Brad Wardell's views about technology, politics, religion, world affairs, and all sorts of politically incorrect topics.
Published on December 23, 2008 By Draginol In Politics

Obama joke

 

So my tax bill for April is starting to come together and it's looking pretty bad. I've been paying estimated taxes all year but we had a particularly good year this year and since many of our projects run under S-corporations, their profits get tied to my personal return (like most small business owners).

Our company has around 70 people in it. We'd have more but we literally can't fit anyone else in the building.  We're in the process of building out other parts of the building we own but of course, that requires a lot of money.

Some of these projects will have to be put off until mid next year or later depending on how well Demigod, Sins of a Solar Empire: Entrenchment, Object Desktop 2009, and ironically, how well our partner Dell does (buy Dell computers! ).

The reason they have to be put off is not that we don't have the capital to build out more of the building and hire more people, we do. It's that that money is going to go to the government instead in the form of income taxes -- almost $2 million of it in fact.

Now obviously, the government needs money to pay for vital services. I don't begrudge paying taxes on principle.  But too often, people forget where government money ultimately comes from. Worse, they are totally unaware of the consequences of taxation.

Taxes should always be kept as low as humanly possible because when you tax, you are literally taking from the people who are the most productive with capital and often giving it to the least.

Stardock, for instance, is based in the Detroit area of Michigan. So there is a certain sense of irony that the $2 million the government is taking from us is going to be given to the Auto companies and other companies have have absolutely demonstrated that they are terrible with capital.  Heck, our $2 million probably was used up in the hearings leading up to the vote on the bail out for the auto industry which Bush ultimately and unwisely decided to ignore.

So instead of using that $2 million to hire workers to build out another 8000 square feet so that we can hire an additional 24 more people this next year (to open more development teams to work on more projects for OEMs, gamers, and general consumers) we'll have to wait until we make enough money from the sales of our projects next year.  Way to go government...


Comments (Page 5)
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on Dec 27, 2008

You know, taltamir, I try diligently to ignore you, but since you addressed me directly, I will ask you one simple question. Have you ever, once, on any topic, disagreed with Draginol?

Hmmm....come to think about it, I've never seen the two together in the same room.   

on Dec 27, 2008

Draginol

Tova7comment 61

A clarification...
I do believe some sort of national priority list for tax revenue should be established.  It is ridiculous in this day and age that our infrastructure is crumbling...and getting worse.


I agree with you. Our roads here in Michigan are ridiculously bad.  And yet, we seem to have the money to fund bizarre studies, pay for penis enlargement with Medicare and hand out billions to incompotent wallstreet executives and auto companies.

 

O come on research into wooden arrows is always money well spent!@

on Dec 27, 2008

you know, this entire discussion made me think of this:

http://www.bigheadpress.com/eft?page=1

This is where we are headed.

You know, taltamir, I try diligently to ignore you, but since you addressed me directly, I will ask you one simple question.  Have you ever, once, on any topic, disagreed with Draginol?

Yes I have, on several occasions.

Hmmm....come to think about it, I've never seen the two together in the same room.

uh oh, he is on to me... i better get a hologram!

on Dec 27, 2008

I have been blogging here for over four years and constantly complaining "America needs to stop sending money to countries that hate us and start fixing our infrastructure" Our dams and bridges are in terrible shape, our roadways stink, our elictrical grids are over worked and out of date, we have homeless combat vets in the richest country on the planet, this is criminal in my opinion.

Need I go on?

on Dec 27, 2008

The real question here is one that can't really be answered...'Would that 2 million do more good if it were used to provide 24 new jobs at Stardock or ....(insert random government expenditure here)....?

In my mind it boils down to this. 

The gov has enough of our money.  It needs to learn to budget what it has.

Anything above necessity (to keep the country united and safe) is robbery imo.

on Dec 27, 2008

the answer is deceptively obvious. a percentage of that 2 mil will go to useless wasteful stuff, a percentage will go to paying for good government programs.

on Dec 27, 2008


The real question here is one that can't really be answered...'Would that 2 million do more good if it were used to provide 24 new jobs at Stardock or ....(insert random government expenditure here)....?
In my mind it boils down to this. 

The gov has enough of our money.  It needs to learn to budget what it has.

Anything above necessity (to keep the country united and safe) is robbery imo.

 

^ we have a winner. Ive been called so many names for opposing taxes, when it boils down to the fact, im not agenst taxes , just the way its spent. There is so much garbage a waisted spending that its not really fair to take MORE money and spend it foolishly. Anything with GOVERNMENT attached to it pretty much means that it will cost 2x as much to get done than it should.

on Dec 27, 2008

Government waste of taxpayers money has become an art form for both parties, it's like some kind of game where they both get to stick "earmarks" on important bills at the last second so almost no one knows about it. Billions are wasted on Earmarks for bullshit to make politicians more electable. When all is said and done politicians look out for themselves first and foremost with an eye on continued suckling at the public tit, then looking out for their allies, then they if they have time they look out for their constituents which make up a very small percentage of the population.

on Dec 27, 2008

So you're not looking to maximise your profit then, but rather have inserted some charitable elements into it (hiring people who lose you money) if I'm reading that right? Just that I can't see any other way for you to maintain your salary at it's current level after a tax rise by firing people (all else equal), since the tax will be on a % of your profits, and hence firing someone who was making a profit before the tax rise would mean firing someone who was making a profit for you (just not as much of it) after the tax rise.

A business is one form of investment. 

Like anyone else, if my available capital is limited more than I anticipate, I will cut my spending in various areas like discretionary spending, long-term investment, etc.

When a business owner hires employees or builds out their building, that is part of a long-term investment. It isn't charity.  I'm not going to sell my house or liquidate my assets in order to invest in long-term investments anymore than someone else is going to sell their house to purchase a CD (bank CD).

In fact, from the taxes, I liquidated a few of my investments early to help pay for them even though those investments would generate a long-term profit.

So no, it has nothing to do with charity. It has to do with managing capital, timing, and investments.

on Dec 27, 2008

This whole debate reminds me of Atlas Shrugged.  It's not what I would call a great piece of literature, and Ayn Rand's objectivism isn't what I would call a sound philosophy, but it does amply demonstrate what socialism in the US would look like.

I still keep thinking about how after Obama got elected, people were shown on the news talking about how they "wouldn't have to worry about their mortgages anymore" and how they "wouldn't have to worry about filling their gas tank anymore."  It makes me sick, honestly.  People clearly have no idea how the economy works.

As Brad has been saying, when the business owners are hit, it isn't the business owners who suffer.  When some idiot sues McDonalds because she (and it was a she, I'm not being sexist) spilled coffee on herself, McDonalds isn't paying for it.

Then there is the matter of incentive, which was brought up earlier:

taltamir
You know what, I just thought of something, when obama makes due on his promises of wealth redistribution and other uses for "the government's money", the only remaining incestive to work rather then being a leech IS luxury items... Food, housing, even healthcare are all provided... so why work?Heck you can just borrow heavily and than get handouts for that too. but working and producing allows you to buy MORE fun stuff.

This is exactly why anyone who voted for Obama made an unwise decision, to say the least.  This is why socialism has never worked before, and why it will never work.  Hopefully Obama won't actually be able to fulfill all of his promises, but considering that the Democrats have a majority in both the House and Senate now...

At least if he does fulfill all of his promises, the roads in Michigan will be better.

on Dec 27, 2008

IQofSpam
At least if he does fulfill all of his promises, the roads in Michigan will be better.

For the first year, then the money will run out cause the economy collapsed, and they will be left to deteriorate to dust.

on Dec 27, 2008

Hey, try to see a silver lining, hmm? 

on Dec 28, 2008

California is the Fifth largest economy in the world, and it's highways system is the crappiest I have ever seen, pot holes abound, every year there is a fight over the budget for the state, I keep wondering where all the tax money goes as there is always a shortage when it comes to schools, levees and highway repair. But the state legislature never has a problem voting themselves raises, and Caltrans which does most of the government work looks like this, one guy working, one guy sitting in a piece of heavy machinery, and 4 guys scratching their balls doing nothing.

on Dec 28, 2008

Moderateman
California is the Fifth largest economy in the world, and it's highways system is the crappiest I have ever seen, pot holes abound, every year there is a fight over the budget for the state, I keep wondering where all the tax money goes as there is always a shortage when it comes to schools, levees and highway repair. But the state legislature never has a problem voting themselves raises, and Caltrans which does most of the government work looks like this, one guy working, one guy sitting in a piece of heavy machinery, and 4 guys scratching their balls doing nothing.

 

Yeah thankfully the WI roads are good but we are one of the higer taxed states too... and in fact this state too is suffering from from a budget shortfall too... because of the homes that are being forclosed and there is now less people to pay those types of taxes.... there is never a surplus in this state and they send every last red cent they can get.

 

I do find you saying what you did about City/county workers.... is so true

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