Letter from the Boss

      Letter from the Boss,
     
      As the CFO of this business that employees 140 people, I have resigned
      myself to the fact that Barrack Obama will be our next President, and
      that our taxes and government fees will increase in a BIG way.

      To compensate for these increases, I figure that the Clients will have
      to see an increase in our fees to them of about 8% but since we cannot
       increase our fees right now due to the dismal state of our economy, we
      will have to lay off eight of our employees instead. This has really been
      eating at me for a while, as we believe we are family here and I
      didn't know how to choose who will have to go.
     
      So, this is what I did. I strolled thru our parking lot and found 8
     Obama bumper stickers on our employees' cars and have decided these
     folks will be the first to be laid off. I can't think of a more fair
     way to approach this problem. These folks wanted change; I gave it to them.
     
      If you have a better idea, let me know.
     
      Sincerely,
     
      The Boss

come on guy's have some faith, were at the lowest of lows, we can only go up

The Boss cannot even spell the next president's name correct, wouldn't take what he has to say too seriously.

eric lavine wrote: come on guy's have some faith, were at the lowest of lows, we can only go up

Just when you think you've hit the bottom, someone throws you a shovel.

Just look at the Lions

Steve

You guys do know that we currently have tax brackets right? You realize that the rich already pay more taxes than the poor by a signifcant margin right? Do you guys all think that different taxes based on income is some new idea brought on by Barack?

behindpropeller wrote: M3Fan wrote: You guys do know that we currently have tax brackets right? You realize that the rich already pay more taxes than the poor by a signifcant margin right? Do you guys all think that different taxes based on income is some new idea brought on by Barack? I know that... The problem is increasing the tax burden on companies.....

Tim, you hit one of the nails on the head. Everyone is throwing the $250K number around as if $250K is what the taxpayer's paychecks add up to. But owners of small companies, depending on how the company is set up, sub-S for example, get taxed personally on things they buy to grow the company, and in turn, create more jobs.
Example; A company owner buys a new delivery truck ($120,000 for just the Semi-tractor), which employs a driver to operate, and the owner gets taxed on the value of the truck. It doesn't take much to reach that $250K threshold, when growing a company in this manner.
Now Obama wants to drastically increase the taxes of this "high income" taxpayer.
It makes it tough on the small to medium size companies.

Sorry so long winded, but it's cause for concern.

Steve
Taxpayer

All together now...FAIR TAX!!!    

tullfooter wrote: behindpropeller wrote: M3Fan wrote: You guys do know that we currently have tax brackets right? You realize that the rich already pay more taxes than the poor by a signifcant margin right? Do you guys all think that different taxes based on income is some new idea brought on by Barack? I know that... The problem is increasing the tax burden on companies..... Tim, you hit one of the nails on the head. Everyone is throwing the $250K number around as if $250K is what the taxpayer's paychecks add up to. But owners of small companies, depending on how the company is set up, sub-S for example, get taxed personally on things they buy to grow the company, and in turn, create more jobs. Example; A company owner buys a new delivery truck ($120,000 for just the Semi-tractor), which employs a driver to operate, and the owner gets taxed on the value of the truck. It doesn't take much to reach that $250K threshold, when growing a company in this manner. Now Obama wants to drastically increase the taxes of this "high income" taxpayer. It makes it tough on the small to medium size companies. Sorry so long winded, but it's cause for concern. Steve Taxpayer

Steve, I understand your concern but not sure I understand your analogy. Isn't that equipment deductible at 100% up to $250,000 under Section 179 capitol expenses? Vehichles with a gross weight over 6000# should apply. Why would it ADD to you income instead of be shown as an expense? Yes you pay sales tax on the machinery but it in turn gets you the deduction on the bottom line.

My biggest concern is that the Section 179 deductions are already being dropped from $250,000 to $128,000 for next year so thats where the small business mans income will essentially go up because there are less deductions for his spending in capitol expansion. When I started in business 11 years ago the 179 cap was $10400, it grew substantially under the present administration and helped myself and many businesses grow and provide jobs, now that is going away and we'll have to depreciate those types of investments over 7 years. You know what I do with that type of incentive,, nothing. I keep my money and say the hell with everybody else. I don't grow my business and infact because I have no incentive to grow my business it in essence shrinks. I pay more taxes and work for the day I can bail out of being self employeed and trying to support more families than my own.

This new administration MUST support the small business owner and not penalize them for success.

eric lavine wrote: poor business practices killed the auto companies and its no wonder they go abroad for manufacturing. the auto companies dont owe thier employees anything except a job. F-me if you want, I work hard everyday and nobody owes me anything. The great employees up here for LTV killed that company too...they shut down and brought in a non union force and are turning profits. Im not knocking the union, but concessions need to be made and pay should be based on a one on one basis, the more you produce the more you get paid. the pride left along time ago and the employees fell into a rut with the attitude of this company owes me, it doesnt

   Eric,

   I understand what you're saying.I feel the exact same way. No one is going to be there to hold my hand if the bottom falls out.Goes back to pride and people being responsible for their own actions.The automakers got themselves into it,they can get themselves out. There is alot of speculation as to what would happen if the big three went out,obviously most of it very negative,but what are the options? You KNOW nothing will change if the government bails them out.Where will they be in 2 more years if the economy is still at a standstill.Right where they are now.
   I saw the following quote on a post on Wakeworld last night,I thought this pretty much summed it up......

      "Its like helping out a drug addict, I'm not opposed to giving him a second chance. But the only way I'm helping him out is with rehabilitation, job training, and things to get him out of the rut he's in. Giving him a handout just supports his drug habit."

   Mike

I agree Mike. Didn't the Brits bail out an auto co in the late 80's to only see it fail shortly after?

Here is an interesting read:

Link

While the Unions do play a significant part in the decline of the automakers, someone had to agree to those contracts....

& don't forget about the cost of health insurance, overhead, etc, etc, etc... Companies are moving their operations overseas because we've simply priced ourselves out of the market. I agree that everyone is entitled to a fair days wage, but is someone who's working @ a plant putting a door on a car, or bolting seats, etc, etc, etc... really worth the 50-60k they're being paid? Heck NO!! The auto companies failed to have a backbone while in negotiations, and are now paying the price for that. As well as rising costs completely unrelated to Unions...

Nate

For as big as GM is they could have their own medical system. Small satellite clinics and a main med center for surgery stuff. So that would do away with health insurance problem. If you retire from GM you need to live by a satelitte clinic if you want health care...thats just how it is.

GM spent 17 million on viagra in '06...I have to assume that has escalated.   

No pun intended?!!?   

Andy wrote: As a union plumber, working in a 3 man shop (which I really enjoy)I cant speak for the auto industry. What I can tell you is, there is not a day that goes by or a second of my time, that pride and honest workmanship are NOT a huge factor. If you want to talk badly about an industry, go ahead. If you insist upon throwing unions against a wall as a whole. Thats a different story. My own personal view on the auto industry is let them eat theirselves. Contracts are negotiated by someone. I leave my house at 5:30 every morning 5 days a week. Usually I won't get home till after 6. I usually make a 40hr check. My commute is only 30 minutes. Tell me I don't give. I cant afford a 50k truck. I cant even afford a 25k truck right now. My wife stays home days with our daughter, and works customer svc nights from home. Tell me we dont need SOME kind of change. Just because he is pres-elect doesn't mean all his views will be shared through congress. Checks and balances anyone?

Andy-
I applauded your hard work, but what does being in a union have to do with that. Are you saying the only reason you work hard is because you are in a union? Of course not!

I think a lot of you are missing the bigger picture when you talk about letting the automakers fail. Let’s say we do let GM go into bankruptcy. Are you going to buy a car from them not knowing if they will ever come out of it and be able to provide service for said car? No. Neither is anyone else. There are other options out there. The airline industry could do it because there are very limited choices. If GM/Ford goes bankrupt, they will never come out. Then we will have at least 5 million more jobs lost. You think its bad now, just wait. And if you think you will not be affected because you don't work in the auto industry, think again. With an additional 5MM people out of work, in a flat out depression, people will be buying less of everything. That includes trans rebuilds, Eric and castings, Tull and everything else anyone here makes or provides.

Now, breaking the union, I believe, has a large part to play in this. Why does everyone assume that to do this, they have to file bankruptcy? Congress has the power to alter the laws that give these unions so much power. Will they? Heck no. Pelosi, Reed, Dodd in charge and now Obama on the way to the big chair. What a joke. There are ways the government can give the (not so) big three the LOANS they are asking for and change legislation so they can be helpful. But they would rather point fingers at the past than try to fix the future.

As far as taxes. I can tell you for sure that the medium size manufacturing plant that I work at WILL close its doors and move all manufacturing to Mexico, where we already have a plant that has the capacity, if taxes are raised. We are barely hanging on as it is right now in our current economy. 140 more people out of work.

Sorry for the rambling, just a lot on my mind.