Thursday, July 28, 2011

The Tax Payers are Tired

I am tired of working for the government. I keep getting taxed more and more. Our government takes our money and spends it foolishly at best. Their party days need to end. We need serious leaders not career politicians. I want the return of the founders vision where people go to Washington for but a season and then return to their personal affairs. These limited exposures to all the money and power could get us a real working government that understands and observes the limits of our constitution.

Maybe we need a new pay system for our leaders. Full payment for service up to two terms and then reduce it by half for every term afterward with no retirement package.

Maybe they need a new itinerary that says they have to spend more time with their constituents then in Washington DC. Perhaps if they had to spend time with those who want them to represent them, we might actually get represented.

Probably the number one thing on our list is stop spending. We can only be bled out so far and I think we have reached that point.

We don't need to raise the debt ceiling we need to cut the legs off of the spending plans.

We don't need to raise the debt ceiling we need to raise employment so more people pay into the system.

We don't need to raise the debt ceiling we need to stop illegal immigration and the massive funding that feeds these leaches on the system.

There are a lot of things that We The People want done. Unfortunately, everyone we elect to do them turns tail. I will say I am rather impressed with our current freshman class in DC. We need to send a few more like them. It is nice to see a politician with a spine and a conscious.

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Monday, June 06, 2011

Pitty Party

Have you ever done something wrong and then felt so bad about it you tell everyone? I mean you go from person to person with your head hung low and you hand out pity party invitations to all you come in contact with.

It starts off like a high school dance where everyone is a wall flower and nobody gets involved. Then someone secure in themselves or nutty in the head, starts to dance and everyone joins in.

In the case of the pity party, everyone starts slamming you. Suddenly you realize you don't like it and you start getting mad. Now you invited everyone to the party and now you want them to quit and go home. You should have never started this in the first place.

It is all right to feel down when you make mistakes. It is a sign of high moral character when you can admit them. The challenge is doing it in such an way that it breeds learning and future success. Don't let a mistake stop you permanently. How you come back from a set back makes a difference. Failure is an event not a life style.

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Thursday, March 17, 2011

The Truth About Unions

The unions of our parents and grand parents don't exist any longer. No longer is it about the worker. It is now about the Union and only the union.


Why Unions Are Harmful to Workers
By John Lott


Wisconsin Governor Scott Walker has finally won his first battle with public employee unions. But the fight against excessive union rights now moves to Idaho, Indiana, Michigan, New Hampshire, Ohio, and Tennessee.
Of course, union leaders are upset, with AFL-CIO President Richard Trumka recently telling PBS’s "News Hour": “This is about [Gov. Scott Walker] trying to take away the rights of workers to come together to bargain . . . .”
But in fact, Governor Walker’s budget will help the vast majority of workers in the state. Mr. Trumka naturally wants to make it appear that he is fighting for workers generally, but that is not the case. He is just fighting for some workers, but he is hurting other workers -- other union workers who are laid off because the state cannot afford them or other workers who are forced to pay higher taxes.
Unions are harmful because they act as monopolies. If the union members won’t work, the law makes it extremely difficult for anyone else to step in and do their jobs. As a result, union workers have little competition -- so they can demand higher wages and do less work.
By threatening to stop work if companies don’t pay employees more, unions force companies to layoff some workers. That hurts some union workers. Unions don't just pit workers against employers. They pit a select group of workers against consumers, stockholders, and other workers. Unions don't even make agreements that are in the interest of all their own workers, just those in the majority, usually just older workers with more seniority.

Suppose demands for higher wages or benefits means 20 percent of unionized workers would be fired. That isn't such a hard decision for a union. Twenty percent of its members will oppose the agreement, but they won't be union members for long. Most of the remaining 80 percent are likely to support the agreement.
Unions also protect seniority, not the most productive workers. When layoffs occur, it is the most recently hired workers who are laid off first.
Recently, there have been cases of teachers’ unions holding lotteries to see who gets laid off. When was the last time you saw a private company make hiring/firing decisions that way?
Union advocates talk about the "right" to collective bargaining, but it is unclear why this "right" trumps the right of other workers to have a job.
In Wisconsin, Governor Scott Walker threatened to lay off 6,000 workers if he wasn't able to get his union bill passed. But Trumka and other union members, over the objections of Wisconsin’s non-partisan Legislative Fiscal Bureau, claim that the layoffs are all part of budget trickery, alleging that Wisconsin actually has a budget surplus.
Bad corporate monopolies face competition. By restricting sales and raising prices, other companies see a chance to start producing the product and make profits.
There is a reason why only 6.9 percent of private sector workers are in unions. Unions have tried reduce this competition by representing the workers in an entire industry, such as steel, cars, or coal mining. That way they can raise wages without worrying about non-union companies getting the jobs. But ultimately there is still competition from foreign workers. Unions help ship a lot of would be American jobs overseas.
So how do unions end up representing 36.2 percent of public sector workers? Simply put, they have an additional type of monopoly. Not only do unions have a monopoly in bargaining with the government, the government has a kind of monopoly as well.
Take education. Parents pay for public education through their property and other taxes -- whether they send their kids to public or private schools. Public schools must really be a lot worse than private ones before parents are willing to pay the public school taxes and still pay private school tuition on top of that -- effectively paying twice for school.
In contrast, private schools that kept paying more and more for teachers would quickly find themselves out of business. Not surprisingly, teacher unions not only oppose any weakening in their current rules that they alone represent teachers in any negotiations, but they also strongly oppose anything that would create competition for public schools, whether it be charter schools, vouchers or tax credits.
Gov. Walker was willing to compromise and let public employee unions negotiate over everything: salaries without limit, mandatory overtime, performance bonuses, hazardous duty pay and classroom size for teachers. Yet, he drew the line at pensions, which have accumulated huge unfunded liabilities. At least voters could see the current costs of paying public employees higher salaries, but both politicians and unions have proven untrustworthy over the hidden long-term costs of these retirement payments. But even that was too much for the unions and their Democratic allies.
Wisconsin’s public employee unions have been problematic in another way: high mandatory dues. With union dues of $500 to $1,000, employees have had to give money to unions whether they approved of what they did with the money or not. Walker’s changes finally give government employees the choice of whether they would rather spend their money on something other than unions. The new law doesn’t supersede union contracts that are already in place.
Unfortunately, Wisconsin Secretary of State Doug La Follette, a Democrat, has taken the unprecedented practice of delaying a governor’s request to immediately publish the new law, a requirement that must be met before the law goes into effect. Delaying the publication date until March 25 allows unions and local Democrat officials around Wisconsin rush to pass contract extensions that protect unions from increased contributions to their pensions and health care benefits.
Few would sympathize with a company that raises prices by restricting the amount they produce, let alone supporting the government protecting the monopoly from competition. But unions do that and more, and they only accomplish this through government force.
Well-paid union members shouldn’t be given benefits at the expense of other Americans.


Read more

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Thursday, November 04, 2010

More, What We Believe!

Drop down the page a couple posts and you will see, What We Believe, a post with three videos. Here is a fourth video to add to the collection. Each stands well on its own but together they define a framework that made America great.



Not understanding these key principals has lead to the chaos and economic plight we now suffer from. Once again, Bill Whittle finds the words to make the clearest case so all of us can understand. I have found myself in this very conversation recently fumbling for clarity of words so well spoken right here.

If you skipped the video and just read on, you have lost much. Take ten minutes and gain over two centuries of knowledge on law. You wont be disappointed and may even be a little excited. Those things you have understood and known to be true are clearly brought forth by a talented speaker.

Thanks Joe for pointing this out while we have been so busy looking at other things.

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Wednesday, October 13, 2010

Fixing The Economy

Yesterday, Fox News put out a poll asking:
Can Anything Be Done to Fix America’s Economy?
I was not impressed with the article that stimulated the poll. Nor was I impressed with the options they offered. I couldn't help but add some comments. Below is the two comments I added. Go Check out the poll and add yours as well, or offer up yours here.

Comment 1
The problem in America comes down to people wanting somebody else to pay for their problem. The politician taking advantage of this human weakness, offers to do just that. We don't ask how. They then create a law giving someone special status over someone else. Slowly, we steal the life blood from everyone resulting in nothing.

We need to cut business taxes down to the level of Ireland, 11%.
We need to eliminate the death tax, Pulling this money out of the system on a persons death robs everyone of the investments.
We need to reduce government and the layers of bureaucracy that have been created. Are entire constitutional government ran on less then 5% for over 150 years. Why do we need, including fees and misc revenue items, 30%?
Change the Capital investment deduction to the following: A business can write off up to 100% of the percentage of the investment made in America on the first year of implementation. This would bolster business growth and American business opportunities at the same time. All other investments, and the percentage not American, would use the current tax deduction schedule.

This is my short list I could go on.


Comment 2
What do we as citizens need to do to turn this nation around?

Vote - I don't mean show up and pick at random. I mean educate yourself on the issues and the people. Know what it is you are authorizing and who. I don't care if they have a D or an R by their name. Are they a person of character? Will they adhere to the constitution and the limits as written? Have they ever ran a business or been in charge of a group of people? Have they ever had to maintain a budget or make a payroll? Do they willingly admit to past mistakes and yet rise above and move forward? These are the ones to vote for.

Write - Keep your representatives informed of your wishes. Don't put them out there alone. Let them know how you feel about the bills and issues at hand.

Learn - know your history. Look over American history seeking as many first sources as possible. Understand where we have been and what it took to get here. Help those you know gain in this knowledge as well. It wasn't that long ago when issues of the constitution were common items of discussion across the table with friends and family. Bring back those days.

Strength - Stand for something. Don't just buy into the person next to you's bit. Learn and claim your own standards. Boldly hoist them as a banner in your life and defend them in the battle of ideas. This will prove to sharpen your character while you do so with others.

Honesty - Hold the truth as sacred. Don't settle for lies and half-lies (half-truths). Don't accept fence sitters. Stand for something so you don't fall for anything.

Selfless - Think of the future and those who will follow. Leave something better behind.

If we as citizens would do these things, our nation would be transformed to greatness again.

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Sunday, October 10, 2010

Why We Can Say NO to Higher Taxes

Let me First Thank Joe for Pointing out this video.



In multiple blog entries I have discussed the fact that the tax burden on American business and its citizens has been too high. No one seems to want to discuss the fact that the average tax rate prior to 1905 was 5%. Could you imagine your family's condition if your tax burden was back at that level? Can you imagine the growth and expansion of business and industry? We as a nation would be the most desirable place on the planet to locate a business. Rather then companies bolting from our shores, they would be lining up to enter. No longer would employment be a problem of finding a job. It would instead be finding enough employees to fill all the available jobs. (current combined state and federal taxes on business average 42%.)

Don't let the democrats and the ruling elites try to further stifle you and your efforts as a free people. Don't make the assumption that the republicans are looking out for you either. Choose the most conservative, constitution loving candidate who knows what it takes to meet a payroll in a business setting. Stay after them and keep them focuses on serving their constituents and restoring our nation.

If you thought you weren't needed after November, think again. This is going to take four or five election cycles and a lot of input from you and I as citizens, to start seeing things turn around. We can't let them govern without input again.

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Sunday, September 12, 2010

The American People Already Know the Truth

The media is attempting to tame the angst of the voter. No one wants to blame BO for anything tied to the economy but the electorate isn't buying. Now I find an article that does a fair job at trying to paint Obama into a new era of presidency.

Such powerlessness in the face of economic free fall has emerged as a hallmark of the modern presidency. While Mr. Obama is facing a more acute economic crisis moment than his predecessors, characterized by a near depression, the truth is that every president going back to Jimmy Carter, at one point or another, has had to campaign or govern in an environment dominated by the same cyclical and stubborn factors — recession, unemployment, rising energy costs. And so perhaps Mr. Obama’s presidency, as it reaches its midway point, is best understood not in isolation, but rather as part of a longer and still undefined political moment.

The farther we get from presidencies, after all, the more we tend to view them as belonging to periods rather than individuals, as sometimes overlapping clusters along the country’s historical continuum. We’ve had pre-Civil War-era and Reconstruction-era presidents, Industrial-era presidents and Depression-era presidents. The last discernible era belonged unmistakably to the cold war and can be said to have encompassed every president from Harry Truman through Ronald Reagan, all of whom served under the shadow of Armageddon.

When historians look back 50 years from now, in what era will they place Mr. Obama’s presidency, and what does it say about the challenges he faces?


Projecting his ultimate greatness in the future, they attempt to create a special class or situation that will absolve him from his apparent failures. Oddly they start off calling his current situation part of a normal cycle. They don't bother showing how some of them over came the problems, while others only made them worse.

Historians have different ways of looking at the question. But in interviews, several hit on the same basic theme, which is that Mr. Obama and his immediate predecessors have been forced to contend with the erosion of self-sufficiency. In other words, until the end of the Soviet Union, America’s economic and national security were largely self-determined, thanks to its manufacturing might and its ability to negotiate treaties with other states. But the advent of truly global markets, along with threats from non-state forces like Al Qaeda, changed all that. Now we live in an integrated world where American jobs rely on the economic policies of governments in Asia or Latin America, while our security is subject to the whims of a cleric living in a cave.


In their attempt to confuse and remove blame from their leader, they inadvertently gave away the answer to the whole thing. The key, no one wants to talk about, fell out of their pocket. The Key, "the erosion of self-sufficiency", is the very issue that would be whole heartedly embraced by almost all Americans.
Our power came from self-sufficiency. We really didn't need anyone as much as they needed us. We mined it, made it, and even created it right here in the USA. Through regulation and environmentalism we have given away much of our independence and with it our freedom. Now we give away our wealth to those who don't like us. We negotiate deals with despots who have no intention of honoring them and no fear of penalty.

What we need is to fix the problem. The next election cycle is just the starting place. We want less government and less government regulation. We want to suspend a number of environmental policies and start using our own resources. We have plenty of oil, coal and gas. We have plenty of people who would be willing to start manufacturing if taxes and regulation made it possible again. We have driven business and manufacturing from our shores but we can bring them back as well.

Vote for candidates who are pro capitalism and pro constitution. Vote for candidates who want to restore independence to America. These are the candidates who will give you real "Hope and Change".

Quotes taken from: The Presidency, Chained to the World fm New York Times.

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Are You Thinking About Starting a Business

I am always on the lookout for things that need to be said. I found this over at Tom's Place. It clearly portrays the uphill battle, that every business must face.

This Is Why There Are No Jobs in America
By Porter Stansberry
Saturday, August 21, 2010

I'd like to make you a business offer.

Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment...

Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in – as long as it's legal.

But I can't give you any capital – you have to come up with that on your own. I won't give you any labor – that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair: to tell you what to do.

Now in return for my rules, I'm going to take roughly half of whatever you make in the business each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits.

You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."

Now... after you've put your hard-earned savings at risk to start this business, and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out – to finally live the good life.

Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I'm happy for you to sell whenever you'd like... because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.

I know... I know... you put up all the original capital. You took all the risks. You put in all of the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.

Oh... and one more thing...

Even after you've sold the business and paid all of my fees... I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth.

After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.

All in all, if you're a very successful entrepreneur... if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public... you'll end up paying me more than 75% of your income over your life. Thanks so much.

I'm sure you'll think my offer is reasonable and happily partner with me... but it doesn't really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.

That's how civil society is supposed to work, right? This is Amerika, isn't it?

That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs...

Regards,

Porter Stansberry

The author captured the plight of American business. No longer are we free to enjoy Life, Liberty and the Pursuit of Happiness. We pay dearly for each one even though the price has been paid in full with the death of many a patriot. The freedoms once guaranteed by our constitution have been so watered down that when one drinks in, expecting to taste freedom, they are left with a bitter, dry mouth.

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Friday, September 03, 2010

Doubts and the Dow

Everyone is going gaga over the Dow. Yes, I am talking about the Dow Jones Industrial Average. It has gone up everyday in September. There has only been three of them. It still hasn't topped where it started at the beginning of the year. People who are heavily invested are still in the red. But, Whoa Nelly, are we excited.



To be totally overtaken with enthusiasm, look we are stuck back at 2004. Nothing is happening here.



It is all a ploy to make us think things are getting better. To make us believe that our president is actually doing something to improve our economy. The truth is that nothing has changed and nothing is really better.

Okay, just so someone doesn't show up and claim that BO has actually improved the stock market since he has been in office. Here is the chart.



On the 17th of February 2009 the president signed the American Recovery and Reinvestment Act. The Dow continued to plunge. When we started to come back, he signs another bill and we plunge again. If you look at each of the drops and then the dates he signs legislation, you will see a pattern. The pattern has some variation with pre or post bill blues and bliss.

The key here is that nothing has been dome to restore confidence in the market. There is always another bill on the block that will take more out of business. There is a constant supply of money draining bills that stop progress and stagnate the market.

Our organizer and chief has no idea what it takes to motivate business into action. You would think all politicians would want to understand this given that most of the tax revenue structure is based on earnings both personal and business. Instead, we see every means possible for closing up business and stopping income earning.

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Friday, July 30, 2010

It's The Economy Stupid

Jobs are the driving factor that improves the economy. The more jobs, the more employed. The more employed, the more people with available money to spend. The more employed, the more people paying taxes. Our system of government and the general economy relies on jobs.

Why is it the average liberal doesn't get this? They are constantly pushing to destroy jobs and reduce personal wealth. The United States became the driver of the worlds economy by doing the exact opposite. If we want to fix the current problem and get America back to work then we need to focus on job creation.

Let me point to some statements made by Chris Edwards, CATO Institute economist and director of tax policy studies.
"The Obama administration has done nothing, nothing in my view to benefit the economy in the short, or the long run," said Edwards.

"Everything they're doing is anti-business, anti-enterprise, anti-venture capital, anti-investment. It's anti-small business and anti-big business. It's just astounding in my view."

Edwards says the big jobs killer weighing down the economy right now is uncertainty over what will happen next.

"Businesses large and small frankly they're just uncertain, they're fearful about what is coming in the future, and they're holding cash… they're not investing," he says.

Moreover, Edwards says, there is no assurance that when U.S. businesses do finally begin expanding again, that they will do so in the United States. In today's global economy, he said, they can flee to more business-friendly locations — something that pro-stimulus Keynesian economists often overlook, according to Edwards.

"I think our tax and regulatory policies are scaring U.S. and foreign multi-nationals away from investing in America," Edwards says.


I recently spoke to a businessman I respect who suggested, allowing for full depreciation of any capital expense up to the percentage that is made in the U.S. in the first year after implementation. This would be a boon to American business and a huge incentive to expansion instead of contraction of business. Programs such as these would draw business to America instead of current policies that suggest they move it elsewhere and take the jobs with them.

We need policies that keep business here at home. We also need some assurance that the goal posts aren't going to move after we make the investment. Right now the goal posts are constantly moving as the Obama administration constantly changes the business climate in America. Until things settle, we are in for a long and bumpy ride.

Quote above from here.

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Thursday, July 22, 2010

Bernanke Knows What We Need

With the Obama Administration passing mega bill after mega bill, everyone wonders what they will have left. The Bush Tax Cuts will expire and the Obama tax burdens are still being tabulated, will business have any money left to actually do business?

Bernanke Urges Congress to Renew Bush Tax Cuts

Federal Reserve Chairman Ben S. Bernanke dropped a major bombshell on Democrats seeking massive new revenues to narrow the deficit, announcing Thursday that he favors preserving the Bush administration tax cuts in order to help a faltering U.S. economy.

“In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke told the House Financial Services Committee. “There are many ways to do that. This is one way.”

Bernanke's statement put him directly at odds with White House officials and House Speaker Nancy Pelosi, who favors raising taxes on wealthy Americans by letting the tax cuts the Bush administration passed in 2001 and 2003 expire.

Bernanke's views also conflict with those of his predecessor, Alan Greenspan, who just last week told Bloomberg TV's Judy Woodruff that lawmakers should allow the Bush tax cuts to expire as scheduled at year's end.

Greenspan conceded however that doing so probably would slow growth.

Bernanke emphasized the importance of giving the economy a boost. But he also told the House that dealing with the deficit, which has ballooned during the Obama administration, remains a major consideration.

“We need to be taking steps to reassure the American people and the markets that our fiscal situation is going to be well controlled,” Bernanke told the committee members. “That means that if you extend the tax cuts, you need to find other ways to offset them.”

Bernanke's comments came on a day when the Dow Jones Industrial Average jumped 201 points, in part on reports of strong corporate profits.

But the markets were also encouraged by the news that two more Senate Democrats — Sen. Kent Conrad, D-N.D., and Sen. Ben Nelson, D-Neb. — are joining the growing number of voices urging an extension of the tax breaks enacted under the Bush administration, in order to stave off the possibility of a double dip recession.

Read More Here

My Favorite Quote From the Article:
Neil Cavuto said the market's reaction was telling. "Don't you find it a tad odd that among the many reasons the Dow soared more than 200 points today was this talk that some Democrats want to delay the tax hike for the rich. Telling, don't you think? Government stands down," he said, "stocks shoot up."


Doing what will work seems to still escape the great one.

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Thursday, July 08, 2010

The Solution to the Oil Spill

Our sit around and pass the blame administration should be jumping at the chance to rid themselves of this problem. Well here is the solution.



The only issue I see now is recognizing that is private industry and not government mandates that have provided the solution. How does a president of "government has the solution" accept the fact that it doesn't? Will he continue to sit back and push blame around or will he take a large swollow of pride and take the solution? The problem is only getting worse while we wait. And Wait.......



More animals are dying.
More businesses are dying

Still Waiting.........

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Tuesday, May 18, 2010

How Do You Rate

Does your state offer a good business environment?




Bringing or keeping business alive in your state can make all the difference. Not everyone can be in the top ten. You may also want to look at the biggest losers and winners of the year.

Oregon Lost fourteen spots. Nothing like new taxes to drive away business.
Washington gained ten spots. They really didn't do much.

How did your state due?

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Thursday, April 15, 2010

Calculating the Suffrage of Taxes

If you came looking for someone to argue with over the value of our government, today is not the day. I have been robbed and beaten by the ever hungry government. Once again I have given my all to support the needs of my family and to help those who I choose. Yes, I believe it should be a choice. Charity would feed and cloths far more of the needy then our government with its bloated baggage could.

Taxation is a tool used by government to take power from the people. Your money is your vote. Every time you buy something you are voting for that product or service. You are saying I want more of it and I am willing to pay for it. When the government taxes you they are limiting your ability to vote and promote that which you find of value. Often the government takes your money and does things with it that are in direct contrast to your values and interests. We have often seem our money sent to foreign leaders to be wasted as an example. We see government programs that serve to limit and reduce our every effort.

Have you ever sat back and considered how much different this nation would be if you controlled more of what you earned? The government by way of direct and indirect taxes, fees and sir charges removes about 42% of your power. Most American families are so drained by this burden that they need an additional income just to take care of the basic needs.

The awkward side is that so many people have been brought up on the milk of government programs they no longer no how to take care of themselves. This life on the dole serves to further strengthen the power of government over us.

The excerpt below is from pgs 19-20, Annual Report of the Secretary of the Treasury on the State of Finances for 1921:


"But the direct effect of these very high taxes is to hinder and prevent business transactions which would otherwise take place. A man may have property which he has held for years and which has greatly increased in value, and he would like to sell it, but if he does a large part of the gain would have to be paid out in taxes. He would rather keep the property than sell it, pay the tax, and invest what is left in something else. At the same time the party desiring to buy this property, if he obtained it, would improve it with buildings.

What is the result? The transaction does not take place, and the community loses the advantage which would come in the stimulation that would arise from the transactions resulting from the buyer's improvement of the property, and it also loses the advantage of the seller's putting his money into some other form of investment, which in turn would give rise to business transactions. The same thing on a much greater scale is true in manufacturing and mercantile lines. Men have built up enterprises to the point where they are highly successful. They would like to take their profit and turn the business over to younger men to carry on.

These transactions are highly desirable not only for the parties but for the community, yet they are absolutely stopped, because if made the seller would have to pay in one year a tax on a gain which has been the result of perhaps the better part of a lifetime of effort. And in all such cases the Government gets no tax, whereas if the rates were reasonable the transactions would take place and the Government's revenues would benefit accordingly.

The free interchange of property in business transactions is essential to the normal prosperity of the country, and each such transaction has a direct tendency to bring about others of like character with the result of increasing the amount of gain or income available for taxation; but when the tax is so high as to act as a deterrent against usual and desirable business transactions, and the volume of such transactions is thereby lessened, the inevitable result is for the tax to become less and less productive.

It is for these reasons that, particularly in the higher brackets, a lower tax rate will produce more revenue in the long run than excessive rates. So long as the high rate stands in the way of accomplishing bargains and sales, the Government receives no tax; but at a lower rate the transactions proceed and the Government shares in the profits."


It has been obvious for years and yet we are still sitting here taking it. Now we have even greedier government with an even more ravenous appetite for your money. Now is the time to seek out candidates at every level who want to restore our constitution and reduce our obese government. Don't wait till the polls open come November. Get out there and make it happen. Don't forget to vote with a few of the dollars you have left before they come for those as well. Find a good candidate with the right perspective and help them win the election.

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Saturday, March 06, 2010

Big Tent Thinking

Seems everyone is talking about inclusiveness. Nobody wants to be left out. I was once in a church that decided to clean up their member directory. They removed all the people who were not attending at least once a month. Suddenly people came out of the woodwork mad that they were not included. They acted like the church had done some horrible act by excluding their names from the directory.

We see the big tent approach being heavily pushed in the political area. Rather then take a strong stand on an issue, which may serve to shrink the tent. We see wishy washy, limp positions on nearly all issues. With both parties doing their best and worst to draw in the crowds they instead are starting to scare them off. Suddenly, nobody wants to belong to a less then exclusive club. People are suddenly aware of the fact that pleasing everyone pleases no one and the result is a large crowd who stand for nothing.

The Big Tent idea has started to permeate into business life as well. During a recession, this looks like a good idea but will often end in disaster. Most businesses are scrambling for sales in order to stay in business. They are so focused on making the next sale that they often push out to the edges of their ability just to get that next contract. Soon they find themselves doing jobs barely in the possible range and often taking losses due to this lack of expertise.

Knowing your niche market and focusing on what you do best is the way to stay in business. Doing what you do best means doing it with maximum outcome for both you and your client. Doing what you do best means getting referrals and staying in business.

Doing what you do best also means doing it more competitively. You are confident in your costs and turn times and are therefore confident on negotiating the price. Making money or breaking even is almost guaranteed. Once again staying in business means covering the costs and satisfying the customers.

The Big Tent approach means doing everything for everyone in order to never turn a customer away. This approach will often give less then ideal results and start turning customers off rather then making them more loyal. Small amounts of dissatisfaction will lesson referrals and reduce confidence in the customer getting a job well done. Instead of endearing the customer to you, you are slowly driving them off. A significant failure may result in a loss of more then just this customer. The word gets out.

Stay in business by doing the business that you do best.

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Friday, February 12, 2010

Understanding Unemployment

The way unemployment is calculated leave much to be desired. There is too many in the population who are overlooked when this number is calculated. The number we hear all the time is only looking at those who are seeking jobs verses those who actually have one. This sounds like a good representation but let's look at the flaws.

Some people simply give up or retire. Retiring is a reasonable change in job status when your age or financial fortitude will allow it. Giving up on the other hand, shows what a sad state our economy is really in. These groups are ignored in the employment numbers and thereby skew the results.

The other group not talked about anywhere is the under employed. These are the people who's benefits have run out and return to the work force under a significantly less status and pay then previous or simply resort to part-time just to get by. This group also skews the numbers as they are counted as employed when the capacity of employment is not rated. When compared to there previous employment they may be half employed or sum other percentage employed.




Perhaps the video helped.

While everyone is all excited about the current employment numbers, it really is a shell game. They don't count all those who should count. We are seeing people falling from the employment rolls with no real increase in net jobs. This should be horrifying.

The key issue is how many people are now living off the few who are working.

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Wednesday, January 06, 2010

Rush To The End

Have you ever noticed that everything comes due at either the end of the month or the first of the month. It is slow going the bulk of the month but when that last week comes the insanity commences. Everyone in any type of production industry, knows the pain I'm talking about all to well.

Most people accept it as the standard practice for their industry. They blame it on the customers and resign themselves to it as if it is set in stone. The truth is there is nothing to motivate the customers to do anything different. Why change?

There are some simple ways that you can reduce some of this chaos and still retain your business and your customers. Before I give away the secret, let's look at how what you are doing is hurting your business and costing you money and maybe even a few customers.

Have you noticed how much of your overtime comes at the end of the month. Everyone is working more hours to do the work they had plenty of time to do in the middle of the month. This increased activity usually breeds exhaustion and mistakes that cost additional time and money. The overtime is generally welcome every now and then but this is usually a six to ten day panic that puts everyone on edge. This increased stress is not only effecting you and your employees but I am willing to bet it is effecting current customers and potential customers. You answer the phone in a frantic rush, or short change conversation that is an investment in your customers and your future business. Some may "know" not to call at this time of the month. That is a big missed oportunity that may invite your competition in and drive your customers away.

Often we fail to notice are schedule is so packed we can't squeeze another thing in. Have you had to turn down work during this busy period? Have you ever thought, I wish they would have called last week?

What about those mistakes that occur during the chaotic rush? In todays economic times we need to make every dollar count. Mistakes are wasted time and materials that rob the bottom line of your business.

We have seen how the month end rush has cost us time, materials, future business and even chased away some current customers, but how do we take control and get this back? If you had all the savings this could generate you could probably make more money and reduce your costs while increasing your sales.

The answer is found in your customer service and sales team. Most businesses pay sales commissions shortly after the close of the month. Your sales staff is only motivated to press for the sale at the end of the month. They are pushing to boost their commission check and customers who are riding the fence are often pushed into the purchase side of the equation. Armed with this information, a business owner should move the commission closing day to the fifteenth. Using the motivational drive of the sales team to invigorate the middle of the month and reduce the end of the month.

Your customer service team can get into the act by pressing for action more in the middle of the month then at the end. Use phrasing like "Beat the Rush" and "Stay ahead of schedule". Focus your customer on smooth quality projects without the stress and deadline rush. Human nature seems to embrace procrastination. Work on turning this around plant wide. If you create a company culture of "get it done right and get it done ahead of schedule" your business will reap the rewards.

I have seen businesses offer discounts for doing work during slow periods. I would generally refrain from this as long as possible, margins are to tight to toss out a number. If the upper programs start to work and you start cutting some of the above mentioned costs, it wouldn't be a bad idea to share a small portion of the savings in a form of discounts. Start with your regular customers who have helped you build your business. Once they have been encouraged to use the middle of the month it will open up more opportunity to serve new customers who will eventually come around to your way of thinking. This business building system will make your company better and stronger. You will enjoy more success with happier employees.

Get It Done Right, and Get It Done Ahead of Schedule. Why Wait?

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Wednesday, December 30, 2009

Loud and Clear



I have lost count on the number of times I have written on healthcare. I am sure this won't be the last. In each of my writings I have tried to bring forth the actual wishes of the American People. The key issue that has kept Americans pushing on our leaders has been the cost. The cost of healthcare keeps rising higher and higher. If we are to afford healthcare, then something has to be done to stop this rise.

Our congressional leaders in all their wisdom have completely avoided all possible solutions that would cut costs and instead chose to further increase the cost burden. To make it even more felonious, they have chosen to take money in advance of any future services further increasing the burden on us all. We not only have to pay for todays health needs but now through additional taxes and fees, cuts in benefits and medical rationing, we will be paying for future benefits that will be even less then our current system.

They have attempted to hide the fact that we will pay this burden. Businesses pass on taxes and fees in increased cost of goods sold and cut backs in payroll and employment. Each of us is struggling to make ends meet now. How will you afford the cost increases you will have on daily need items? The market is far to fluid for only one group to bare this burden. It will ultimately be shared by all. The question is, how much is our share?

Enough is enough, tell them to dump this travesty and start over. Could we try incorporating some of the cost savings measures we have asked for and stop the power grab.

Write them again. If you don't have it memorized, use the tool on my side bar.

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Tuesday, December 15, 2009

Validation

I have written many articles about the minimum wage. Every time I do the sad and angry show up to call me names. Well here it is. Some economic got together and wrote a book with what is considered a record level of research into the subject.

How Minimum Wage Affects the Job Hunt
December 14, 2009 - 2:42 PM | by: James Rosen

It's been an article of faith for so long that the minimum wage offers a "hand up" to the people on the lowest rung of the economic ladder, but some recent studies show otherwise.

The most exhaustive of these is a landmark book published last year called "Minimum Wages." It's by two economists, David Neumark of the University of California and William Wascher of the Federal Reserve.

They examined sixty years of data and concluded the minimum wage actually cuts down on job opportunities and even wages, over time, for low-skilled workers.

Neumark broke down his theory for Fox News in simple, layman's terms, starting with the premise of what would happen if the minimum wage were raised again, say, tomorrow.

"Now, many people, of course, will not lose their job. Many people who were employed at the old minimum wage will, you know, have a raise in their wage, and they will still be employed at the new minimum wage,” Neumark told Fox News.

“A small number -- and it depends how big the minimum wage increase is -- will lose their job.

“Some people entering the labor market for the first time, or, you know, anew, will not be able to find a job because of the higher minimum wage."

The last bump for the minimum wage was this past July, a seventy cent increase to $7.25 an hour.

In September, three months later, the teen unemployment rate hit 25.9 percent, a full two points higher than in July, and the highest since World War II.

Charles Lane, a member of the Washington Post editorial board, recently called for the minimum wage to be rolled back as a way of creating jobs. That would require an act of Congress, and it's not likely anytime soon. Democrats control both houses of Congress and the issue has become, particularly for Democrats, freighted with emotion.

Read the rest

Perhaps some make up reading would help.
The Minimum Wage Isn't the Problem
How Do I Understand Price Structure In Business
The Minimum Wage Comes Up Again

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Sunday, December 13, 2009

Let's Talk Taxes

We are almost to the end of the year and although we are preparing for the merriment of Christmas some are looking at their tax situation. Making adjustments to your 401k and donations to adjust your year end tax exposure are on the minds of many. You will notice the heavy holiday push for donations. Many charities make the bulk of their income during the last month of the year.

I have been thinking about government spending and our obligation to the debt our government places us under. Most of us are aware of Tax Freedom Day, that is generally celebrated around the middle of April. This year Tax Freedom Day was generally recognized on April 13th even though each state has its own tax variations. This was eight days sooner then 2008 with April 22 being the recognized day. This is a little misleading because it doesn't include many taxes and fees that we pay. This event is directly attributed to income taxes while failing to recognize various user taxes like phone, cable, electricity. It even fails to account for property taxes and licencing fees. We also don't see any allowance for the vast debt our government has racked up and expect us to pay.
If we were to change the name to No Longer Paying Government Obligations day, what day would we actually start working for ourselves?



We can now see taxation holding our wages until June.

In doing my research and reading I ran across a section that gave me great pause.

Nevertheless, in 2009, Americans will pay more in taxes than they will spend on food, clothing and housing combined.

Go back and read that again. Americans will pay more in taxes than they will spend on food, clothing and housing combined.

People are often asking why we have to have two incomes to survive. I hear people wishing to spend more time with their family but we are seeing government mismanagement of our money forcing these things upon us. It is time for there to be a change in philosophy in every government office across the land. We need leaders who are willing to review and judge each program as worthy or worthless. We need a serious look at downsizing government.

Let's look at tax history. Here is the tax obligation broken down in ten year cycles. I will include all years since 2000.
1900 5.9%
1910 5.0%
1920 12.0%
1930 11.7%
1940 17.9%
1950 24.6%
1960 27.7%
1970 29.6%
1980 30.4%
1990 30.4%
2000 33.6%
2001 32.6%
2002 29.8%
2003 29.0%
2004 29.3%
2005 31.1%
2006 31.7%
2007 31.8%
2008 30.4%
2009 28.2%

We no longer have a government that reflects our founders mistrust of the government and the original intent of keeping government small with the power base held by the people. We have a continuously growing government that seems to have a ravenous appetite for taxation. The first 150 years we had a government who taxed at less then 5% allowing for the growth and incredible innovation that made America great. We now have a stifling government with business taxes that average 42% and personal taxes that hover near 30%.
Even with these facts easily obtainable people are still acting as if businesses pay nothing.

If we want to return to prosperity and bring back jobs to America perhaps changing our obese government is the starting place. It's time to put congress on a diet.

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