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Small Business Owner speaks to his Employees

Discussion in 'Politics, Elections & Legislation' started by JACK, Nov 19, 2009.

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  1. JACK

    JACK Well-Known Member Supporting Vendor

    Joined:
    Apr 28, 2006
    Messages:
    14,741
    Location:
    NW Wisconsin
    Subject: A Small Business Owner Tells It Like It Is



    This may be one of the best emails I have ever received or sent with
    regard to understanding our current situation in America .

    Please feel free to pass this on to those who still don't get what's
    happening here......WAKE UP PEOPLE!!!!!!



    Employee meeting:


    I would like to start by thanking you for attending this meeting,
    though it's not like you had much of a choice. After all, attendance
    was mandatory. I'm also glad many of you accepted my invitation to
    your family members to be here as well. I have a few remarks to make
    to all of you, and then we'll retire to the ballroom for a great lunch
    and some employee awards.
    I felt that this meeting was important enough to close all 12 of our
    tire and automotive shops today so that you could be here. To reassure
    you, everybody is being paid for the day --- except me. Since our
    stores are closed we're making no money. That economic loss is mine to
    sustain. Carrington Automotive has 157 full time employees and around
    30 additional part-timers. All of you are here. I thank you for that.


    When you walked into this auditorium you were handed a rather thick
    78-page document. Many of you have already taken a peek. You were
    probably surprised to see that it's my personal tax return for 2008.
    Those of you who are adept at reading these tax returns will see that
    last year my taxable income was $534,000.00. Now I'm sure this seems
    rather high to many of you. So ... let's talk about this tax return.


    Carrington Automotive Enterprises is what we call a Sub-S - a
    Subchapter S corporation. The name comes from a particular part of our
    tax code. Sub-S status means that the income from all 12 of our stores
    is reported on my personal tax return. Businesses that report their
    income on the owner's personal tax return are referred to as "small
    businesses." So, you see now that this $534,000 is really the total
    taxable income - the total combined profit from all 12 of our stores.
    That works out to an average of a bit over $44,000 per store.


    Why did I feel it important for you to see my actual 2008 tax return?
    Well, there's a lot of rhetoric being thrown around today about taxes,
    small businesses and rich people. To the people in charge in
    Washington right now I'm a wealthy American making over a half-million
    dollars a year. Most Americans would agree: I'm just another rich guy;
    after all ... I had over a half-million in income last year, right? In
    this room we know that the reality is that I'm a small business owner
    who runs 12 retail establishments and employs 187 people. Now here's
    something that shouldn't surprise you, but it will: Just under 100
    percent ... make that 99.! 7 percent of all employers in this country
    are small businesses, just like ours.


    Every one of these businesses reports their income on a personal
    income tax return. You need to understand that small businesses like
    ours are responsible for about 80 percent of all private sector jobs
    in this country, and about 70 percent of all jobs that have been
    created over the past year. You also need to know that when you hear
    some politician talking about rich people who earn over $200,000 or
    $500,000 a year, they're talking about the people who create the jobs.


    The people who are now running the show in Washington have been
    talking for months about raising taxes on wealthy Americans. I already
    know that in two years my federal income taxes are going to go up by
    about 4.5 percent. That happens when Obama and the Democrats allow the
    Bush tax cuts to expire. When my taxes climb by 4.5 percent the
    Democrats will be on television saying that this really isn't a tax
    increase. They'll explain that the Bush tax cuts have expired ..
    nothing more. Here at Carrington we'll know that almost 5% has been
    taken right off of our bottom line. And that means it will be coming
    off your bottom line.


    Numbers are boring, I know ... but let's talk a bit more about that
    $534,000. That's the money that was left last year from company
    revenues after I paid all of the salaries and expenses of running this
    business. Now I could have kept every penny of that for myself, but
    that would have left us with nothing to grow our business, to attract
    new customers and to hire new employees. You're aware that we've been
    talking about opening new stores in Virginia Beach and Newport News .
    To do that I will have to buy or lease property, construct a building
    and purchase inventory. I also have to hire additional people to work
    in those stores. These people wouldn't immediately be earning their
    pay. So, where do you think the money for all of this comes from?
    Right out of our profits .. right out of that $534,000. I need to
    advertise to bring customers in, especially in these tough times.
    Where do you think that money comes from? Oh sure, I can count it as
    an expense when I file my next income tax return ... but for right now
    that comes from either current revenues or last year's profits.
    Revenues right now aren't all that hot ... so do the math. A good
    effective advertising campaign might cost us more than $300,000.


    Is this all starting to come together for you now?


    Right now the Democrats are pushing a nationalized health care plan
    that, depending on who's doing the talking, will add anywhere from
    another two percent to an additional 4.6 percent to my taxes. If I add
    a few more stores, which I would like to do, and if the economy
    improves, my taxable income ... our business income ... could go over
    one million dollars! If that happens the Democrats have yet another
    tax waiting, another five percent plus! I've really lost track of all
    of the new government programs the Democrats and President Obama are
    proposing that they claim they will be able to finance with new taxes
    on what they call "wealthy Americans."


    And while we're talking about health care, let me explain something
    else to you. I understand that possibly your biggest complaint with
    our company is that we don't provide you with health insurance. That
    is because as your employer I believe that it is my responsibility to
    provide you with a safe workplace and a fair wage and to do all that I
    can to preserve and grow this company that provides us all with
    income. I no more have a responsibility to provide you with health
    insurance than I do with life, auto or homeowner's insurance. As you
    know, I have periodically invited agents for health insurance
    companies here to provide you with information on private health
    insurance plans. T


    The Democrats are proposing to levy yet another tax against Carrington
    in the amount of 8 percent of my payroll as a penalty for not
    providing you with health insurance. You should know that if they do
    this I will be reducing every person's salary or hourly wage by that
    same 8 percent. This will not be done to put any more money in my
    pocket. It will be done to make sure that I don't suffer financially
    from the Democrat's efforts to place our healthcare under the control
    of the federal government. It is your health, not mine. It is your
    healthcare, not mine. These are your expenses, not mine. If you think
    I'm wrong about all this, I would sure love to hear your reasoning.


    Try to understand what I'm telling you here. Those people that Obama
    and the Democrats call "wealthy Americans" are, in very large part,
    America 's small business owners. I'm one of them. You have the
    evidence, and surely you don't think that the owner of a bunch of tire
    stores is anything special. That $534,000 figure on my income tax
    return puts me squarely in Democrat crosshairs when it comes to tax
    increases.


    Let's be clear about this ... crystal clear. Any federal tax increase
    on me is going to cost you money, not me. Any new taxes on Carrington
    Automotive will be new taxes that you, or the people I don't hire to
    staff the new stores I won't be building, will be paying. Do you
    understand what I'm telling you? You've heard about things rolling
    downhill, right? Fine .. then you need to know that taxes, like that
    other stuff, roll downhill. Now you and I may understand that you are
    not among those that the Democrats call "wealthy Americans," but when
    this "tax the rich" thing comes down you are going to be standing at
    the bottom of the mud slide, if you get my drift. That's life in the
    big city, my friends ... where elections have consequences.


    You know our economy is very weak right now. I've pledged to get us
    through this without layoffs or cuts in your wages and benefits. It's
    too bad the politicians can't get us through this without attacking
    our profits. To insure our survival I have to take a substantial
    portion of that $534,000 and set it aside for unexpected expenses and
    a worsening economy. Trouble is, the government is eyeing that money
    too ... and they have the guns. If they want it, they can take it.


    I don't want to make this too long. There's a great lunch waiting for
    us all. But you need to understand what's happening here. I've worked
    hard for 23 years to create this business. There were many years where
    I couldn't take a penny in income because every dollar was being
    dedicated to expanding the business. There were tough times when it
    took every dollar of revenues to replenish our inventory and cover
    your paychecks. During those times I earned nothing. If you want to
    see those tax returns, just let me know.


    OK ... I know I'm repeating myself here. I don't hire stupid people,
    and you are probably getting it now. So let me just ramble for a few
    more minutes.Most Americans don't realize that when the Democrats talk
    about raising taxes on people making more than $250 thousand a year,
    they're talking about raising taxes on small businesses. The U.S.
    Treasury Department says that six out of every ten individuals in this
    country with incomes of more than $280,000 are actually small business
    owners. About one-half of the income in this country that would be
    subject to these increased taxes is from small businesses like ours.
    Depending on how many of these wonderful new taxes the Democrats
    manage to pass, this company could see its tax burden increase by as
    much as $60,000. Perhaps more.


    I know a lot of you voted for President Obama. A lot of you voted for
    Democrats across the board. Whether you voted out of support for some
    specific policies, or because you liked his slogans, you need to learn
    one very valuable lesson from this election. Elections have
    consequences. You might have thought it would be cool to have a
    president who looks like you; or a president who is young, has a buff
    body, and speaks eloquently when there's a teleprompter in the
    neighborhood. Maybe you liked his promises to tax the rich. Maybe you
    believed his promise not to raise taxes on people earning less than a
    certain amount. Maybe you actually bought into his promise to cut
    taxes on millions of Americans who actually don't pay income taxes in
    the first place. Whatever the reason .. your vote had consequences;
    and here they are.


    Bottom line? I'm not taking this hit alone. As soon as the Democrats
    manage to get their tax increases on the books, I'm going to take
    steps to make sure that my family isn't affected. When you own the
    business, that is what you're allowed to do. I built this business
    over a period of 23 years, and I'm not going to see my family suffer
    because we have a president and a congress who think that wealth is
    distributed rather than earned. Any additional taxes, of whatever
    description, that President Obama and the Democrats inflict on this
    business will come straight out of any funds I have set aside for
    expansion or pay and benefit increases. Any plans I might have had to
    hire additional employees for new stores will be put aside. Any plans
    for raises for the people I now have working for me will be shelved.
    Year-end bonuses might well be eliminated. That may sound! rough, but
    that's the reality.


    You're going to continue to hear a lot of anti-wealth rhetoric out
    there from the media and from the left. You can chose to believe what
    you wish .. .but when it comes to Carrington Automotive you will know
    the truth. The books are open to any of you at any time. I have
    nothing to hide. I would hope that other small business owners out
    there would hold meetings like this one, but I know it won't happen
    that often. One of the lessons to be learned here is that taxes ...
    all taxes ... and all regulatory costs that are placed on businesses
    anywhere in this country, will eventually be passed right on down to
    individuals; individuals such as yourself. This hasn't been about
    admonishing anyone and it hasn't been about issuing threats. This is
    part of the education you should have received in the government
    schools, but didn't. Class is now dismissed.


    Let's eat.
     
  2. Tim Lee

    Tim Lee Member

    Joined:
    Dec 3, 2006
    Messages:
    62
    Interesting stats in the email, however....

    "Transcript of remarks made by Leo Carrington (who doesn’t exist) to a mandatory meeting of all employees of Carrington Automotive Enterprises, Inc. (which doesn’t exist either) on August 17th, 2009 at the Royal Payne Hotel (a purely imaginary place) in Norfolk, Virginia (which does, in fact, exist)."

    Above is according to "dirtydemocrats.com" and Neal Boortz at the following url:

    http://townhall.com/columnists/NealBoortz/2009/08/17/just_a_little_company_get-together
    ------------------------------------------------


    Snopes.com doesn't say one way or the other if the contents of the email are validated....
     
  3. Steve W

    Steve W Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    5,118
    Location:
    Los Angeles
    No matter the above person or company exist or not, that's exactly what I'm planning to do with my company. My wealth were made by hard work and dedication, no one ever distribute any wealth to me. I even paid for my own education, because my father had a decent job so I was disqualified for financial aid.


    My partner already took pictures and recorded every employee's vehicle had stickers with words of "O" or "Change" in it. When we'll have to cut down cost to staying business, those will be on the priority list to go, after we evaluate performances.

    Life has consequences, your vote too.
     
  4. Dahaub

    Dahaub Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,309
    Good for you Stevie. This lets the world know how much you think of anyone who lets their political feelings known. What If one of those cars was borrowed by someone? What if the car was owned by someone else other than your employees???? You are a typical asshole in your statement and your treatment of employees. If anything other is true that would amaze me. I know some good lawyers who would be willing to take the cases of your let go employees for a small fee. What a champion you are. Very typical of the republicans today. Dan
     
  5. Hoosier Daddy

    Hoosier Daddy TS Member

    Joined:
    Jul 16, 2007
    Messages:
    967
    Oh great, another Snopes says. The MSNBC of informational web sites.
     
  6. stokinpls

    stokinpls Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    6,487
    Here's the story of a "champion dumocrat" who will no doubt be voting with their "heart" on the healthcare bill.

    "ABC News' Jonathan Karl reports:

    What does it take to get a wavering senator to vote for health care reform?

    Here’s a case study.

    On page 432 of the Reid bill, there is a section increasing federal Medicaid subsidies for “certain states recovering from a major disaster.”

    The section spends two pages defining which “states” would qualify, saying, among other things, that it would be states that “during the preceding 7 fiscal years” have been declared a “major disaster area.”

    I am told the section applies to exactly one state: Louisiana, the home of moderate Democrat Mary Landrieu, who has been playing hard to get on the health care bill.

    In other words, the bill spends two pages describing would could be written with a single world: Louisiana. (This may also help explain why the bill is long.)

    Senator Harry Reid, who drafted the bill, cannot pass it without the support of Louisiana’s Mary Landrieu.

    How much does it cost? According to the Congressional Budget Office: $100 million.

    Here’s the incredibly complicated language:

    SEC. 2006. SPECIAL ADJUSTMENT TO FMAP DETERMINATION FOR CERTAIN STATES RECOVERING FROM A MAJOR DISASTER.

    Section 1905 of the Social Security Act (42 U.S.C. 1396d), as amended by sections 2001(a)(3) and
    2001(b)(2), is amended— (1) in subsection (b), in the first sentence, by striking ‘‘subsection (y)’’ and inserting ‘‘subsections (y) and (aa)’’; and (2) by adding at the end the following new subsection:

    ‘‘(aa)(1) Notwithstanding subsection (b), beginning January 1, 2011, the Federal medical assistance percentage for a fiscal year for a disaster-recovery FMAP adjustment State shall be equal to the following:
    ‘(A) In the case of the first fiscal year (or part of a fiscal year) for which this subsection applies to the State, the Federal medical assistance percentage determined for the fiscal year without regard to this subsection and subsection (y), increased by 50 percent of the number of percentage points by which the Federal medical assistance percentage determined for the State for the fiscal year without regard to this subsection and subsection (y), is less than the Federal medical assistance percentage determined for the State for the preceding fiscal year after the application of only subsection (a) of section 5001 of Public Law 111–5 (if applicable to the preceding fiscal year) and without regard to this subsection, subsection (y), and subsections (b) and (c) of section 5001 of Public Law 111–5.

    ‘‘(B) In the case of the second or any succeeding fiscal year for which this subsection applies to the State, the Federal medical assistance percentage determined for the preceding fiscal year under this subsection for the State, increased by 25 percent of the number of percentage points by which the Federal medical assistance percentage determined for the State for the fiscal year without regard to this subsection and subsection (y), is less than the Federal medical assistance percentage determined for the State for the preceding fiscal year under this subsection.

    ‘‘(2) In this subsection, the term ‘disaster-recovery FMAP adjustment State’ means a State that is one of
    the 50 States or the District of Columbia, for which, at any time during the preceding 7 fiscal years, the President has declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act and determined as a result of such disaster that every county or parish in the State warrant individual and public assistance or public assistance from the Federal Government under such Act and for which— ‘‘(A) in the case of the first fiscal year (or part of a fiscal year) for which this subsection applies to the State, the Federal medical assistance percentage determined for the State for the fiscal year without regard to this subsection and subsection (y), is less than the Federal medical assistance percentage determined for the State for the preceding fiscal year after the application of only subsection (a) of section 5001 of Public Law 111–5 (if applicable to the preceding fiscal year) and without regard to this subsection, subsection (y), and subsections (b) and (c) of section 5001 of Public Law 111–5, by at least 3 percentage points; and ‘‘(B) in the case of the second or any succeeding fiscal year for which this subsection applies to the State, the Federal medical assistance percentage determined for the State for the fiscal year without regard to this subsection and subsection (y), is less than the Federal medical assistance percentage determined for the State for the preceding fiscal year under this subsection by at least 3 percentage points.

    ‘‘(3) The Federal medical assistance percentage determined for a disaster-recovery FMAP adjustment State under paragraph (1) shall apply for purposes of this title (other than with respect to disproportionate share hospital payments described in section 1923 and payments under this title that are based on the enhanced FMAP described in 2105(b)) and shall not apply with respect to payments under title IV (other than under part E of title IV) or payments under title XXI.’’. "
     
  7. Jimmyc

    Jimmyc TS Member

    Joined:
    Jan 29, 1998
    Messages:
    450
    I'd do the same thing. There are consequenses to everything and the uniformed and mostly ignorant dumbacrats need to see them. I work hard no union no welfare no govt assistance. Don't need some a hole blankety blank in Washington takin my money to pay for some lazy asses who don't work and take advantage of the system. I know all democrats are not like this but that's where the parties heading.
    Jimmy
     
  8. Setterman

    Setterman Well-Known Member

    Joined:
    Feb 12, 2007
    Messages:
    11,159
    Dahaub, Should the employer experience 100% of the additional cost of a political move? When you've built a business and stuck your d--k in the window, risking everything you own, your attitude changes on this stuff.
     
  9. Ross

    Ross Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    2,646
    Glad i disbanded my small business when i did (& retired) as i would have been forced out anyway if very many of the proposed CHANGES actually come to pass.

    Ross
     
  10. Dahaub

    Dahaub Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,309
    I am crying a river for those poor republicans who are quiting their businesses because of having to provide for their employees. What a crock of republican you guys have stepped in. when is the new legislation going to go into effect???????????? Better get the word out so all the cut and run republicans can go out of business so they aren't going to pay for those rotten employee benefits. What a great place to work. I'll betcha there are hundreds of people waiting to take the jobs of those who are going to be fired over this legislation. Right. Dan
     
  11. Brian in Oregon

    Brian in Oregon Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    25,254
    Location:
    Deplorable Bitter Clinger in Liberal La La Land
    Regardless of whether this story is fact or fiction, the bottom line is that it is exactly correct in how small businesses operate. And taxes roll downhill.<br>
    <br>
    Faced with continuing and often excessive tax increase, the business owner has four choice:<br>
    <br>
    Absorb the taxes. Problem with this is that the business owner has his own personal budget, too. Some years the business owner barely gets more than what pays the mortgage, if that. Or as illustrated in the article, money is not set aside for expansion. Absorbing tax increases can only be done in the short term, and generally only if the economy is good, hence business is good. In a bad economy, there is no wiggle room for absorbing these taxes.<br>
    <br>
    Raise prices. This is a popular tactic, but a lot really depends on consumer reaction. It risks a consumer backlash, and the consumer shopping elsewhere. Consumers are on budgets too. Mom and pops who could not cut their expenses and had to raise prices saw customers go to Wal Mart, the Internet, etc.<br>
    <br>
    Cheapen their product and/or reduce the quality of their service. Well, this is as bad if not worse than raising prices. Oh, they might get away with it for the short term. But eventually customers will go somewhere else.<br>
    <br>
    Cut wages, benefits, or eliminate raises or bonuses. A very viable alternative. However, it also has problems with employee morale. Especially for the more socialist employees who buy into the liberal rhetoric and simply do not understand what the small business owner is facing. The few employees who are really worth their salt can sometimes get a merit increase on the side, but often the business is left with substandard employees if the good employee can find work elsewhere. In a bad economy, that can be tough. In a good economy, the worker can more readily sell his ability to those who can pay better. And some will leave when the economy gets better. This can actually fall into the realm of reducing service by being left with substandard or average employees.<br>
    <br>
    Lay off works. Often the best alternative for a small businessman. Unless unionized, he can get rid of the substandard employees and keep the best. And the best, out of loyalty and no pay cut, often will gladly pick up the overload and work harder. Often it's cheaper to pay a reasonable amount of overtime than it is to hire another employee. As long as the customers are happy and the hard working employee is not being run into the ground, there is no real downside to this for the small business owner. The downside is for the employees laid off.<br>
    <br>
    Make no mistake, small business employers must chose one of the above options. And most of the time it will be layoffs.<br>
    <br>
    It is quite reasonable to state that tax increases will result in more unemployed.
     
  12. stokinpls

    stokinpls Well-Known Member

    Joined:
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    Messages:
    6,487
    The dumocrats would "cut and run", but they don't own any businesses. They don't want work where you have to show up every day either, or take that 3 am phone call.

    Lookee Dan, it wasn't dumb ol' Georges fault after all. ^
     
  13. Setterman

    Setterman Well-Known Member

    Joined:
    Feb 12, 2007
    Messages:
    11,159
    You didn't answer the question Dan. Many businesses net less than 5% profit, yet the current administration wants cap and trade, national health care, and increase taxes. Owning a business isn't a frick'n hobby. You have to be in the black to survive. What don't you understand??
     
  14. Paladin

    Paladin Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    4,399
    How much more apparent can it be that liberals like Dahaub, very simply have no concept, no experience, no understanding, no clue, of what is involved with owning and running a business.
     
  15. code5coupe

    code5coupe Member

    Joined:
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    955
    Not only no clue about how businesses (large or small) are run, but about life in the USA in general. You think the economy is bad in this country now, just wait until the present administration gets through with us.
     
  16. Frank C

    Frank C Well-Known Member

    Joined:
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    2,866
    just curious dahaub.....what do you do for work? On the public tit no doubt, come on let us know....
     
  17. Steve W

    Steve W Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    5,118
    Location:
    Los Angeles
    Dahub, I know your name, but don't feel like go on first name bases with you.

    And I don't feel any needs to talk about political issue & right or wrong with someone that far away from common sense and common decency.

    But I do like to stop you from wondering the possibility of misidentifying my employee's vehicles. We are in a secured facility, every vehicle inside the premises were registered with original DMV registration and owner's DL. Everyone working here has to pass back ground check and meets certain Federal government requirements. There's no mistake who is driving what. Or even who is late on child support checks.

    As far as your ambulance chasing lawyers, don't bother. People got fired everyday for reasons way beyond your left working brain's capacity. If I ever worry about your blood sucking lawyer friends, I wouldn't be in business.

    My business involves life threatening consequences of my customers, I don't take anything easy, trust me, if I want to fire an under performance employee that happen to be a left wind idiot, he's gone.
     
  18. Paladin

    Paladin Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    4,399
    Maybe this explains why Dahaub is so bitter.


    "Democrats & Unaffiliateds More Likely To Be Unemployed Than Republicans"


    "Data from Rasmussen Reports national telephone surveys shows that 15.0% of Democrats in the workforce are currently unemployed and looking for a job. Among adults not affiliated with either major party, that number is 15.6% while just 9.9% of Republicans are in the same situation".


    Blame Barney Frank and Hussein... YOUR buddies, Dahaub...


    Oh, let me give you the results of the second to the last election. Read it and weep. The results of the last election,,are even better..

    "The Rasmussen Reports daily Presidential Tracking Poll for Thursday shows that 27% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as President. Forty-one percent (41%) Strongly Disapprove giving Obama a Presidential Approval Index rating of -14. That matches the lowest Approval Index rating yet recorded for this President.
     
  19. BIGDON

    BIGDON Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    6,625
    Location:
    Michigan
    Dahaub have you ever put ever thing you own on the line??? I want to know who is going to write the paychecks when all the small businesses say frig it?? I will not pay the extra taxes or provide the health care, I will close the doors. I already have one laid off employee sitting on her butt at home drawing unemployment for now up to 24 months. My business is my retirement and I will be damned if I am going to give it to the gov't or anyone else. By the way all my employees and their union husbands voted for Obama. Their right and their choice but now the consequenses.

    Dahaub please if you do actually shoot let it be know who you are as I and many other would prefer not to shoot with a socialist.

    Don
     
  20. Frank C

    Frank C Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    2,866
    more silence from dahaub.....typical
     
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