One of the key objectives of any business, large or small, is "making payroll". In concept, it is extremely simple. Making payroll simply means having enough funds available to pay all your employees after having paid all other expenses and taxes. If there aren't enough funds to pay everybody, some worker or workers will have to go. Whenever making payroll is already tight, the business can't afford to hire any new employees.
Right now, it is "making payroll" that is behind the loss of jobs and the high rate of unemployment. It is also why business aren't hiring. All that business owners can see ahead of them is higher expenses and higher taxes that might make them less capable of "making payroll" in the future.
Business owners see is that their own state legislatures are raising taxes in order to fight rising state deficits. They see the advantage of the Bush Tax Cuts being ripped away from them next year. These see themselves being forced to provide health care benefits to all their employees or pay an 8% payroll tax penalty under the current health care reforms that are in Congress. They see high energy related expenses and also see themselves being forced to buy carbon credits if Cap and Trade is passed or if the EPA imposes carbon-controlling fines. They could also see unionization of their workforce if Card Check passes and they wind up having to pay their employees higher union wages and benefits.
All these factors weigh on their ability to make payroll.
What Obama and his naive academic economic advisers don't seem to understand is that business won't hire unless they can be assured that they can continue to make payroll. Giving a business a silly $5,000 tax credit to entice them to hire new employees is just political B.S. and stupidity when, in fact, those same businesses could be looking at many more times that number in increased taxes and expenses due to Obama's planned legislation.
If Obama really wants to create jobs, he should scrap health care reform and Cap and Trade. He should guarantee that the Bush Tax Cuts stay in place for at least another 5 years. Then, and only then, will business start hiring again.
Showing posts with label energy expense. Show all posts
Showing posts with label energy expense. Show all posts
Tuesday, February 9, 2010
Friday, March 20, 2009
What Obama's Climate Saving Plan Will Cost You
Obama, like most Democrats, is chin-deep into the belief that we need to save our planet from ourselves. For that reason they plan to control America's carbon dioxide output through the implementation of a "Carbon Cap And Trade" taxing system (See My Previous Blog Entry).
For now, putting aside the whole argument of whether or not man-made Global Warming is even real or just a bogeyman, let's just focus in on costs that you and I will all have to pay to save our planet.
Obama, the U.S. Senator running for President, co-sponsored a "Cap and Trade Bill" in the U.S. Senate and said that the cost to America would be a only about $366 billion dollars per year. But, even so, that would mean that every man, woman and child in this country will have to cough up more than $1200/yr to save the planet. For an average family of four, that's over $4,800 a year. That cost will be passed on to us in the form of higher energy and product costs from companies that are being penalized by "Cap and Trade".
Then, Obama, the President, says that number needs to be upped to $646 billion a year as reflected in his recently submitted budget of only two weeks ago. So, now, the average 2-child family will be on the hook for over $8,600 a year to fight Global Warming.
But, then, (Oooooops!) the new cost that is being bandied around by the White House is closer to $2 trillion a year (See Full Story). That means that the cost to the average family is now estimated to be over $26,700.
According to Wikipedia, the average salary was about $50,233 in 2007 (See Full Story). That means that Obama's plan will effectively eat up more than 1/2 of the income of an average single-wage-earner family.
My first concern is whether or not we can even trust the $2 trillion number, anymore? After all, the initial $336 billion number had to be doubled. Then, that number, had to be more than tripled to $2 trillion! What's next? Quadruple the $2 trillion number to $8 trillion? These numbers are just exploding in size and within a relatively short span of time.
When it comes to numbers accuracy, Obama and his people can't seem to be trusted (See my previous blog entry on Obama's numbers game). Don't forget, this is the guy who claimed, just last year, that he would create 4 to 5 million new jobs. Now, we're down to only saving, maybe creating, a couple of million.
Also, it isn't just Obama who wants to dig into our pockets to save the planet. The United Nations is on the verge of setting up a global tax on every barrel of oil with the idea that it will raise almost $800 billion dollars a year to fight global warming and revive the world's economies (See Full Story). Since this country uses about 25 percent of the world's oil, the average American family will have to chip in another $1000 a year to fight this silly fight.
What is really sad about all this Global Warming crap is the fact that, for every carbon footprint that you and I save in the United States, the developing countries like China, India, Indonesia, and those in South America and Africa will "offset" that carbon savings, in spades, with their own, new carbon dioxide output as their own economies continue to grow. Someone should explain to our legislators and to those in Europe that our atmosphere has no territorial boundaries. Just maybe, the carbon dioxide output in China will ultimately work its way all around the world. Ya think?
For now, putting aside the whole argument of whether or not man-made Global Warming is even real or just a bogeyman, let's just focus in on costs that you and I will all have to pay to save our planet.
Obama, the U.S. Senator running for President, co-sponsored a "Cap and Trade Bill" in the U.S. Senate and said that the cost to America would be a only about $366 billion dollars per year. But, even so, that would mean that every man, woman and child in this country will have to cough up more than $1200/yr to save the planet. For an average family of four, that's over $4,800 a year. That cost will be passed on to us in the form of higher energy and product costs from companies that are being penalized by "Cap and Trade".
Then, Obama, the President, says that number needs to be upped to $646 billion a year as reflected in his recently submitted budget of only two weeks ago. So, now, the average 2-child family will be on the hook for over $8,600 a year to fight Global Warming.
But, then, (Oooooops!) the new cost that is being bandied around by the White House is closer to $2 trillion a year (See Full Story). That means that the cost to the average family is now estimated to be over $26,700.
According to Wikipedia, the average salary was about $50,233 in 2007 (See Full Story). That means that Obama's plan will effectively eat up more than 1/2 of the income of an average single-wage-earner family.
My first concern is whether or not we can even trust the $2 trillion number, anymore? After all, the initial $336 billion number had to be doubled. Then, that number, had to be more than tripled to $2 trillion! What's next? Quadruple the $2 trillion number to $8 trillion? These numbers are just exploding in size and within a relatively short span of time.
When it comes to numbers accuracy, Obama and his people can't seem to be trusted (See my previous blog entry on Obama's numbers game). Don't forget, this is the guy who claimed, just last year, that he would create 4 to 5 million new jobs. Now, we're down to only saving, maybe creating, a couple of million.
Also, it isn't just Obama who wants to dig into our pockets to save the planet. The United Nations is on the verge of setting up a global tax on every barrel of oil with the idea that it will raise almost $800 billion dollars a year to fight global warming and revive the world's economies (See Full Story). Since this country uses about 25 percent of the world's oil, the average American family will have to chip in another $1000 a year to fight this silly fight.
What is really sad about all this Global Warming crap is the fact that, for every carbon footprint that you and I save in the United States, the developing countries like China, India, Indonesia, and those in South America and Africa will "offset" that carbon savings, in spades, with their own, new carbon dioxide output as their own economies continue to grow. Someone should explain to our legislators and to those in Europe that our atmosphere has no territorial boundaries. Just maybe, the carbon dioxide output in China will ultimately work its way all around the world. Ya think?
Subscribe to:
Posts (Atom)
Posts
