I want to be your partner. Here’s the deal.
You put up all the capital and I put in nothing. You provide all the labor and I provide nothing. I will tell you the minimum wage you can pay your employees. From the wages they earn, I will collect a percentage.
You will have to comply with the edicts I make on all aspects of our business from 1) the types of products you can sell; 2) the materials that are to be used and, 3) how to dispose of the waste. I have laws and regulations that you will need to follow covering everything from plumbing to lighting and more.
Every year you will pay me a percentage of your sales regardless of whether you make money or not. If you don’t pay me I will fine you and, if necessary have the authority to imprison you. From time to time, I have the right to raise or lower the amount you have to pay me.
Should you leave or sell the business, I automatically become the partner to whomever you sell the business. If we are successful and sell the business at a profit, I will charge you a fee (call it a capital gain fee) on the price of the sale. Sound fair? Ready to deal? If you already own a business you know who I am.
I’m Uncle Sam.
Sound ludicrous, doesn’t it? And people wonder why we have close to 100 million people out of the labor force.
Bernie Sanders is leading the charge to solve this malaise by offering more “free stuff.” How does he plan to get and pay for it all? He’s telling you the answer in advance: from his business partners, of course, who are going to be less than delighted to fork even more of their money to their partner (a/k/a the Federal Government by way of the IRS).
The fact is that neither candidate on the Democrat Party sounds as if he/she truly understands how business works; therefore, they continue to ask for more and more money from private business owners.
Currently, the U.S. has the highest corporate tax rate in the world. Because of this, the largest and smartest companies shield their revenues and assets from the U.S government by creating offshore entities. They then book their revenues through these stand alone enterprises. Such maneuvering shields them from having to pay U.S. taxes. So, the tax burden then gets shouldered by smaller and smaller enterprises who are unable to get the same treatment, or concoct the same schemes with government acquiescence, that larger companies can.
It is easy for a multinational corporation such as Google to move much of its revenues off shore since much of their transactions are global. But the local restaurant, whose customers are within a 100 mile radius of their location, are unable to do the same. The IRS would never allow a local entity to park its assets offshore.
So, the freebies that Bernie Sanders plans to give away will come from this already overburdened business class.
It is easy to see by the demands and promises that Bernie Sanders is making that he has no real understanding of, or connection to, the business community and the Herculean efforts small business owners make to succeed at their ventures. This disconnect between big government and the small business owner, and the adverse effects it has on the nation as a whole, can be understood by an example within the medical field.
When I was younger and played sports, I had many injuries that required extensive physical therapy. I had several shoulder injuries as a result of many years on Aikido mats. This happened because when I threw my opponents to the ground, I failed to connect my torso to my shoulders. As a result, my shoulder would become stressed. Instead of moving in unison with my torso, the shoulder moved separately and bore the entire stress.
When I then needed physical therapy, I encountered physically healthy people who had been recommended to physical therapy by their mental health practitioners. They were directed to physical therapy in order to connect the body back with the mind. Most of these were white collar professionals who had long stopped using their body properly and suffered mental issues. The physical therapy was a way to connect the body back with the mind.
This whole notion of working the (literal and figurative) body and mind together for matters of wellness and wholeness applies to everything we do…from physical injury to business to politics: the same principles apply.
The Democrat candidates for President are promising more free stuff without any idea of who pays for it. This disconnect is causing turmoil and sickness to the body politic. Over the last few weeks, there has been increasing aggression at political events and agitation by the citizenry over fear and confusion for the country’s political and economic future. The business class is upset due to its declining margins as well as the demands of the political class for more and more money. Instead of working together to grow a larger economy where all can benefit, business owners know that the proposals from Bernie Sanders and Hillary Clinton will, to the contrary, kill their businesses once and for all.
Bernie Sanders and Hillary Clinton need more of a connection to small business owners and the realities of operating a profitable enterprise. If they had that connection, they’d never be touting more free stuff. Then again, if the didn’t tout more free stuff they’d never be the top two candidates for the Democrat Party’s nominee.
Now there’s logic and a very good reason to vote Republican… if case you need one.