Wednesday, 26 September 2012

The Real Trickle-Down Situation

Millionaire Joe owns a company and pays his taxes on the revenue.  He'd be the first to admit that he takes every single credit, and off his profit.....he pays roughly nineteen percent on taxes.  He donates money to charities and fine foundations which help kids in trouble.  Joe is happy paying the nineteen percent.

Well....time passes, and some folks decide via Congress that Joe ought to pay an additional four million dollars (figure seven percent on top of the nineteen percent).

Millionaire Joe typically paid out bonuses to his staff of six hundred employees.  They ranged from $60k to $500 (the seven security guys all got $500 each).  Joe figures up the mess, and decides the extra four million will come from the bonus deal.

The Chief Finance Officer got the $60k bonus....which he typically used half on two trips to Vegas each year.  The CFO would fly him and his girlfriend into Vegas, hire up a fancy limo, stay at a luxery five-star place and really have a great time.  The $30k spent on Vegas?  Gone.  The limo driver?  He lost two big-ticket moments from his 300-day calendar.  The hotel?  They have to hope for a replacement for the two lost weeks in the five-star hotel room.

The IT technican Bob?  He took home a $4k bonus.  He typically put it onto renovating his house.  This year?  No renovation....no upgrades....no purchases from Lowes.....no carpentry work for Bobby Joe from across the street....and no paint purchase from the fancy paint shop downtown.

The secretary Wilma?  Well....she'd take home $2200 on her bonus.  It was going to pay for a new living couch and easy-chair.  The local furniture company would have made profits off the $2200, and the local county/city would have made 5.25 percent taxation revenue off the purchase.  They all lost on their "deal".

The engineer Karl?  Karl was set to buy a $17k bass-boat, and spend $1k on his wife's new fancy washing machine.  The bass-boat company lost a purchase, and Maytag lost a easy sale.

The logistics guy Monroe?  Well.....he was set to fly out to Thailand, visit some ladies and choose one to be his next wife (number three).  The $6k would have taken care of everything.  Now?  The Thai trip is pushed off for a year, and the Thai Airways folks lost $2k because of the lost bonus.  Oh, and some Thai gal lost her golden chance to marry up with a oddball character who drinks only Schultz beer and Kool Aid.

The crazy manager from the developmental group....Teddy?  He was set to pick up a $17k bonus, which would have paid for a truckload of stolen nuts and bolts from a Missouri middle-man.  The guy who stole the truckload of nuts and bolts now has to wait a month while hunting down some other guy to buy a hot load of nuts and bolts.

The four million?  Well....it went into the government's hands and pays for some government service, which none of the guys or gals mentioned....ever see.  All they know....is that they had a bonus, and now they don't.

The truth is....when you squeeze a millionaire for more money...he has to take it from somewhere.  And typically, if it's in the government hands....it doesn't mean that real people ever get any use out of it.

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