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If you don’t learn from history….

September 14, 2010

you are doomed to keep making the same mistakes….

A couple of quick notes on the economy as posted on tartanmarine.blogspot.com:

1) I own a small business (current employment: 4) that I could expand in the next year. However, I am facing higher costs at every level from the current administration, health care, taxes, regulation, and administrative costs. Why should I take the risk of hiring and training new people when these same costs may drive some of my customers out of business or to lower cost alternatives, thus taking away sales.  Even if I don’t lose sales, I lose profit margin.  Thus, why should I take the risk?

2) Where in the new proposal by the president are real tax breaks for small business? Most of us don’t have an R & D department, aren’t considering big purchases, can’t get a loan from the SBA because our assets have lost value, and don’t have time for the paperwork for some of the other “credits”. We’re too busy trying to survive.

3) Why doesn’t anyone seem to get the concept of the “rich” moving their assets, spending habits, and incomes to avoid tax exposure? John Kerry, the richest US Senator, keeps his boat in Rhode Island to avoid paying taxes (those taxes are less than 0.06% of his net worth) in his home state of Massachusetts. The “rich” will hunker down, move assets, delay spending/change spending habits, move income, and otherwise avoid taxes because it will now be cost effective to do so. This does not improve the economy or tax revenues. The fact that increasing tax rates only drives tax revenue down has been proven repeatedly in world history, not just in the US. Yet, we keep making the same mistake.

We need to wake up! The solution is cut SPENDING and TAXES!

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