Robin Hood Obama, Stop Taking From the Rich to Give to the Poor
Posted on | July 23, 2009 | 4 Comments
President Obama, Robin Hood was a great English Folklore but it does not work in a Capitalist society! By taking from the rich to give from the poor, you are going to cause greater problems than you are fixing. Let me give you a completely fictional example:
John Allen Bakery is a small, privately owned venture in Columbia, South Carolina. John Allen Bakery employs 14 hard working Americans. John Allen himself took a huge risk when he was 26 years old. He quit Columbia Bakery to pursue his dream of owning his own business. He gave up all his benefits and retirement options because of this dream. In all reality, he could have been forced to file bankruptcy after two years but he did everything in his power to keep the business running.
He worked from 6:00 am to 9:00 pm every single day for two straight years. Every single month he saw sales that did not even come close to exceeding costs. Then, after about 26 months of owning the business he started to see steady business returning because he had the best bread in town. After 4 years, he finally saw his first profit which was only a meager $23.04. That was the best month of his life though as he had created a profitable business by himself!
As we fast forward to today, 14 years later, John Allen Bakery now makes $750,000 in annual sales and is the most well known bakery in the entire state of South Carolina. Oprah Winfrey has actually mentioned it on here show which greatly increased sales. Since the recession began sales have definitely dropped, to the tune of 40% so far this year, but John Allen continues to work hard to make the business successful. He is actually in the bakery at least 50 hours a week even though he doesn’t have to be.
When Obama was elected president, John Allen realized he was going to see a steeper tax because he was definitely in the upper tax bracket. Sitting at home he realized that he was not going to be able to produce nearly as much money with the downturn in the economy and the higher taxes. After talking it over with some of his upper level staff, John Allen decided to increase prices on his bread. He did not go out of control, but he increased the price of every single product by approximately 15%.
While watching the news recently, Mr. Allen sees that the new health care bill is going to force him to pay a tax of 8% on his payroll because he does not offer health insurance. He cares deeply about each of his employees, but the higher income tax and the current recession is forcing him to change the way he runs his business. He analyzes his staff and productivity and realizes that if he cuts two staff members, he can offset that 8% tax.
Robin Hood Obama, this story is all too familiar. Small businesses are increasing prices and cutting staff because of YOU! Didn’t you want to increase jobs? Well, your higher tax policy for the wealthy and health care bill are two ways to increase unemployment! Not only is this the case, but those who are paying less in taxes, the UNweathly, are handing it right back to the wealthy in higher cost of goods! I guess this is a basic economics model you did not understand in high school and college. I would think someone in your administration would realize this though.
Please return to Subprime Blogger each weekday to get my daily Subprime Blogger rants. Yesterdays rant about the Health Care Bill is available here: Health Care Bill Will Further Ruin Our Economy.
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4 Responses to “Robin Hood Obama, Stop Taking From the Rich to Give to the Poor”
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July 23rd, 2009 @ 4:27 pm
Do you think small businesses are going to CUT PAYROLL to offset the 8% tax on payroll from the Health Care Bill?
July 23rd, 2009 @ 9:16 pm
[...] Please read the entire article here: Robin Hood Obama, Stop Taking from the Rich to Give to the Poor [...]
July 24th, 2009 @ 2:24 am
[...] Please read the entire article here: Robin Hood Obama, Stop Taking from the Rich to Give to the Poor [...]
July 24th, 2009 @ 2:24 am
[...] Please read the entire article here: Robin Hood Obama, Stop Taking from the Rich to Give to the Poor [...]