Posted byMessage
Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14377 posts
 Online 

re: Here's some economics 101 for you Dems to chew on


quote:

Sooooo....some of it is transformed into investment capital which means a business somewhere can invest in new technology that makes them more competitive and able to sale their products to a larger global market and hire Americans in the process. That seems like a bad notion...

Except for the fact that businesses and individuals are sitting on record amounts of cash right now. They are not investing in new technology or additional labor. They do not see increased demand for their products or services that justifies the costs, or risks, of investing their capital.

Have you bothered to listen to what business owners and managers have been saying for the last few years? They have been complaining about the increased costs of regulatory compliance being open ended such that it prevents their businesses from being able to determine a likely return on their investment if they make significant capital investments. It is not likely the regulatory environment is going to reverse itself in the next few years either. We can only hope that there will be enough predictability to allow businesses to make more accurate assessments of their circumstances that give them confidence enough to invest additional capital for growth.

There is also a concept of how efficiently money circulates through the economy. The majority of business failures are due to inadequate cash flows. Taking money away from consumers and passing it through the government in the form of taxes is hardly the way to improve the cashflows of businesses. In fact it puts more stress on businesses by reducing their primary source of cah flow, consumer spending. The same happens to money accumulated as investment capital. Struggling businesses lose access to that pool of maney as they have limited ability to attract investment capital due to their precarious position. The net effect is that increasing taxes can cause increased business failures.






Back to top
Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
5869 posts

re: Here's some economics 101 for you Dems to chew on


quote:

I make less than 14,000 per year. They said that taxes won't go up, I assume Payroll taxes. And they haven't, but SS taxes went from 4.2% to 7.9%. I take it to mean that its back to where it was before Bushes tax cut. Still a good trade off. No lying or just not telling all the story like libs usually do?


You're just a fountain of misinformation.

First, the temporary reduction of social security taxes in 2011 and 2012 had nothing to do with Bush.

Second, the rate went from 4.2% to 6.2%, not 7.9%. The Medicare rate of 1.45% was unchanged.






Back to top
idlewatcher
LSU Fan
Houston
Member since Jan 2012
6630 posts
 Online 

re: Here's some economics 101 for you Dems to chew on


quote:

By the way, I'm giving up my LSU season tickets.


Why not just sell the actual tickets as a season package and keep them in your name? Seems wasteful brah.






Back to top
SoulGlo
LSU Fan
Shinin' Through
Member since Dec 2011
3203 posts

re: Here's some economics 101 for you Dems to chew on


quote:

the pest control guy will go out of business


This. I'm in pest control, but we've built our company to be much stronger than Obama... unless the EPA continues to lose its mind and not let us properly do our job safely. We will just expand more slowly than we otherwise would have because of the increased costs of Obamacare and the new taxes. We will be postponing new branch openings, and subsequent job openings.

There are a LOT of companies, however, that aren't built like ours. I know of at least three smaller companies that will be closing shop this year. Good for me, but not for the people that work there. Those are just the companies that I have direct knowledge of. There are many more.

We just acquired a company in the last couple months that was folding due to the Obamacare costs. They weren't as efficient as they could be, but Obamacare and "increasing government/regulation costs" pushed the owners into retirement. It was no longer worth their time. We saved about half the jobs, but the rest were let go.

Those people will now be collecting unemployment, instead of paying taxes. In my opinion, it's safe to say that any increase in projected increase in revenue from the tax hikes will be largely wiped out by the expense of taking care of those who lose their jobs in the coming year.

I simply can't understand how someone who lives and works in the real world can't see the actual effects of government costs.






Back to top
Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14377 posts
 Online 

re: Here's some economics 101 for you Dems to chew on


quote:

I'm in pest control, but we've built our company to be much stronger than Obama... unless the EPA continues to lose its mind and not let us properly do our job safely. We will just expand more slowly than we otherwise would have because of the increased costs of Obamacare and the new taxes. We will be postponing new branch openings, and subsequent job openings.
I haven't met any owners of pest control businesses who are hurting for customers recently. In fact several of them have complained that they could easily take on more customers, but they think their profit margins are going to shrink, and they will not benefit from the increased employee head count sufficiently to justify the investment in new employees.






Back to top
Bayou Sam
LSU Fan
Snake and Jake's Christmas Club
Member since Aug 2009
4791 posts

re: Here's some economics 101 for you Dems to chew on


The payroll tax cut you enjoyed was one prong of Obama's stimulus, which you all said was so terrible.





Back to top
SoulGlo
LSU Fan
Shinin' Through
Member since Dec 2011
3203 posts

re: Here's some economics 101 for you Dems to chew on


quote:

In fact several of them have complained that they could easily take on more customers, but they think their profit margins are going to shrink, and they will not benefit from the increased employee head count sufficiently to justify the investment in new employees.


Good for them. I know of these too, especially smaller companies. Either way, the government is choking the engine that creates jobs. Some aren't hiring because the extra cost of manpower isn't worth the revenue. Some are folding shop because their cost/benefit ratio has crossed the line.

Either case is completely unnecessary and destructive.






Back to top
SoulGlo
LSU Fan
Shinin' Through
Member since Dec 2011
3203 posts

re: Here's some economics 101 for you Dems to chew on


quote:

The payroll tax cut you enjoyed was one prong of Obama's stimulus, which you all said was so terrible.



If one prong of a fork will help you eat, and the other 3 prongs poison the food, is it still a good fork?






Back to top
Drew Orleans
LSU Fan
Member since Mar 2010
18376 posts

re: Here's some economics 101 for you Dems to chew on


Did you already give them up? Any chance you would put them in my name?





Back to top
taylormade
Alabama Fan
Tumbleton
Member since Jan 2011
7731 posts

re: Here's some economics 101 for you Dems to chew on


Last yr. I cut off the cable & kept the internet..
stream everything.. Get local channels with Antenna..

I like it kinda.. keeps it simple..
and if you want to watch something,
you can find in online..

ESPN3 is what I watch all games on..






Back to top
germandawg
Member since Sep 2012
2718 posts

re: Here's some economics 101 for you Dems to chew on


quote:

Except for the fact that businesses and individuals are sitting on record amounts of cash right now. They are not investing in new technology or additional labor. They do not see increased demand for their products or services that justifies the costs, or risks, of investing their capital.

Have you bothered to listen to what business owners and managers have been saying for the last few years? They have been complaining about the increased costs of regulatory compliance being open ended such that it prevents their businesses from being able to determine a likely return on their investment if they make significant capital investments. It is not likely the regulatory environment is going to reverse itself in the next few years either. We can only hope that there will be enough predictability to allow businesses to make more accurate assessments of their circumstances that give them confidence enough to invest additional capital for growth.

There is also a concept of how efficiently money circulates through the economy. The majority of business failures are due to inadequate cash flows. Taking money away from consumers and passing it through the government in the form of taxes is hardly the way to improve the cashflows of businesses. In fact it puts more stress on businesses by reducing their primary source of cah flow, consumer spending. The same happens to money accumulated as investment capital. Struggling businesses lose access to that pool of maney as they have limited ability to attract investment capital due to their precarious position. The net effect is that increasing taxes can cause increased business failures.




You make some very valid points. The economy is suffering due to the lack of consumer confidence and liquidity. Those companies sitting on record amounts of cash won't be sitting on those mountains of cash if they have to decide if that mountain is to be taxed or invested. Increasing their taxes will in one way or another put that money back into play.

Has there ever been a time in history when merchants weren't bitching about regulations? If consumers had enough cash to buy their products they wouldn't be a bit concerned about regulations. They would invest and pay higher taxes and comply and make soaring profits and grow like weeds. It is the lack of cash in the pockets of consumers that heightens everything.

Soooo,,,what to do about consumer spending? REDISTRIBUTE!!!! Either by encouraging collective bargaining or by adjusting tax codes to punish those who move jobs overseas and award those who move them back or simply taking from the wealth and giving to the middle class....either way you give mom and pop six pack the cash to do so and they will buy those consumer goods and products. The concentration of wealth has lead to the demise of all empires and ours will be no different unless we take steps to mitigate the affect. Progressive taxes are a good way to do just that.






Back to top
SoulGlo
LSU Fan
Shinin' Through
Member since Dec 2011
3203 posts

re: Here's some economics 101 for you Dems to chew on


quote:

Except for the fact that businesses and individuals are sitting on record amounts of cash right now. They are not investing in new technology or additional labor. They do not see increased demand for their products or services that justifies the costs, or risks, of investing their capital.

Have you bothered to listen to what business owners and managers have been saying for the last few years? They have been complaining about the increased costs of regulatory compliance being open ended such that it prevents their businesses from being able to determine a likely return on their investment if they make significant capital investments. It is not likely the regulatory environment is going to reverse itself in the next few years either. We can only hope that there will be enough predictability to allow businesses to make more accurate assessments of their circumstances that give them confidence enough to invest additional capital for growth.

There is also a concept of how efficiently money circulates through the economy. The majority of business failures are due to inadequate cash flows. Taking money away from consumers and passing it through the government in the form of taxes is hardly the way to improve the cashflows of businesses. In fact it puts more stress on businesses by reducing their primary source of cah flow, consumer spending. The same happens to money accumulated as investment capital. Struggling businesses lose access to that pool of maney as they have limited ability to attract investment capital due to their precarious position. The net effect is that increasing taxes can cause increased business failures.



So you're saying we should confiscate money already earned by a business to give it to someone else. What a novel idea, comrade!






Back to top
BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
17980 posts

re: Here's some economics 101 for you Dems to chew on


quote:

First of all, the 2% payroll tax reduction was only temporary.


So i should be grateful that the government decided to let me keep more of my money that i earned?

quote:

Second, if health care costs were not out of control, premiums would not increase.


Put on the brakes. We are in the age of Obamacare now. Healthcare costs are not supposed to go up. Are you saying your slave master lied???






Back to top
roygu
Member since Jan 2004
7892 posts

re: Here's some economics 101 for you Dems to chew on


Ponzi Scheme?

Why isn't the economy improving?






Back to top



Back to top