Redneck's Wife
Thursday, November 13, 2008
Wednesday, November 05, 2008
Economic ramblings inspired by this election
Well, there has been some discussion with my friends on Facebook about economics recently, and some consternation among some that I am not wild about Obama. So here is my response to one of them (Matt) specifically. I posted it here because it's too long to go in the comment thread there. To see the previous discussion, you can go to my Facebook page. Not sure how to link that from here, but look for Samia Perkins.
Okay, so first off, that’s great that you are going to do more study on this. I’d like to hear what you learn, and how it influences your perspective. However, I don’t think you need to have a degree in economics or to do special study in order to have a discussion about these issues. We have a family budget and run our own businesses. That gives quite enough of an education to understand basic economics.
So about small businesses. The majority of small businesses in this country are not considered small by their earnings, but by their employee base. Obama said in the debates that 95% of small businesses would not be subject to the tax increase, but if they are sole proprietorships, the gross income of the business is taxed as the gross income of the proprietor. This was the case with the guitar shop until a few years ago. So some, possibly many businesses could be subject to the tax increase. Yes, they may be able to avoid this by incorporating, but that just furthers the point. If taxes are prohibitive, people will do whatever they can to avoid paying them. If there is a loophole, they will find it.
Another point on tax increases: There have been 3 major cuts in the 20th century, Calvin Coolidge, after WWI was over, cut spending back to pre war levels; JFK; and Reagan. All of these led to prosperity in the country, and actual increases in IRS revenue. This is actually called the Laffer curve: http://en.wikipedia.org/wiki/Laffer_curve
There are several reasons for this. Business owners provide jobs, and if revenue is cut, they will cut their employee base, or cut wages, so either more people are dependent on unemployment (taking govt money), or they are not paying as much in taxes.
Once a top income earner has more money, they will invest in business, grow their employee base, or give employees raises, both of these increasing govt revenue. Disposable income is also spent on various things that also support the economy, home improvement, luxuries ( hey, anyone want a custom ordered guitar? How about an amp? Guitar lessons for your kid), etc…
Government gets some of that, too, via sales taxes, and then taxing the earnings of the companies that people are buying from.
If taxes go up, people will have to cut back some spending to make up for that, so maybe they will decide not to give their kids lessons, or not buy that guitar, or not do that landscaping project. Or maybe not write that check to a charity.
If you punish an activity, it will decrease. Raising taxes is in some ways punishing innovation and removing the impetus to spend.
So what does it cost a millionaire to get to that point? They worked hard and took risks to get there, so why should the government take more of what they earn? Why would you put in the work and the risk unless it will benefit you?
I mean, I am a good example. I don’t make anywhere near $250K, but I am an independent contractor. So I have to pay my own percentage of taxes, along with what an employer would pay. So I will pay anywhere from 30 to 33% of my income in taxes. And I am a working mom with 2 kids, just barely getting by, living paycheck to paycheck. And I work my a** off, and pay for my own health insurance. So why should I have to pay so much to the government?
If electing Obama is about fairness, then here is a fair proposal: decide an income level that is tax exempt, maybe $25,000, could be more or less. Then everyone else is taxed at a flat rate, maybe 15 to 18%. This would be fair to everyone, and would really stimulate the economy and lead to prosperity. Actually, many of the former Soviet nations have a system like this.
This is one of the many reasons why I will never support Obama. There are just fundamental differences in our belief systems. We could also get into the fact that he thinks health care is a fundamental right and that the government should provide it for people, but that is a whole other discussion.
If you've read this far, thanks!! ¶ 9:53 PM 1 comments
Well, there has been some discussion with my friends on Facebook about economics recently, and some consternation among some that I am not wild about Obama. So here is my response to one of them (Matt) specifically. I posted it here because it's too long to go in the comment thread there. To see the previous discussion, you can go to my Facebook page. Not sure how to link that from here, but look for Samia Perkins.
Okay, so first off, that’s great that you are going to do more study on this. I’d like to hear what you learn, and how it influences your perspective. However, I don’t think you need to have a degree in economics or to do special study in order to have a discussion about these issues. We have a family budget and run our own businesses. That gives quite enough of an education to understand basic economics.
So about small businesses. The majority of small businesses in this country are not considered small by their earnings, but by their employee base. Obama said in the debates that 95% of small businesses would not be subject to the tax increase, but if they are sole proprietorships, the gross income of the business is taxed as the gross income of the proprietor. This was the case with the guitar shop until a few years ago. So some, possibly many businesses could be subject to the tax increase. Yes, they may be able to avoid this by incorporating, but that just furthers the point. If taxes are prohibitive, people will do whatever they can to avoid paying them. If there is a loophole, they will find it.
Another point on tax increases: There have been 3 major cuts in the 20th century, Calvin Coolidge, after WWI was over, cut spending back to pre war levels; JFK; and Reagan. All of these led to prosperity in the country, and actual increases in IRS revenue. This is actually called the Laffer curve: http://en.wikipedia.org/wiki/Laffer_curve
There are several reasons for this. Business owners provide jobs, and if revenue is cut, they will cut their employee base, or cut wages, so either more people are dependent on unemployment (taking govt money), or they are not paying as much in taxes.
Once a top income earner has more money, they will invest in business, grow their employee base, or give employees raises, both of these increasing govt revenue. Disposable income is also spent on various things that also support the economy, home improvement, luxuries ( hey, anyone want a custom ordered guitar? How about an amp? Guitar lessons for your kid), etc…
Government gets some of that, too, via sales taxes, and then taxing the earnings of the companies that people are buying from.
If taxes go up, people will have to cut back some spending to make up for that, so maybe they will decide not to give their kids lessons, or not buy that guitar, or not do that landscaping project. Or maybe not write that check to a charity.
If you punish an activity, it will decrease. Raising taxes is in some ways punishing innovation and removing the impetus to spend.
So what does it cost a millionaire to get to that point? They worked hard and took risks to get there, so why should the government take more of what they earn? Why would you put in the work and the risk unless it will benefit you?
I mean, I am a good example. I don’t make anywhere near $250K, but I am an independent contractor. So I have to pay my own percentage of taxes, along with what an employer would pay. So I will pay anywhere from 30 to 33% of my income in taxes. And I am a working mom with 2 kids, just barely getting by, living paycheck to paycheck. And I work my a** off, and pay for my own health insurance. So why should I have to pay so much to the government?
If electing Obama is about fairness, then here is a fair proposal: decide an income level that is tax exempt, maybe $25,000, could be more or less. Then everyone else is taxed at a flat rate, maybe 15 to 18%. This would be fair to everyone, and would really stimulate the economy and lead to prosperity. Actually, many of the former Soviet nations have a system like this.
This is one of the many reasons why I will never support Obama. There are just fundamental differences in our belief systems. We could also get into the fact that he thinks health care is a fundamental right and that the government should provide it for people, but that is a whole other discussion.
If you've read this far, thanks!! ¶ 9:53 PM 1 comments
Friday, September 22, 2006
Redneck baby!
These are so freakin' cute, I just have to share:
These are so freakin' cute, I just have to share:
Erick was doing yardwork, and this is his "yardwork and camping" hat.
¶ 6:36 AM 2 comments
Thursday, September 07, 2006
Running a Race, or the joys of working from home
First of all, I shouldn't even be blogging right now, because I have SO MUCH TO DO!
But I have had all of these posts rattling around in my head, and I want to get at least one of them out.
My daughter Cary is now 10 months old! She is becoming less and less like a baby (quiet, small, relatively clean, lays on the floor), and more and more like a toddler (loud, filthy, constantly hungry, gets into the most amazing places she never went before). The bath at the end of the day used to be just a luxury to help her relax and go to sleep. Now when I plop her in there, she REALLY needs it! Last night she was covered in flour, which was covering dirt and bananas (don't ask).
I'm fortunate enough to have two moms that live near me with babies the same age as Cary. They are also trying to start their own businesses and work from home. It's great to have that support system. One of them, Lisa, is responsible for the quote above.
Before I had Cary, I thought that working from home sounded so great. And it is, in a way. It's great to be home with Cary. It's great to not have a boss, or sit in a cubicle. It's great to like what I do. But it's also very hard. I don't work (much) when Cary is awake, because it just doesn't work, plus, I want to be spending time with her. So I get up early, and work during her naps. And I'm tired.
One crazier than usual morning looked like this:
I was trying to get Cary to take a nap. She was in her room, and NOT going to sleep. This was already the third try, and I was about to give up. I was talking to a really stupid technical support guy from our credit card processing company. You know the kind, they don't know the answer to your question, but they keep you on the phone for an hour before they tell you that. I'm trying to hurry him up, because I have to pick up my mom from the airport. Cary starts crying. Fortunately, Erick is home, and he gets her. He brings her out, and she is still crying. The dumb tech support guy is still talking. The cat throws up on the floor. I clean it up while still on the phone.
I check, and my mom's flight is early.
Cary is crying.
I tell the tech support guy I have to go.
He ignores me and keeps talking.
I really have to go.
I finally get off the phone, and Cary (who is now okay) and I head to the airport. The question I called about is still not resolved. I have people coming over to get haircuts in an hour. I have not showered.
Running a race. ¶ 5:47 AM 2 comments
"Do you ever feel like you're running a race? That you wake up in the morning, and you just start running, and you don't stop until you go to sleep, then wake up and have to do it all over again?"
First of all, I shouldn't even be blogging right now, because I have SO MUCH TO DO!
But I have had all of these posts rattling around in my head, and I want to get at least one of them out.
My daughter Cary is now 10 months old! She is becoming less and less like a baby (quiet, small, relatively clean, lays on the floor), and more and more like a toddler (loud, filthy, constantly hungry, gets into the most amazing places she never went before). The bath at the end of the day used to be just a luxury to help her relax and go to sleep. Now when I plop her in there, she REALLY needs it! Last night she was covered in flour, which was covering dirt and bananas (don't ask).
I'm fortunate enough to have two moms that live near me with babies the same age as Cary. They are also trying to start their own businesses and work from home. It's great to have that support system. One of them, Lisa, is responsible for the quote above.
Before I had Cary, I thought that working from home sounded so great. And it is, in a way. It's great to be home with Cary. It's great to not have a boss, or sit in a cubicle. It's great to like what I do. But it's also very hard. I don't work (much) when Cary is awake, because it just doesn't work, plus, I want to be spending time with her. So I get up early, and work during her naps. And I'm tired.
One crazier than usual morning looked like this:
I was trying to get Cary to take a nap. She was in her room, and NOT going to sleep. This was already the third try, and I was about to give up. I was talking to a really stupid technical support guy from our credit card processing company. You know the kind, they don't know the answer to your question, but they keep you on the phone for an hour before they tell you that. I'm trying to hurry him up, because I have to pick up my mom from the airport. Cary starts crying. Fortunately, Erick is home, and he gets her. He brings her out, and she is still crying. The dumb tech support guy is still talking. The cat throws up on the floor. I clean it up while still on the phone.
I check, and my mom's flight is early.
Cary is crying.
I tell the tech support guy I have to go.
He ignores me and keeps talking.
I really have to go.
I finally get off the phone, and Cary (who is now okay) and I head to the airport. The question I called about is still not resolved. I have people coming over to get haircuts in an hour. I have not showered.
Running a race. ¶ 5:47 AM 2 comments
Saturday, July 15, 2006
Back yard transformation
So check this out:
So check this out:
We went from this:
To this:
To this:
So stuff still needs to grow in, but, big difference, huh? Look at the size of the zuchinni plants, too! Those suckers are producing like 5 zuchinni a day! Um, why did I plant 4 of them?
¶ 10:24 PM 6 comments
Doing the job most Americans won't do, Part Deux
Busting up cement:
Woman, get me a beer!
See all that cement in the second pic? It's all gone now, he broke all of it up with a sledge hammer!
Yup!
¶ 10:07 PM 1 comments
Big girl!
Just look at this:
Just look at this:
She is starting to pull herself up! With her hair getting long, and with her standing up, I'm feeling like she's almost a toddler. **SOB**
And here is another one (although I had to rescue her soon after this):
And also - Graham crackers!
Thursday, July 13, 2006
Tragedy!
Don't worry, not a real one.
Cary and I were out for a walk today, and I had a Netflix I was going to mail. Oh, I should mention, I had her in a wrap, similar to this:
Don't worry, not a real one.
Cary and I were out for a walk today, and I had a Netflix I was going to mail. Oh, I should mention, I had her in a wrap, similar to this:
Anyway, she grabbed the envelope, and started chewing on it. I let her, for a while. But then we got to the mailbox. Oh, the horror! I had to take the Netflix away. The screaming, the crying, the tears! Very, very sad.
This separation anxiety is becoming more common. I have to be very careful to have something ready to swap out when I take something away. Hard to beleive that this little baby who used to not notice her toys, or not really care about them, suddenly feels that they are the most fascinating things in the universe!
Tuesday, July 11, 2006
Long time no blog
If anyone is still checking my blog, I'm REALLY sorry!
I have just been so consumed with other things lately, that this has not been happening. I have about 40 interesting posts in my head, so maybe one day I will get them up. Meanwhile, here are some random pics of Cary and family.
If anyone is still checking my blog, I'm REALLY sorry!
I have just been so consumed with other things lately, that this has not been happening. I have about 40 interesting posts in my head, so maybe one day I will get them up. Meanwhile, here are some random pics of Cary and family.
My brother in law, Josh, with Cary on the 4th of July
Erick, Cary and I
Happy girl!
