The next few days I will be traveling and speaking to a very large group of small business owners. These businesses all have to carry cash reserves of over $200,000 into the next year in order to cover payroll, etc during their slow season. (They are associated with tourism and therefore their business is mostly cyclical with 4-5 months of tourists and up to 6 months of slow or no season)
In the Obama tax plan, businesses are taxed at the new higher rate when they reach $200,000 profit. So taking this into consideration, I will be presenting how both tax plans work for these businesses.
The Obama Plan
In a nutshell, with a Federal Tax of 60%, a state tax of almost 10%, and local tourism taxes they will pay almost 80% in taxes on that money they NEED to carry them through the off season. Don’t forget they are also paying employment taxes, insurances for flood, fire, etc, unemployment taxes, health insurance, etc.
Basically, you can see the immediate demise of innkeepers all across the country. Some innkeepers are looking at changing their vacation property to monthly rentals to at least escape the tourism tax.
Don’t plan on any vacations soon. And that “Rat” Mickey Mouse SHOULD vote for MCCAIN-PALIN this year.
These business owners are NOT CEOs as Obama claims McCain is representing. Obama just doesn’t get it. During the next several days, I will be reporting from key battleground states and getting out Joe-the-Plumbers message all across the country. What will you be doing to support McCain-Palin?