is about to run out on democrats…that is, taxing the rich to pay for things that other people aren’t willing to pay for. For the latest, check out this link: http://news.yahoo.com/s/ap/20090709/ap_on_go_co/us_health_care_overhaul
The rich don’t have a never ending pot of gold. People like me are considered rich, yet we run small businesses that have to lay off...
June 2009
5 posts
New Jersey Raises State Income Taxes...Again!
It’s basically a double. Five years ago, effective tax rates in NJ went up by several percentage points. As of today, they are set to go up again for the highest earners. As one of those top earners, what am I thinking about right now? How to take my earnings, and my tax revenues, to another state that is more business friendly.
Instead of wooing people like me, states like NY, NJ and...
More Taxes, Fewer Jobs
The headline says it all. As taxes go up, people like me need to take the money we would use to start a new business or expand an existing one and allocate it to the government. Will that create new jobs?
I’ll let the unemployment numbers today, and going forward, give you the answer: 10% plus unemployment is coming…fast.
More on Climate Change
As the house passes a historic bill to introduce “cap and trade”…read: TAX INCREASE FOR ALL, many former climate change cheerleaders are now reversing course. Obama’s own words speak to the length of time it will take for something like this to have an impact, if ever. So what’s the big hurry?
It’s back to the line by Rahm Emanuel: “You never want a...
The Climate Change Joke
You’d think someone was kidding, but in reality, they aren’t. Did you know that more greenhouse gasses are emitted by belching farm animals than all of the other things you usually see associated with the whole climate change debate.
We’ve gone from calling it Global Warming, to Climate Change…and now we are faced with the reality that living creatures are the greatest...
The Five Month MBA
If you owned a business would you hire an employee with zero business experience and make him your CFO? Would you let him drastically change every aspect of your business in that first five months? Would you throw away 200 years of facts: the fact that you’ve created the wealthiest business in the world?
I do own a business and I can tell you that nobody would do what I just outlined. ...
May 2009
5 posts
Higher Taxes and Growth
If you don’t believe that higher taxes negatively affect revenues and growth, think again. I see it from the perspective of a small business. When almost half of my profits go to pay taxes, and the other half needs to be there for the next month’s cash flow needs, there isn’t anything left over to fuel growth or new hires.
That leads to a stagnant business environment and...
Decision Making
Check out the latest reversal…this guy cannot make a decision. Now he has reversed himself on the prisoner ‘abuse’ photos. He should have rejected this earlier, but finally has come to his senses.
http://news.yahoo.com/s/ap/us_pentagon_abuse_photos
Leadership? Only a lack of it.
Lack of Leadership
Leaders take responsibility for their actions. They understand consequences. Obama understands neither. That’s why he has consistently thrown everyone, from his pastor to people on his staff, right under the bus.
If you think the guy who authorized the flyover in NYC was the guy they just fired, think again. Obama talks about sacrifice and then spends over 300k of YOUR MONEY to take a...
White House Military Liaison Ousted Over...
Shocking…Obama throws another one of his guys under the bus. That isn’t a shock for those of us who watched him throw his pastor and others under that same bus during his campaign.
Another great example of leadership.
All Checks, No Balances
For those of you who are excited about all the “change” we are seeing…as well as the cheers for “yes we can”…here’s a sobering thought:
The structure of our government for the past 200 plus years has been designed around the concept of checks and balances. No one branch of government should be able to take over and distort this. Unfortunately, we had...
Your New Tax Cut
In case you missed it, Barack Obama said that the latest wave of refinancings acts a “tax cut” for Americans. This guy is truly unbelievable. Is this part of his tax cutting strategy????
I understand that people are in love with the guy and he is a great communcator, but this one takes the cake. Call it what it is…a lower mortgage payment. If you want to cut taxes, how about...
April 2009
6 posts
Where I've Been
It’s been a bit tough lately to stay on top of my blog here. The main culprit? Taxes. Just as this market slowed, I had to come up with hundreds of thousands of dollars to pay taxes for 2008 as well as estimated taxes for the first quarter of 2009. Let’s just say I was distracted as I went into more debt to pay my taxes in my profitable small business- an interesting concept or some...
John Murtha and The Abuse of Your Tax Dollars
One of the leading democrats in Congress, John Murtha, has no problem spending ridiculous amounts of money on “infrastructure”. To the tune of 150 million dollars, the John Murtha Airport in Pennsylvania has three flights a day to D.C.
Each ticket is subsidized with federal money in that is almost equal to the price the consumer pays. The place is a virtual graveyard. Don’t...
The Real American Dream
My dad’s parents came to this country and started with nothing. They had 4 children who went on to a variety of careers in finance and civil service. My dad had 7 kids who went on to various endeavors. My dad went through the depression, fought in World War II, raised all those kids, plus some grand kids…and gave us the opportunity to do better than he did.
Today I own my own...
I'm Back...
Ok, I’ve been offline a bit, but now I’m back. It’s the day after “tax day” and I’m still scrambling to get money in my account to cover the shortfall from last year, plus my estimated taxes for the first quarter. My marginal tax rate for state and federal income taxes currently sits at 45%. Factor in all the other taxes each of us pay, whether it be for gas,...
Possible Cabinet Member?
I just caught this article on an IRS Agent that failed to pay taxes. Based on the continued parade of appointees that can’t seem to get their taxes paid correctly, I thought I’d offer this guy up for a postion in the Obama White House
http://finance.yahoo.com/news/Calif-IRS-agent-admits-apf-14795847.html
Better yet, since even our wonderful politicians can’t seem to figure out...
March 2009
17 posts
Autos and Politics
What is it with the idea that something is “too big to fail”? Our entire economy, for over 200 years, has been built on the evolution of companies and business in general. That’s natural. Unfortunately, the natural course of evolution is being interrupted by politicians when it comes to the car business.
Bush made the first mistake by lending money to companies that would be...
Losing the Private Sector
As any economist will tell you, the private sector, and in particular small business, creates more than half of all jobs. This is true regardless of your party affiliation.
Here’s a good opinion piece that highlights the current issues the private sector faces when it comes to the politicians that are trying to run everything, and anything, they can…whether or not they have a clue.
...
Privacy and Liberals
It’s ironic that the far left will scream up and down about privacy right alongside the ACLU. When it comes to the current AIG scandal, politicians like Barney Frank are calling for names to be disclosed…and the ÅCLU is strangely quiet.
So let me get this straight; the “illegal” wiretapping under Bush (which Obama eventually voted for even though he was against it?)...
The French
When France starts giving business lectures regarding fiscal restraint you know you’ve entered a new phase here in America.
http://online.wsj.com/article/SB123785260118019581.html
A Trillion Reasons...And Counting...
The Congressional Budget Office has come out with it’s report on the Obama stimulus plan and it’s not good. Here’s the summary of their finding:
…President Obama’s economic recovery package will actually hurt the economy more in the long run than if he were to do nothing, the nonpartisan Congressional Budget Office said Wednesday.
For the full article on their...
The Entitlement Mentality
So here we are, at an interesting place in our history. We have the government railing against business and condemning those who have earned bonuses based on contracts that their companies signed off on. As a result of all of the political pandering and ‘outrage’ by the same politicians who led us down this path, individuals are being harassed in their homes for their success in...
Obama's Budget and Deficits
In 20 months under Obama’s plan we will rack up more debt than George Bush did in eight years while dealing with two wars, 9/11 and Katrina. Today, the Congressional Budget Office stated that the deficits will actually be worse than originally outlined last month…shocking!
Here’s the latest article:
http://news.yahoo.com/s/ap/20090320/ap_on_go_pr_wh/obama_budget
The irony is...
Barney Frank's Follie
Would somebody please tell Barney Frank to shut up. He’s trying to deflect attention from the outrage we should have about him by railing against bonuses. Ironically, he’s railing against bonuses to Freddie Mac and Fannie Mae: http://news.yahoo.com/s/ap/20090320/ap_on_bi_ge/mortgage_giants_bonuses
Yet it was these organizations that are at the root cause of our current situation....
AIG Outrage
As all the politicians are throwing up their hands and shouting about the outrage of AIG paying bonuses to employees, I ask you where the outrage is with regards to congress? That’s the real outrage. The fact that these bozos couldn’t run the corner grocery store let alone anything else…including our government.
Didn’t they bother to review the business and put in...
Debt Explosion
For those who lamented the explosion in spending during the Bush administration over 8 years, you’re about to see that lapped in the first 20 months of the Obama administration. That’s right. Many of us thought the republicans had lost their way as they spent like drunks…now, the Obama team shows us that was merely a warm up act.
Using the economic crisis as a reason to spend...
The Economy is Sound
Last September, when the economy was far better off than it is today, you heard John McCain proclaim that the U.S. economy was fundamentally sound. The attack began moments later and included Barack Obama mocking the comments and sounding off about McCain being out of touch with America and Main Street.
Low and behold, Obama and his team have been making very similar statements beginning last...
A Taxing Reality
OK, you’re probably sick of reading posts about taxes, but I had to address something I just read in today’s Wall Street Journal. The entertainment industry is skewed to the left in a very big way, with many in Hollywood pushing for higher taxes on individuals and businesses. Interesting how their idealogy doesn’t apply to their own industry.
Today’s opinion “Tax...
Theory vs. Reality
I’ve heard from my democratic friends on this blog as they’ve explained the reasons for some of the steps being taken today by our new administration and congress. They explain the theory behind steps that have been taken to ‘stimulate’ our economy and so forth.
As a business owner I’m not interested in theory…I’m interested in reality. So here’s...
The Rich Can Afford Higher Taxes?
How does one become ‘Rich’. You either inherit wealth, or you create it. Regardless of how you get ‘rich’, the current tax system is punitive in nature to these individuals.
We have a progressive tax system which already means that the rich pay a disproportionate share of the tax load. Case in point; the top 1% earn 22% of all income, yet pay 40% of all taxes. The...
Taking Jobs
Tell me what the government doesn’t get when it comes to the new ‘stimulus’ plan. How about the fact that business owners that create the jobs and employ more than half of all Americans won’t be hiring anytime soon. That’s the reality of the market today.
Why should it be any different? The message coming from Washington is that my taxes will be going up sharply...
The Price You Pay
Getting a business up and running requires incredible sacrifice. It’s the reason why most people don’t bother to even try. In my case, it required a move to a town where we didn’t know a single resident…and the equity in my house. Talk about a big bet.
What were the odds of success? Depending on who you talk to or what stats you use, roughly one in ten start...
The Great Takeaway
As a business owner that spent the last seven years mortgaging my future to build a viable business, I’m very concerned about the rhetoric coming from Obama and his team with regards to the ‘rich’. By his definition, I’m beyond wealthy at this point and a prime target for his redistribution strategy. What politicians don’t understand (most have never run a business...