Will Obama help or hurt Fractionals

[skyaddict]

Very well said, G100 driver- and great point about Slick (who deserves laurels for his not pisxing away the tech boom surplus) inheriting a Goldilocks economy from Bush I. A tax cut without a spending cut is just a tax deferred (plus interest) onto future generations. Ditto for a spending increase without a tax increase.

 

[blueridge71]

Will Obama hurt or help? That question was like a nice slow pitch right over the plate.

When taxes are increased on the rich, the rich obviously have less money to spend on items like shares of our corporate jets. Perhaps, they will put more of their money into tax shelters or foreign investments where tax laws are more favorable.

If a rich businessman doesn’t get to buy his jet, who is hurt? The most obvious answer is my company and its employees. If my company doesn’t sell a jet share, then the salesman does not get a commission, additional pilots are not hired, and jobs for support employees such as dispatchers, schedulers, maintenance coordinators, and administrative workers are not created.

Equally obvious is the loss to the aircraft manufacturer. Manufacturing jobs may be lost as aircraft orders dwindle. This also applies to subcontractors who work sheet metal, electricians who build avionics, craftsmen who work wood and leather for aircraft interiors, and the manufacturers of the thousands of parts that are assembled together to create a working airplane.

The damage does not stop there, however. The rich guy will not fly his jet around the country. When he does not visit local airports, local businesses called Fixed Base Operators (FBOs) don’t sell him fuel. Local businesses do not sell him catered food for his trips. Local aircraft mechanics miss out on the opportunity to work on the airplane. Local and state governments lose tax revenue from the lost fuel sales and airport fees.

Because the non-owner may never visit many places that he would otherwise see, other local businesses will also lose revenue. Cars will not be rented or hired, hotel rooms will not be rented, and restaurants will not be patronized. Tourism will suffer as museums and other tourist attractions are not visited.

Because many trips on private jets are business trips and not pleasure trips, investment in local businesses may suffer also, especially in areas not served by airlines. A deal that would be made in person may not be consummated over the telephone. Difficulty in obtaining outside investment may cause local businesses to stagnate and not create new jobs, causing small towns to go into further decline.

The jobs that are lost or are never created are not the end. As each person loses his job or cannot find a new one, their troubles spread to others. As one person runs out of money, his inability to pay his bills or buy new products affects other people and businesses down the line. Businesses are forced to write off bad debt that they could have collected from an employed person. Sales fall because unemployed workers have less money to spend, causing businesses to cut back and hire fewer workers.

Ironically, as the economy slows in the aftermath of tax increases, the government takes in less tax revenue. This is because the slowing economy is shrinking. Revenues for businesses and incomes for individuals are falling, so a tax, even at a higher percentage, yields a smaller total revenue.

The good news is that, as we learn from the past, the opposite is also true. If we reduce taxes, then the economy grows and businesses thrive. When business thrives, jobs are created and incomes rise. This, in turn, leads to higher tax revenues for the government in spite of the fact that the government takes a smaller percentage of each American’s paycheck. This process has worked four times in the past hundred years during the 1920s (under Secretary of the Treasury Andrew Mellon), the 1960s (President Kennedy), the 1980s (President Reagan), and the 2000s (President George W. Bush).

Additionally, President Bush’s tax cuts had the effect of shifting more of the tax burden to upper income taxpayers. The top one percent of income earners currently pays about 33% of all income taxes versus 32% before. This is because the tax rates were lowered for Americans of all tax brackets with lower income tax payers realizing a larger percentage decrease than higher income taxpayers. The top 50% of income earners pay 96% of income taxes. On the other hand, the bottom 50% of income earners pay only about 3% of income taxes.

As President John F. Kennedy said, “a rising tide lifts all boats.” Tax increases, even on only one segment of the country, slow the economy and take money out the pockets of all Americans, even those not taxed directly. On the other hand, a tax code that allows Americans to keep more of what they earn helps us all.

 

[blueridge71]

In 1976 there was similar sentiment about Republicans, and rightfully so. We ended up with Jimmy Carter, an embarrasment in the Iran hostage crisis, terrible inflation, and 18% interest rates.

I was thumbing through a copy of Newsweek from the week of the Democratic convention and saw a blurb in an Obama article that actually said that the President that he was most similar to was Jimmy Carter. I'm not sure if they meant this to be a compliment, but to hear it from a left wing source (as opposed a radio talk show host) lends credence to the idea. Scary.

 

[blueridge71]

Actually, I think the one upside of Obama becoming president is that it will hopefully shut the mouths of Al Sharpton, Jesse Jackson, and Spike Lee and their incessant rants about what a racist country this is. With a black man in the White House, you'd look pretty stupid to continue arguing that the United States is a racist nation.

Don't confuse them with the facts. It isn't about equaity. It's about power.

Look at Sarah Palin. She is a woman and is easily the most qualified person on either ticket. Obama and Biden have no experience outside of legislatures. McCain has only the Senate and the Navy. Even Hillary was only a Senator and a politician's wife (and better-than-average part-time commodities trader).

Palin is a business owner, a former mayor, and a state governor. She is a self-made and very intelligent woman. Instead of celebrating a victory for their gender, radical feminists are instead saying she is not a "real woman."

 

[blueridge71]

Yeah, let's elect the two biggest deregulators in Washington (McCain and Phil Gramm) since the great depression who directly contributed to the mortgage crisis and the deregulation of Wall Street which has resulted in the horrible state of the economy.

Did you know that in 2005 McCain sponsored a bill to create a new agency to oversee Fannie and Freddie? It died in a committee chaired by Chris Dodd, a Democrat who was later revealed to have a mortgage with preferential rates underwritten by Countrywide, one of the biggest subprime lenders.

 

[gutshotdraw]

Like you said blueridge, don't confuse them with the facts.

BTW, latest Gallup poll: Obama 50% McCain 44%

The electoral map based on in-state polling looks more like OBummer every day.

 

[RNObased]

Palin is a business owner, a former mayor, and a state governor. She is a self-made and very intelligent woman. Instead of celebrating a victory for their gender, radical feminists are instead saying she is not a "real woman."

You didn't mention HOT, I'm going to get my wife a pair of those glasses that Palin wears.

Man, my mind is in the gutter.

 

[jetwash]

http://taxprof.typepad.com/taxprof_blog/2008/06/effect-of-obama.html

The success of Fractionals depends on small business owners and individuals who make well over $250,000 of income per year. Will fractional owners cut expenses, like our jobs, to keep their overall take home pay the same as under Bush's tax plan.

I'm curious to hear what some of you guys/gals think about this. Will it help us or hurt us as Pilots?

To get back to the first question.


A friend of mine, a small business owner making well over the $250K per year said he will pay more in personal income tax under Obama rather then McCain. However if Obama get in and helps out the "little people" (his customers) they will then spend more money in his stores and he will make 10 times the money then he would have saved with McCain.

So it come down to "trickle down" or "trickle up" economics.

I would rather have the money in my hands and then spend it so that it can "trickle up" rather then wait and hope that someone else spends it so that it might "trickle down" to me.

 

[Sparse]

To get back to the first question.


A friend of mine, a small business owner making well over the $250K per year said he will pay more in personal income tax under Obama rather then McCain. However if Obama get in and helps out the "little people" (his customers) they will then spend more money in his stores and he will make 10 times the money then he would have saved with McCain.

So it come down to "trickle down" or "trickle up" economics.

I would rather have the money in my hands and then spend it so that it can "trickle up" rather then wait and hope that someone else spends it so that it might "trickle down" to me.

Really?? So that job flying that private jet didn't trickle down to you? RIch people create the jobs. They do it with capital investment. They rely on capital gains taxes to reduce the risk. Rich people also spend the money they make on expensive items such as Private Jets. So if the capital gains tax goes away and the money is taken from there hands and put you little hands, how long will it be before those little hands don't have a job. I love rich people. They pay my salary. I don't ever recall hauling any poor people around on these private jets. Barama claims he will give 95% of Americans a tax break. He never says how much.

 

[jetwash]

Really?? So that job flying that private jet didn't trickle down to you?

It trickled down to me after consumers purchased items from the businesses the rich folks own. If the rich folks didn't have the "little people" as customers they would not have earned a profit from them to buy their aircraft.

If the customers are not spending; buying your products then tax breaks mean nothing since you will not have any income.



Barama claims he will give 95% of Americans a tax break. He never says how much.

Use the calculator link to figure out your own tax break. (unless you are earning more then $250,000/year)

http://obamataxcut.com/


The rich folk will vote for what is in their best interest.

I too will vote for what is in my best interest.

Only the fools will vote for race, gender or religion rather then the issues.