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 6)
10 PagesFirst 4 5 6 7 8  Last
on Dec 28, 2008

Draginol writes:

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...

Yours is just one of millions of tax stories that will be told......our present tax system needs to be completely re-vamped...something along the line of Steve Forbe's flat tax.  IMO, it's going to get worse....all taxpayers are going to feel the pain.

Draginol posts #59

I like capitalism. I believe it creates a better world.

Capitalism can't be mixed with Socialism....its' a big no-no that's getting us in trouble. Socialism isn't the "fix"...but irresponsible people love and demand the handout and liberals (both dems and repubs) either for power or votes can't say no.    

The bailouts are all part of Socialism....Fannie Mae and Freedie Mac were quasi government programs...now totally owned and operated by the government and we know the governement is neither proficient or efficient at anything it runs.  

on Dec 28, 2008

we know the governement is neither proficient or efficient at anything it runs

There may be one exception to that - the FAA's medical certification division.  Remarkably well-run.

on Dec 28, 2008

I'm in favor of killing the income tax and all of those other random ones in favor of a national sales tax.  Sure, paying another 6 to 8 cents on each dollar you spend would be annoying, but at least it encourages people to spend their money a little more wisely.  Besides, I've heard that about 40% of your income goes toward some sort of tax, the majority being income tax.  That's a lot of money which you would suddenly have to spend on things, like cars, for instance.  Not only that, but it would encourage the government to spend its money more wisely as well, since they don't have a wasteful lot of it to just hand to anyone they want.

on Dec 28, 2008

IQofSpam
I'm in favor of killing the income tax and all of those other random ones in favor of a national sales tax.  Sure, paying another 6 to 8 cents on each dollar you spend would be annoying, but at least it encourages people to spend their money a little more wisely.  Besides, I've heard that about 40% of your income goes toward some sort of tax, the majority being income tax.  That's a lot of money which you would suddenly have to spend on things, like cars, for instance.  Not only that, but it would encourage the government to spend its money more wisely as well, since they don't have a wasteful lot of it to just hand to anyone they want.

 

Yeah i love how first you get taxed on the money you earn from work but then when you go out and buy non food items like gas... ect ect you get taxed on that too... THEN... i love how when you buy a used car you pay TAXES on something THAT WAS ALREADY TAXED before... its an endless cirlce of taxes and yet the gov STILL cant manage to budget with all this income coming in

on Dec 29, 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.

Yes. That is exactly what I thought, to the word!

(I guess the book would have been better if Ayn Rand hadn't thought of herself as a great love story author, which she was not.)

 

 

on Dec 29, 2008

BTW, Brad knows as well as I that dollars invested in business reduce his tax burden. Even sole proprieters know that they are taxed only on dollars after the cost of doing business is deducted.

NO, they do not.  Companies are taxed on profit.  WHich means less to re-invest.  I dont know where you get your information from, but one thing is for certain, it is not the IRS code.

on Dec 29, 2008

I agree with you. Our roads here in Michigan are ridiculously bad.

Back in the 80s, I had to go to Detroit on a business trip - they sucked then too!

If the government sends you a letter saying that they may well give you $10k, would you say no,

Bad analogy.  The government only gives to those who do not pay.  The rest just get a reduction in the confiscation rate.  A better question - if a robber says he will leave you $10k of your money instead of taking it all....

Ok, that is not accurate either, but it is as accurate as the quoted statement.

 

on Dec 29, 2008

[quote]

Of the three methods, I prefer the raid and sack option, but we're never going to do that because we're too in love with wearing the white hat.

[/quote

Go ahead and do it. The world accuses you of it anyway.

 

Our roads here in Michigan are ridiculously bad.

Ironically, roads in Iraq are very good.

http://gallery.me.com/ajbrehm#100028/DSCN7644&bgcolor=black

 

on Dec 29, 2008

little-whip

Not only that, but it would encourage the government to spend its money more wisely as well, since they don't have a wasteful lot of it to just hand to anyone they want.
Reality check:  The government will get money whenever the government wants money, end of story.  They can raise taxes, print more, or raid and sack some other nation for their wealth, as we should have done in Iraq.

Of the three methods, I prefer the raid and sack option, but we're never going to do that because we're too in love with wearing the white hat.

That leaves either raising taxes or printing more money.  Printing more money makes everyone's money less valuable, so nix that.

That leaves raising taxes.  Accept reality, folks, it's going to happen despite all your kicking and screaming.

Since taxes *are* going to be raised, the only legitimate question remaining is 'from who?'

The poor pay little to no tax already.  That leaves the middle class and the wealthy.

I'm middle class, so nix that, our back is breaking already.

If they wanna tax the rich, how could I not be ok with that?  Better them than me, lol.

Having said that, I'll add the following...

In a perfect world, our government would be compelled to spend within its budget, but without a Constitutional amendment forcing the issue, it aint gonna happen.  To expect our ignorant and wasteful public servants to do so voluntarily is laughable, nothing but a pie in the sky wish. 

 

 

See this is where your flawed little... you have a "me" metality. They should raise taxes on the rich because its not you so its okay?

on Dec 29, 2008

There may be one exception to that - the FAA's medical certification division. Remarkably well-run.

Ha, I'll concede...it's true..... there are a few exceptions!

on Dec 29, 2008

LW POSTS:

In a perfect world, our government would be compelled to spend within its budget, but without a Constitutional amendment forcing the issue, it aint gonna happen. To expect our ignorant and wasteful public servants to do so voluntarily is laughable, nothing but a pie in the sky wish.

Hmmm.....Aren't there some governors and state legislatures who are running their state governments with balanced budgets and not in the red?

As far as the federal government is concerned, all  it takes is will power of the people...we hold the power and we should hold every one of our Congressmen accountable....if they spend like there is no tomorrow or like bottomless pits, then the ballot box is where the issue is forced.   

on Dec 29, 2008

Ha, I'll concede...it's true..... there are a few exceptions!

It's the only exception, mind you.

on Dec 29, 2008

little-whip

They should raise taxes on the rich because its not you so its okay?
Yes.

The middle-class has been squeezed just about dry, I think.  It's time WE got a break.  Everyone else gets breaks, the rich, the uber rich, the poor, the destitute, and even the merely 'low income.'

Historically it's always been the middle class that pays for the tax breaks of those above and below them on the economic ladder, and I'd like to see that change.

You're free to buy all the sob stories the uber-wealthy have to sell you, but that doesn't mean I have to buy them anymore.

 

So your solution is to just take more money becuase they have more than you. Brilliant.

 

Why dont you support balance over taking more money? No one should get taxed more . We get taxed enough the way it is. You say poor people dont pay taxes... maybe at the end of the year, but poor people still consume things and buy non food items... and in fact are more likely to buy the TV;s and such which are taxed. So just because they dont pay income tax at the end of the year does not mean that they dont pay taxes.

 

I refuse to give on raising taxes on the rich let alone anyone else UNTILL the government can show some intelegence in balancing the budget .... and not for only one year... they need to show a patern.

Scare tatics of " OMG WHEN HAVE TO CUT SCHOOL LDKHLDKG UNLESS WE RAISE TAXES!" are geting old and to be honest... I can think of many things the gov can cut in order to save bundles...

on Dec 29, 2008

lulapilgrim
LW POSTS:
In a perfect world, our government would be compelled to spend within its budget, but without a Constitutional amendment forcing the issue, it aint gonna happen. To expect our ignorant and wasteful public servants to do so voluntarily is laughable, nothing but a pie in the sky wish.
Hmmm.....Aren't there some governors and state legislatures who are running their state governments with balanced budgets and not in the red?

As far as the federal government is concerned, all  it takes is will power of the people...we hold the power and we should hold every one of our Congressmen accountable....if they spend like there is no tomorrow or like bottomless pits, then the ballot box is where the issue is forced.   

 

The problem is people are tooo stupid to vote them out or the other person running are just as stupid as the current person in there. I mean if you got a person that is up for re election that spend like no tomarrow yet you got a person running agenst him whos veiws are so opposite of yours... who would you vote for? its not like you have 2 people from the same party running for the same thing when one of them is an incubent

on Dec 29, 2008

The middle-class has been squeezed just about dry, I think.  It's time WE got a break.  Everyone else gets breaks, the rich, the uber rich, the poor, the destitute, and even the merely 'low income.'

How exactly has the middle-class been squeezed just about dry? 

The middle class barely pay income taxes at this point. Go ahead, look at your last year's tax return and see just how much in federal income taxes you actually ended up paying in. 

..

Also, to correct the person who said that profit is the same as what is left after investing in your business, no, they're not the same.  You cannot deduct assets from your "profits" and the government defines assets extremely loosely.  I cannot, for instance, deduct the build out I'm doing on our office because I am creating an asset. In fact, my property taxes will rise as a result.

10 PagesFirst 4 5 6 7 8  Last