"This Is Why There Are No Jobs In America", by Porter Stansberry

Originally posted by MuzzleBreak
Wealth means the abundance of available goods and services.

Apart from wealth itself, there is also its distribution. In a typical third-world country, the top tier has all they want, the bottom 99% don't have much at all. So there is wealth, sure, it doesn't mean it does a nation good.

Originally posted by NOTurTypical

I'd like to make you a business offer.

Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment...

Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in – as long as it's legal.

But I can't give you any capital – you have to come up with that on your own. I won't give you any labor – that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair: to tell you what to do.

Now in return for my rules, I'm going to take roughly half of whatever you make in the business each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits.

You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."

Now... after you've put your hard-earned savings at risk to start this business, and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out – to finally live the good life.

Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I'm happy for you to sell whenever you'd like... because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.

I know... I know... you put up all the original capital. You took all the risks. You put in all of the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business.

Oh... and one more thing...

Even after you've sold the business and paid all of my fees... I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth.

After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children.

All in all, if you're a very successful entrepreneur... if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public... you'll end up paying me more than 75% of your income over your life. Thanks so much.

I'm sure you'll think my offer is reasonable and happily partner with me... but it doesn't really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail.

That's how civil society is supposed to work, right? This is Amerika, isn't it?

That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs...

Regards,

Porter Stansberry

Daily Wealth.


This is how Uncle Sam partners with our companies from east to west coast, north to south. This is NOT Capitalism. You guys out there that hate Capitalism will hate this satire, but it's actually funny satire because it's true. The US is not Capitalist, and hasn't been for quite some time. That's my opinion of the satire letter, what's yours?

This whole article is a load of crap pushed by the "Conservatives". The so called regulations concerning where and when you can operate, come from your state and local governments, that the "Conservatives" want to give more power too.

The 12% you talk about is double what you actually pay, 6% of that 12% number is deducted from your employees paychecks. C Corps actually pay very little in taxes due to all of the loopholes and deductions they are allowed, didn't GE Capital get a several hundred million dollar refund this year, and paid no Corporate tax.

The OP quoted the article, so am not going to blame him, but the author of the article is another money grubbing, greedy, low life. Come on folks, do a bit of research before drivel like this is posted. I do taxes for a living, so please, do not try to blow smoke up everyone's posterior.

The Gov needs the money more than you.

You would just waste it on frivolous things like food and shelter.

If things do not change rather quickly, the only jobs left will be government jobs.

What, we can't all work for Gov? Worked great for Greece...

Originally posted by buddhasystem

Originally posted by MuzzleBreak
Wealth means the abundance of available goods and services.

Apart from wealth itself, there is also its distribution. In a typical third-world country, the top tier has all they want, the bottom 99% don't have much at all. So there is wealth, sure, it doesn't mean it does a nation good.

The third world is the third world because we have established a system whereby their governments buy our debt, while at the same time those governments benefit by printing up the money to buy that debt.

Ergo, third world governments print money and expand their power by leveraging US Treasuries, thereby crushing what few private sector jobs are created there. This scheme enriches the third world bureaucrats at their citizens expense, while simultaneously preventing any serious competition from forming that might threaten our domestic multi-nationals.

This criminal system of fraud also has the ancillary benefit of exporting US inflation to those nations who buy up our debt. This will last until those foreign nations finally realize the US is bankrupt and start dumping our treasuries, at which point the only buyer left will be the Fed. - Hello hyper-inflation.

There is a reason why the first thing we established after blowing up Libya was a central bank. The fighting was still going on when we set it up.

www.bloomberg.com...

Great system you are supporting there.

there's no job in america because inflation drives them overseas. see how easy that was, one sentence.

The tax rate for small business, you know, the ones that create the VAST MAJORITY OF THE JOBS, can be even higher than 50 percent. Yes, I know from experience.
Don't even try to compare me to these big investment bankers corporations that feed off of people like me, and you, yet pay little in taxes.
This is how they divide and conquer us. Those of us that know what is going on, don't get respect from those that don't, which are most people. I see it here all of the time.
I have paid more in taxes than I earned, GROSS, and I am not the only one.
No, you won't see that on the MSM, but then, you won't see much but fluff on the MSM. The system is hopelessly broke, but it isn't because of business, it is because of corruption and OUR apathy.

reply to post by NOTurTypical


Yup. I think that capitalism left the western world a long time ago, to be replaced by corporatism. Where capitalism seeks to promote self-reliance and a healthy economy, corporatism seeks only to generate vast profits at any cost. When I say "at any cost," I mean our health, the environment, planned obsolescence, the whole kit and caboodle. Pretty much every serious problem in the world today is the result of corporate malfeasance that is never punished. The Conrad Black's among them may take the fall, but those at the top are, for all intents and purposes, untouchable. Think Al Capone times 100 000. Some serious stuff. It's a system in which nothing is sacred, everything and everyone has a price, and life is of little to zero value. It's called the "American Dream" because you have to be asleep to believe it. (RIP Bill Hicks)

Companies don't move to other countries because they're taxed to hell. You have to be insane to think that. They move there so they can pay poor starving people low wages that wouldn't be acceptable in any fair and correct society. Seriously is it really that hard to figure out?

Originally posted by SurrealisticPillow
The tax rate for small business, you know, the ones that create the VAST MAJORITY OF THE JOBS, can be even higher than 50 percent. Yes, I know from experience.
Don't even try to compare me to these big investment bankers corporations that feed off of people like me, and you, yet pay little in taxes.
This is how they divide and conquer us. Those of us that know what is going on, don't get respect from those that don't, which are most people. I see it here all of the time.
I have paid more in taxes than I earned, GROSS, and I am not the only one.
No, you won't see that on the MSM, but then, you won't see much but fluff on the MSM. The system is hopelessly broke, but it isn't because of business, it is because of corruption and OUR apathy.

I would be real curious to see the numbers to back up that claim, because if that is the case, at least here in the USA, you are not dealing with the right bookkeeper or accountant. I am going to try and lay out some numbers here.

I have a mil in sales which I show a gross profite of 300K, from that 300K, I get to subtract all of my expenses, the only one that is limited is meals and entertainment, and I only get 50% of that. Then on top of all my actual expenses, I get to deduct the amazing depreciation (which is not a cash outlay), which most likely will take me into a loss category, and then I pay no corporate income tax to the feds. Now that being said, I may pay taxes to the state and local government, I have paid nothing to the feds, but we know the fed is evil, and state and local are the all knowing all seeing gods of regulations.

I own an apartment building with 12 units that I clear about 4K a year on, but with the wonderful depreciation, I have shown a loss on it every year, which reduces both my federal and state tax burdens. The tax laws in this country suck, but corporations are not being taxed to death by the fed, if they are being taxed to death, it is by the state and local governments. Good example, I completed a form for a client yesterday, I will probably have to charge him 50 bucks for my time, the city collected 1 dollar in tax. What a waste of resources.

Originally posted by AnarchoCapitalist
The third world is the third world because we have established a system whereby their governments buy our debt, while at the same time those governments benefit by printing up the money to buy that debt.

Third world is the third world because the democratic society did not evolve yet to be effective in protecting the working class from the ravages of rabid capitalists.

Originally posted by buddhasystem

Originally posted by AnarchoCapitalist
The third world is the third world because we have established a system whereby their governments buy our debt, while at the same time those governments benefit by printing up the money to buy that debt.

Third world is the third world because the democratic society did not evolve yet to be effective in protecting the working class from the ravages of rabid capitalists.

Which is why the Soviets imploded and North Korea is doing so great.

If only the Koreans and Soviets had bigger governments to protect their citizens, they could all be living in a Utopia by now.

I'm a firm believer that with enough regulations, rules and taxes, humanity can create heaven on Earth.

Originally posted by AnarchoCapitalist

Originally posted by buddhasystem

Originally posted by AnarchoCapitalist
The third world is the third world because we have established a system whereby their governments buy our debt, while at the same time those governments benefit by printing up the money to buy that debt.

Third world is the third world because the democratic society did not evolve yet to be effective in protecting the working class from the ravages of rabid capitalists.

Which is why the Soviets imploded and North Korea is doing so great.

Indeed, that's why. And that's why Scandinavia is doing just fine, and even places like the Czech Republic are pretty sweet.

I love Switzerland, too, but I don't recommend you go there, you are going to have a heart attack because of their anti-capitalist policies.... Which made them so damn wealthy.

Originally posted by buddhasystem

Originally posted by AnarchoCapitalist

Originally posted by buddhasystem

Originally posted by AnarchoCapitalist
The third world is the third world because we have established a system whereby their governments buy our debt, while at the same time those governments benefit by printing up the money to buy that debt.

Third world is the third world because the democratic society did not evolve yet to be effective in protecting the working class from the ravages of rabid capitalists.

Which is why the Soviets imploded and North Korea is doing so great.

Indeed, that's why. And that's why Scandinavia is doing just fine, and even places like the Czech Republic are pretty sweet.

I love Switzerland, too, but I don't recommend you go there, you are going to have a heart attack because of their anti-capitalist policies.... Which made them so damn wealthy.

I'm sorry, did you say the Swiss were spending a trillion a year on defense spending? I didn't get that memo.

In terms of equivalent government spending the Swiss are misers. They just happen to spend their money on less destructive things.

Swiss public debt, 38.3% of GDP 2010

Compared to US which is now over 101%

Czech Public debt: 38.9% of GDP (2010 est.)

Sweden Public debt: 39.7% of GDP (2010 est.)

All three countries are MUCH more stingy with public money than the US is.

While they may have more socialist public services, their economies are clearly much more capitalist in nature otherwise their debt ratios would be much higher. The printing of money reflects how large the government is. When a government has to print (more debt) in order to sustain itself, it has over-grown its ability to tax the private sector enough to sustain itself.

A nation that taxes as much as it spends should have a zero debt to GDP ratio.

While we like to claim that we have a capitalist economy, we have nothing of the sort compared to the Swiss. All of the corporations that make their living off of government contracts, handouts, bailouts, grants, etc.. are not real capitalist corporations. The market is not keeping them alive, the State is. Obviously our entire defense industry has no capitalist market value and makes its entire living off of State contracts.

The same goes for corporations that benefit from Medicare handouts, as well as Universities that benefit from State financial aid. The market would never allow them to charge that much for their services. The State is responsible for funding those markets.

Originally posted by Reptius
Companies don't move to other countries because they're taxed to hell. You have to be insane to think that. They move there so they can pay poor starving people low wages that wouldn't be acceptable in any fair and correct society. Seriously is it really that hard to figure out?

Taxes are at 70%, can you name a business than would appropriate 70% of their profits toward labor?

reply to post by BubbaJoe

It has nothing to do with the right bookkeeper or accountant, it is the nature of some businesses that they will be overtaxed, and others undertaxed.
I rent construction equipment. Much of this equipment is financed, but not all or even most. So, the note payments have to be paid out of cash flow regardless of how well the cash is flowing. In an economic downturn, this severely limits options because all available cash goes to business expenses. In other words, there is no room to take advantage of tax benefits that come from any new investments I may want to make.
I own the buildings (note payments also), so I am taxed on the income to pay those note payments. In fact, my only income may be what I HAVE to draw out to pay those payments on the facilities that I use. So, realistically, I can have NO income, and be taxed. In fact, that has been the case. One year, I took virtually NO money out of the business yet had a tax bill and a fee from my accountant.
This does not include the state taxes. Texas tried to modify the franchise tax last year, and it would have put me completely out of business. Apparently I wasn't the only one. They were forced to change it.
The property tax in Texas has averaged anywhere from 20 percent of my take home to more than my take home pay in a bad year.
Did I mention the licensing fees for trailers and trucks? Yes, I have to pay that too, even if they are mostly just sitting. The state doesn't care.
I could go on, but, what is the use.

reply to post by NOTurTypical


Well written and fairly accurate. As a Small Business Owner operating under and SP, I can say that is pretty accurate.

I'm taxed based on a $400,000 income even though I end up with only a spendable income of around $40,000 in recent years.

When Obama took office, my annual spendable income was nearly twice that. When Bush took office, it was over six figures. I have two employees who will earn more than I this year. I manage because my Wife is now working full time in our business. I'll survive because I don't mind working, even though I should be thinking about hiring a manager and retiring right now. Lot's of us in this boat, crossing our fingers the voters stop believing the lies. They won't. They think we are rich.

Then we have to sit and watch the Occupiers who are apparently as literate as my Wife's Cat's on financial matters. I watch and think how badly the educational system has failed them and actually have sympathy for them. I dread to think what a surprise is coming when the government runs out of stolen money to give them. Robin Hood only works in fiction.

Once Obama wins again, he will have no reason to lie anymore and he can then do the damage he intended from the start. The idea of people making it on their own angers his type so much, he would not give a damn who he hurts. Sadly his hardest hit victims will be those who support him.

How many noted he said he was going to ask Congress to increase his powers in the last State of the Union?

Originally posted by SurrealisticPillow
reply to post by BubbaJoe

 

It has nothing to do with the right bookkeeper or accountant, it is the nature of some businesses that they will be overtaxed, and others undertaxed.
I rent construction equipment. Much of this equipment is financed, but not all or even most. So, the note payments have to be paid out of cash flow regardless of how well the cash is flowing. In an economic downturn, this severely limits options because all available cash goes to business expenses. In other words, there is no room to take advantage of tax benefits that come from any new investments I may want to make.
I own the buildings (note payments also), so I am taxed on the income to pay those note payments. In fact, my only income may be what I HAVE to draw out to pay those payments on the facilities that I use. So, realistically, I can have NO income, and be taxed. In fact, that has been the case. One year, I took virtually NO money out of the business yet had a tax bill and a fee from my accountant.
This does not include the state taxes. Texas tried to modify the franchise tax last year, and it would have put me completely out of business. Apparently I wasn't the only one. They were forced to change it.
The property tax in Texas has averaged anywhere from 20 percent of my take home to more than my take home pay in a bad year.
Did I mention the licensing fees for trailers and trucks? Yes, I have to pay that too, even if they are mostly just sitting. The state doesn't care.
I could go on, but, what is the use.

If your stuff is financed, all of that is deductible, the license fees for the trailers and trucks is also deductible. Your buildings and equipment all have depreciation attached to them. I do understand that you are paying taxes, but you aren't paying taxes on the revenues of the business if you are losing money. You may be paying taxes to the state and local governments, but you are not paying federal income tax if you are showing a loss. I am not trying to be an ass here, but please, the taxes you are paying are to state and local governments, not to the federal government. Yes you may be paying SS and Medicare being self employed, but not an income tax.

reply to post by NOTurTypical


NOTurTypical,
Thank you for your share, and putting it so blatenly. I felt as a women in a managament position, reading this and imagining it in a coversation I thought wow Im talking to 'the man' himself! He sticks it to me every check. Even though quote The man is already doing this to me every day, every month every year. Thanks for reminding me and opening my eyes a little again. It made me grrr but it was worth the read!
Great Share.

Here is part of the problem guys, anything that is taxes is automatically blamed on the federal government.

Granted if your company makes a profit, a net profit, after all of the deductions. Whether a C Corp or S Corp taxes will be paid on a positive net income. Other than that, to the federal government, you pay Social Security and Medicare (Half of which is deducted from your employees paycheck), and Federal unemployment tax which is minimal. Other than those things all other taxes are paid to the state and local government. (A few exceptions for excise taxes etc) There is no federal sales tax or value added tax, the ones I listed above are all there is from the feds.

reply to post by Blaine91555


Blaine, what specific actions of Obama caused the deterioration of your situation? It's not a loaded question, I just am curious.