A person wrote in the comments section on this site that the Obama taxes will not effect his or her million dollar bosses company and this prompted me to think about what is really happening.
When a company grosses around a million dollars and the owner only nets $40,000.00 the company cannot stay in business as no bank or supplier will even talk to them.
A corporation on the other hand is an artificial person who also pays taxes; an owner can take out $40,000.00 as payroll for himself and keep his personal tax debt under control while living off of the corporation's earnings and listing them as expenses of different sorts.
The problem is that if the corporation is written down too low then once again it loses all borrowing power and creditability with suppliers and would not have the credit to stay in business.
This is why I wrote that the statements must be concerning a corporation; now whether it is an S corporation or not I do not know although most corporations of that size are S corporations but there are exceptions, the main difference is that an S corporation normally must use the owners credit to borrow. When this happens then the personal earnings of the owner must be high enough to qualify for loans and so forth.
Although this has nothing to do with Senator Obama's tax plan forcing the cost of goods to increase in price to the middle class and poor. When you charge the man making $40,000.00 per year extra expenses, like higher taxes, he will maintain his $40,000.00 by passing along the tax increase to his customers and that is you and me.
The two candidates running right now are the weakest that was running in the primaries; apparently democrats crossed over and voted against Mitt Romney thereby caused McCain to win and the republicans crossed over and voted against Senator Clinton and thereby caused Senator Obama to win.
This election should have been between Clinton and Romney the two strongest candidates and not the two weakest candidates.
Of the two McCain is by far the strongest especially when the financial market in the world is in such a mess.
Tax increases and tariffs is what sent this country into the great depression when the market slowed and it will do the same thing again if Senator Obama is elected and actually implements his tax plans along with his spending plans; people Marxism does not work!
The strongest system to prosper has been and is always will be capitalism, people work harder when they can keep most of what they earn; start stealing from the rich and giving to the poor and eventually we will have all poor except for criminals and government officials who walk the party line.
This is exactly why the USSR collapsed; everybody was sharing whether they worked or not and so they all stopped working and the government had no income to spread around any longer.
Now Senator Obama keeps telling everybody that all of these problems was caused by deregulation of oversight controls and that is just not true there has never been any votes or movement to deregulate oversight; President Clinton allowed lending institutions to lend sub par loans and allowed Fanny Mae and Freddy Mack to absorb these loans and bundle them as viable financial packages thereby placing value on loans that had no value. Much like a pyramid, where one buys on a 10% margin 100 shares of stock quoted at 100, holds it till it rises to 105, and then uses the paper profit to buy 50 shares more.
The problem is that sometime or another this paper must be replaced with cash and the last guy in line is left holding the bag; in this case the banks and lending institutions.
The democrats had control of the finances and for the last two years Senator Barney Frank has been stonewalling everybody's efforts to place some restrictions on this practice along with Democratic Senator Chris Dodd, Democratic Senator Barack Obama and other democrats who are now all pointing at the republicans.
Indiana has good Senators by the most part with the exception of Democratic Senator Bayh who is a follower of the elite.
Bush had little to do with the current situation that the country is in but most people feel that they must blame somebody and he is the likely candidate.
To me it seems that everybody is spending too much time looking under the wrong rocks such as yelling that Governor Palin has no experience when she actually has more experience than Senator Obama; besides she is the bottom of the ticket and Senator Obama is the top of the ticket; although she will probably be the new president 4 years from now.
Most democrat politicians are constantly preaching about the failed Bush policies yet nobody ever points out a failed policy. Has there been mistakes-- of course-- but Iraq is being turned over to their own government, Afghanistan is under control and more troops are moving into the region and will defeat what's left of the terrorist. The US has not been attacked since 9/11 overall jobs are up until the democrats were elected into congress at the last election cycle and they forced the economy down in an effort to win the White House 2 years later.
John R. Stanczak