America Goes Dark, by every Progressive’s favorite economic demagogue and Obama cheerleader, Paul Krugman, blames America’s economic and infrastructural demise on…you guessed it…the greedy rich people hoarding all that cash.
However, a commenter at the end of the article really brought it home when he completely destroyed Krugman’s soliloquy with this brilliant bit of logical deconstruction, quoted here in full for posterity to review when they’ve run out of other people’s money.
I am a Democrat that voted for President Obama. I do not agree with Mr. Krugman’s government spending philosophy to get us out of the economic morass. Government finance is no different than an individual or a co…mpany… if you spend more than you make, you will go bankrupt. Mr. Krugman advocates that the government keep spending while we raise taxes on the rich to compensate.
Well, I guess I fall into his “rich” category. I own a global business. I employ 150 folks full-time in India, 60 folks full-time in the US and 5 in the UK. My company made a before tax profit of $1,800,000 last year. I personally bring home less per year than I pay in taxes. Why? Because as an LLC, every bit of profit I make is taxed on my personal taxes. I bring home around $185k and pay around $600,000 in federal taxes. The rest is plowed back into the company to hire more folks and buy additional infrastructure. Also, I pay employee health and dental care, retirement benefits, 401k matching, long and short term disability and dental. I don’t borrow anything to do this.
That extra 4% of federal taxes (once the Bush tax cuts expire) will cost me an additional $70,000 or so. On top of that, the President advocates increasing the cap on Self Employment tax. The new taxes would add an additional $22,000. I am looking at around $92k in total additional taxes. So, some of you would say deduct from your $185k take home. Others would say, simply don’t hire an additional two employees or cut some of those rich benefits you give to your employees.
Either way I go, you have just taken $92,000 out of the hands of someone who can use that money to increase America’s wealth… either by adding employees or buying additional computers, etc. So, since the government will take it from me… where should that money go? To bailing out banks? How about bailing out someone in foreclosure? Hmmm… maybe you could use it to bail out the states or the local governments. California perhaps? How about Bell, California?
I don’t see how that helps America, Mr. Krugman.