Extending the Bush tax-cuts beyond 1/1/2011 for those of us who make over $250,000… YES!
Alvin Estevez
I’ve never been politically involved, this is the first time I’ve ever joined a political web discussion , so go easy on me on this post.
For the last 10 years I kept my nose to the grind stone of my business. My partners and I founded our business in 1999. We were an upstart with no financing, no credit, and no loans. We literally created our business from a dirty basement in Flushing, Queens, NYC with the sweat of our brow and our meager savings.
We are the creators of a security software utility called “SpyHunter”. We employ 50 people from the US(10), Europe (30), and South Africa (10). We work long hours and sacrificed our free time and quality time with families to build our business. Currently our product has been sold to over 1.5 Million people across the planet and growing. Our profit margins are over 55%, so there lies the problem when the tax-cuts expire on January 1st, 2011.
Most of our prosperity came after the Bush tax cuts in 2003. Here is why, the extra money we obtained from the cuts were re-invested back to our business to hire more people, develop new applications & technologies , and position ourselves to compete with our foreign competitors. So if on 1/1/2011, my partners, and I will pay 39.6% to the Feds + SS + Obama care + State Taxes (in my case 6%) + Misc Taxes, thus it seem that more than 50% of our earnings will go to the governments (Feds/State). Therefore, what is my incentive to hire people, to invest more in my business, to invest more in the United States economy? The answer, I will not be motivated to hire my fellow Americans, rather I will send more jobs abroad. I will horde my earnings, since what is the point of re-investing in my business?
My “beef” is where was the government when I was in that dirty basement in Flushing? We never asked for their assistance, we never asked for a dime from any institution, and yet they see fit to over tax us and stunt our growth. Then you see the cable news commentators and on TV wondering why are people unemployed? What can we do for those who hire people to hire more people? Well I will ask, when did they ask us what we wanted, what we really need?
I can’t speak for the people of this threat, but I can speak for partners and myself:
1. Extend the Bush tax cuts beyond 1/1/2009 (Do not rock the boat!)
2. Rather than an economic stimulus bill, give all employers a full tax credit for the entire salary of each US employee yearly (for a term of 3 years, until the economy recovers)
3. There should be more people from small business in the President’s cabinet, and more people from business advising these politicians, so they can set the proper policies that will allow us to do what we do best, make money and employ people.
For the record, I do not know where these politicians live, but in my region of the country. Two working professionals combined household income is over $250,000! Most small businessmen I know make over $250,000 a year, so who are they kidding? This is full blown taxation without representation!
If they revoke the Bush tax cuts, this will be the next blow to the economy….
Alvin Estevez
Patricia,
I guess this issue is now moot, since Obama comprimised with the Congressional Republicans.
To answer you statement: "On anything over and above 250 you will be expected to pay more. 4.6% more. You get more tax breaks as a small business than I do as an individual."
This is not entire true, since once you go over $250,000, you will be taxed at a higher tax bracket.
Most business owners use LLCs or S-Corps, so your Earnings are taxed as at an individual rate.:(
Also, you lack of pitty is disturbing, since many of us (collectively) are the mayority of the employers of this country.
When the Feds hurt us, they hurt the engine of job creation.
I am pleased the administration, with republican pressure, understood this message.
Cheers!
Alvin
January 4th at 7:17pm
Patricia Borntrager
What do you not understand about OVER 250K?? That means on the first 250 you will have no increase. On anything over and above 250 you will be expected to pay more. 4.6% more. You get more tax breaks as a small business than I do as an individual. Something else I noticed in your post. You employ 10 Americans, 30 Europeans, 10 in South Africa. You are an AMERICAN, you are one of those shipping jobs overseas. Is the bulk of your business in Europe?, because that's where the bulk of your employees are. Now, we know you pay no health care costs for those Europeans, I'm not sure about South Africa. Do you pay health insurance costs for your US employees? How about a pension fund or 401K? Do you contribute to all of these?
Sorry,,,no pity here. Again,,,NO INCREASE UNDER 250K.......
October 13th at 3:56pm
U.S. Chamber SBN
@Nuala Kavanagh - Here are some of the reasons ALL Americans should be warry of the looming tax increases (not just the top 2% as you mention):
American small businesses will face marginal tax rates as high as 39.6%. Compounded with the loss of certain itemized deductions and personal exemptions, these small businesses face rates as high as 41.6%. And this increase hits our successful small businesses, our job creators, particularly hard. Approximately half of the business income reported on tax returns in 2011 will be subjected to the top two marginal rates.
Older Americans will also be disproportionately hurt by tax increases on investment income. In 2008, 71% of dividend income was earned by taxpayers age 55 and older. A third of taxpayers with capital gains income were 65 and older. Another 40% of those with capital gains income were between ages 45 and 65, earning nearly half of all capital gains income. These Americans, who have invested for decades for retirement, will feel the pain.
These tax increases hit more than just the so-called rich 2%. This hits employers and job-creators at a time when we can't afford it.
Extending existing tax rates would, in one bold stroke, boost investor, business, and consumer confidence by taking the uncertainty of tax policy off the table. It would leave hard earned income in the hands of the individuals and businesses that earned it and allow them to spur investment, boost consumption, promote economic growth, and create jobs.
Do you fully realize the negative effects of these tax hikes?
October 12th at 2:12pm
Nuala Kavanagh
The Bush Tax cuts destroyed the economy of the United States in the last nine years. $777 billion dollars lined the pockets of the top 2% of taxpayers in this country and created zero jobs. It created a cadre of crooks who brought down the economy, destroyed the middle and working class, caused millions of foreclosures, caused those workers who were endeavoring to provide a little bit of a nest egg for their retirement years to lose 1/2 of their savings, but made it possible for the rich to reap all the benefits. Now that's what I call anti-American and the Chamber of Commerce is in bed with them and set to bring down the current duly elected government by enabling foreign Corporations to decide who will front the next government. I hope you are all proud of this country now that it is at the bottom of the list of countries people want to live in. Your wish has been granted.
October 6th at 3:12pm
U.S. Chamber SBN
Hi Alvin,
Each spring, the U.S. Chamber provides an opportunity for small businesses from all over the country to speak to their Congressmen in person on the Hill. The Chamber hosts America's Small Business Summit annually, and it's a great place for small business owners to network, get training in best practices, and voice their concerns to their legislators. Here's the Summit website if you're interested in learning more: http://www.uschambersummit.com/
Also, if you'd like to explore other ways to make the most of your small business membership in the U.S. Chamber, you can email me directly at smallbusiness@uschamber.com and we can discuss other ways you can make your voice heard.
Thanks for your interest in making a difference for small businesses. We need more small business owners out there like you.
October 1st at 6:30am
Alvin Estevez
US Chamber SBN,
I completed the form on http://bit.ly/cBYs8M, but it would be nice to see other business owners participate in this discussion. I feel a bit alone out here.
Is there a pannel of business owners within the US Chamber of commerce where we would address legislators to hear our voices directly?
I know others feel the same way I do, but it seems we do not have a platform to address those issues to goverment. This is why I joined the US Chamber.
I know we are all busy working hard on our businesses, but this year we need to speak out.
Thanks,
Alvin
September 16th at 2:34pm
U.S. Chamber SBN
Thanks for posting your insights Alvin! The Administration and Congress need to hear from more small business owners like you. Please invite your friends and contacts to join in on this discussion. We'll do our best to get more business owners to chime in here as well.
If you're interested in sending an email to your legislator, check out our action alert here: http://bit.ly/cBYs8M
September 9th at 7:17am
