I came across this post by a person on a different website (that has to do with parenting) and wanted to post it, because I like to know the opinions of the situation by different people (especially business owners) and here's what she said:
Quote:It takes a LOT of money to run even a SMALL Business. It is not difficult to go above and beyond and show a NET of $250,000 while still bringing in a middle class income (seriously). Especially if you have a building that is paid off. I'm having a hard time believing that it will only affect 2% of Small business.... but haven't done my research to disprove that. $250,000 is chump change in just about any business. Let's face it, even in the midwest where we are, to run a "small plumbing company"...the buildings are typically MORE then $250,000 and commercial loans are shorter and therefore paid off sooner and therefore losing deductions on that sooner. Ugh, rambling a bit here... sorry, just took some medications for my Crohn's!
Just to lay it out for those inquiring about my personal status...Obama's plan WILL cause an increase in my family business. It's set up as a Corporation with 3 owners who own 33 shares each and 1 share remains unsold. I'm not an owner, but hope to be in the next 10-15 years, if not sooner. Regardless, I understand the risk Obama would attempt to take and affect small business. The issue is that it inevitably gets passed onto the middle class and the end-consumer. Doing what he will will force small business owners to do the trickle down effect in a NEGATIVE way, but you can't blame them. We are already starting to "lean" up the company and prepare for a difficult winter. If BO gets into office, we're even more worried about how the economy might head and the extra taxes that will force higher prices and less jobs. It's real stuff and I'm living in it. And, no, my parents DO NOT and have NEVER brought home more then $250,000, sheesh, I don't think they've ever brought home more then $150,000...EVER..and they've been in business for 26 years. Yet, THEY are the ones that will be penalized for BO tax laws...and they will have to decide the future of the "middle class" and they will be the ones who pass on the higher prices....inevitably affecting the middle class.
Maybe I'm not clear on my thinking, but quite honestly, this is how I understand things and it's not pretty....
In all honesty, I just can't wait for the election to GET OVER WITH because it is SEVERELY affecting the economy. The election, IMO, is increasing focus and anxiety on the economy and forcing people to STOP spending and in addition the banks are continuing to freeze money. When they request that you have nearly 40% down to build a SPEC home (a home that you build and someone basically comes and buys it off the market - brand new, versus building to suit), that is INSANE. It used to be a standard 10-15%. People have stopped building homes because of the freeze on loans. Like one of our reps explained... "The pendulum has swung from one extreme to the other. You used to only have to be able to spell "mortgage" to get one, and now you have to place your firstborn on it."
Regardless, the housing market drives the economy. I forget the exact estimates of the study, but it was a local one and basically nearly 50% of jobs were made of up of those that attributed to the housing market. That's a very real and scary statistic! Can you believe THAT many jobs? If the housing market flops completely, then those jobs are at risk....add in the BO tax plan on small business (and in housing, it's SO incredibly easy to go over the $250,000 and not have a dime in the bank), as well as the prices will soar.
Sorry! I went off on a tangent a bit. But BO's plan will inevitably slow the economy and cause the housing market to crash even more.... it's just the reality I'm living in... and it frightens me terribly, as it should!
I thought it interesting what she said about the housing market. My husband does building on the side, but there are other people in his family who do it full time. It is EASY to net $250,000 doing it and there are a ton of people employed in construction, so I can see her side of it.
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