Comments on: Why You Shouldn’t Look to Washington to Solve Your Financial Problems

By: Kurt Henninger

Kurt Henninger — Tue, 28 Oct 2008 00:08:29 +0000

I completely agree about taking responsibility for your own business. After all, only you have your own interests at heart, not the government. Kurt Henningers last blog post..Multiply Your Checks In Network Marketing

By: Brad Shorr

Brad Shorr — Thu, 23 Oct 2008 12:49:12 +0000

Hi Dawud, It's definitely possible for entrepreneurs to thrive in a sinking economy. I figure my market share is a small fraction of 1%, so there's plenty of room to expand. Companies with large fixed cost structures have a tougher time adjusting to downturns and upturns. If you're small and nimble you can take advantage of any market change. All the government can do is redefine the rules of the game and redistribute the rewards. Brad Shorrs last blog post..How to Write a Business Letter

By: Mikael Rieck

Mikael Rieck — Thu, 23 Oct 2008 10:57:58 +0000

our corporate tax rates are â€œalready uncompetitive on a global basis, and itâ€™s costing us growth and jobs now

On the other hand your income taxes are far lower than most other industrialized countries and so are your fuel prices. I’m pretty sure that that’s pulling the equation the other way when we’re talking competition.

Mikael Riecks last blog post..Posts You Canâ€™t Afford To Miss

By: Bob Firestone

Bob Firestone — Thu, 23 Oct 2008 05:14:48 +0000

@ Dawud

I totally agree that you pay too much in taxes. The tax code is a mess. Judging buy your comment you are in the sweet spot for getting hit hard by the tax man. You are making enough to get into the top tax brackets but not enough to take advantage of the loopholes.
This is why conceptually I am in favor of a flat tax. Close the loopholes and the tax rates that honest people pay can come down.

By: Andee Sellman, One Sherpa

Andee Sellman, One Sherpa — Thu, 23 Oct 2008 04:36:46 +0000

Hi Dawud,
Love the tenor of your post and your really great points are applicable to those of us on the other side of the world in Australia.
The sooner we all realize that we have to be financially responsible for our businesses the better.
One thing I keep telling myself in troubled times is this:
“You don’t have to be the fastest gazelle…just don’t be the slowest”

Andee Sellman, One Sherpas last blog post..Webinar Thank You Redirect

By: Dawud Miracle

Dawud Miracle — Thu, 23 Oct 2008 03:57:21 +0000

@Bob Firestone – Great points, Bob, thanks.

The one thing I’d add is that I’ve formed a corporation around my single-person business. I don’t make $500K/year. Yet I am bothered by the tax level charged my business. How is it right to take nearly 40% of my business’ income?

And don’t even get me started on how much we’re all paying on our individual income tax.

Moreover, how many of us know the number of other taxes changed us other than income?

Dawud Miracles last blog post..Hate Selling? Well, Youâ€™re Doing It All The Time

By: Bob Firestone

Bob Firestone — Wed, 22 Oct 2008 23:18:13 +0000

On a national political level the financial crisis really highlights how financially illiterate our elected officials are. It is brutal listening to congress people on TV showing how little they understand about economics. And yet we trust these people to spend our tax dollars.

How do we fix the problem? Go back to college learn quantum physics, figure out time travel, build a time machine and go back 5 years and say “Banks, yeah you, don’t loan that person who only makes $45k a year $500k to buy a house. Trust me it will end badly!”
The real answer is an answer that if any official running for office said in public they would never have any chance of holding elected office ever again. The solution to the problem is
1. Time. Yeah it is going to suck big time. But time heals all wounds and financial crisis.
2. Higher interest rates. You want to take the log jam out of the credit markets? Raise rates to compensate the lenders for the risk they are taking. There are 2 sides to every transaction but everyone is only focused on the borrowers not the lenders. There is no shortage of people looking to borrow money to do stupid things.

About the corporate tax rate issue. I would sympathize with corporations a bit more if they paid the rate that was published. True on paper US corporations have one of the highest rates in the world. In reality what they actually pay is one of the lowest rates in the world. You can’t blame the corporations they are playing by the rules set forth by the government.
To quote one of my early mentors “If you are paying too much in taxes find a better accountant.”