The Employee Meeting

[bigsweetie]

Subject: The Employee Meeting



The Employee Meeting: I would like to start by thanking you for attending
this meeting, though it's not like you had much of a choice. After all,
attendance was mandatory. I'm also glad many of you accepted my invitation
to your family members to be here as well. I have a few remarks to make to
all of you, and then we'll retire to the ballroom for a great lunch and some
employee awards.

I felt that this meeting was important enough to close all 12 of our tire
and automotive shops today so that you could be here. To reassure you,
everybody is being paid for the day --- except me. Since our stores are
closed we're making no money. That economic loss is mine to sustain.
Carrington Automotive has 157 full time employees and around 30 additional
part-timers. All of you are here. I thank you for that.

When you walked into this auditorium you were handed a rather thick 78-page
document. Many of you have already taken a peek. You were probably surprised
to see that it's my personal tax return for 2008. Those of you who are adept
at reading these tax returns will see that last year my taxable income was
$534,000.00. Now I'm sure this seems rather high to many of you. So ...
let's talk about this tax return.

Carrington Automotive Enterprises is what we call a Sub-S - a Subchapter S
corporation. The name comes from a particular part of our tax code. Sub-S
status means that the income from all 12 of our stores is reported on my
personal tax return. Businesses that report their income on the owner's
personal tax return are referred to as "small businesses." So, you see now
that this $534,000 is really the total taxable income - the total combined
profit from all 12 of our stores. That works out to an average of a bit over
$44,000 per store.

Why did I feel it important for you to see my actual 2008 tax return? Well,
there's a lot of rhetoric being thrown around today about taxes, small
businesses and rich people. To the people in charge in Washington right now
I'm a wealthy American making over a half-million dollars a year. Most
Americans would agree: I'm just another rich guy; after all ... I had over a
half-million in income last year, right? In this room we know that the
reality is that I'm a small business owner who runs 12 retail establishments
and employs 187 people. Now here's something that shouldn't surprise you,
but it will: Just under 100 percent ... make that 99.7 percent of all
employers in this country are small businesses, just like ours.

Every one of these businesses reports their income on a personal income tax
return. You need to understand that small businesses like ours are
responsible for about 80 percent of all private sector jobs in this country,
and about 70 percent of all jobs that have been created over the past year.
You also need to know that when you hear some politician talking about rich
people who earn over $200,000 or $500,000 a year, they're talking about the
people who create the jobs.

The people who are now running the show in Washington have been talking for
months about raising taxes on wealthy Americans. I already know that in two
years my federal income taxes are going to go up by about 4.5 percent. That
happens when Obama and the Democrats allow the Bush tax cuts to expire. When
my taxes climb by 4.5 percent the Democrats will be on television saying
that this really isn't a tax increase. They'll explain that the Bush tax
cuts have expired .. nothing more. Here at Carrington we'll know that almost
5% has been taken right off of our bottom line. And that means it will be
coming off your bottom line.

Numbers are boring, I know ... but let's talk a bit more about that
$534,000. That's the money that was left last year from company revenues
after I paid all of the salaries and expenses of running this business. Now
I could have kept every penny of that for myself, but that would have left
us with nothing to grow our business, to attract new customers and to hire
new employees. You're aware that we've been talking about opening new stores
in Virginia Beach and Newport News . To do that I will have to buy or lease
property, construct a building and purchase inventory. I also have to hire
additional people to work in those stores. These people wouldn't immediately
be earning their pay. So, where do you think the money for all of this comes
from? Right out of our profits .. right out of that $534,000. I need to
advertise to bring customers in, especially in these tough times. Where do
you think that money comes from? Oh sure, I can count it as an expense when
I file my next income tax return .. but for right now that comes from either
current revenues or last year's profits. Revenues right now aren't all that
hot ... so do the math. A good effective advertising campaign might cost us
more than $300,000.

Is this all starting to come together for you now?

Right now the Democrats are pushing a nationalized health care plan that,
depending on who's doing the talking, will add anywhere from another two
percent to an additional 4.6 percent to my taxes. If I add a few more
stores, which I would like to do, and if the economy improves, my taxable
income ... our business income ... could go over one million dollars! If
that happens the Democrats have yet another tax waiting, another five
percent plus! I've really lost track of all of the new government programs
the Democrats and President Obama are proposing that they claim they will be
able to finance with new taxes on what they call "wealthy Americans."

And while we're talking about health care, let me explain something else to
you. I understand that possibly your biggest complaint with our company is
that we don't provide you with health insurance. That is because as your
employer I believe that it is my responsibility to provide you with a safe
workplace and a fair wage and to do all that I can to preserve and grow this
company that provides us all with income. I no more have a responsibility to
provide you with health insurance than I do with life, auto or homeowner's
insurance. As you know, I have periodically invited agents for health
insurance companies here to provide you with information on private health
insurance plans.

The Democrats are proposing to levy yet another tax against Carrington in
the amount of 8 percent of my payroll as a penalty for not providing you
with health insurance. You should know that if they do this I will be
reducing every person's salary or hourly wage by that same 8 percent. This
will not be done to put any more money in my pocket. It will be done to make
sure that I don't suffer financially from the Democrat's efforts to place
our healthcare under the control of the federal government. It is your
health, not mine. It is your healthcare, not mine. These are your expenses,
not mine. If you think I'm wrong about all this, I would sure love to hear
your reasoning.

Try to understand what I'm telling you here. Those people that Obama and the
Democrats call "wealthy Americans" are, in very large part, America's small
business owners. I'm one of them. You have the evidence, and surely you
don't think that the owner of a bunch of tire stores is anything special.
That $534,000 figure on my income tax return puts me squarely in Democrat
crosshairs when it comes to tax increases.

Let's be clear about this ... crystal clear. Any federal tax increase on me
is going to cost you money, not me. Any new taxes on Carrington Automotive
will be new taxes that you, or the people I don't hire to staff the new
stores I won't be building, will be paying. Do you understand what I'm
telling you? You've heard about things rolling downhill, right? Fine ...
then you need to know that taxes, like that other stuff, roll downhill. Now
you and I may understand that you are not among those that the Democrats
call "wealthy Americans," but when this "tax the rich" thing comes down you
are going to be standing at the bottom of the mud slide, if you get my
drift. That's life in the big city, my friends ... where elections have
consequences.

You know our economy is very weak right now. I've pledged to get us through
this without layoffs or cuts in your wages and benefits. It's too bad the
politicians can't get us through this without attacking our profits. To
insure our survival I have to take a substantial portion of that $534,000
and set it aside for unexpected expenses and a worsening economy. Trouble
is, the government is eyeing that money too ... and they have the guns. If
they want it, they can take it.

I don't want to make this too long. There's a great lunch waiting for us
all. But you need to understand what's happening here. I've worked hard for
23 years to create this business. There were many years where I couldn't
take a penny in income because every dollar was being dedicated to expanding
the business. There were tough times when it took every dollar of revenues
to replenish our inventory and cover your paychecks. During those times I
earned nothing. If you want to see those tax returns, just let me know.

OK ... I know I'm repeating myself here. I don't hire stupid people, and you
are probably getting it now. So let me just ramble for a few more minutes.
Most Americans don't realize that when the Democrats talk about raising
taxes on people making more than $250 thousand a year, they're talking about
raising taxes on small businesses. The U.S. Treasury Department says that
six out of every ten individuals in this country with incomes of more than
$280,000 are actually small business owners. About one-half of the income in
this country that would be subject to these increased taxes is from small
businesses like ours. Depending on how many of these wonderful new taxes the
Democrats manage to pass, this company could see its tax burden increase by
as much as $60,000. Perhaps more.

I know a lot of you voted for President Obama. A lot of you voted for
Democrats across the board. Whether you voted out of support for some
specific policies, or because you liked his slogans, you need to learn one
very valuable lesson from this election. Elections have consequences. You
might have thought it would be cool to have a president who looks like you;
or a president who is young, has a buff body, and speaks eloquently when
there's a teleprompter in the neighborhood. Maybe you liked his promises to
tax the rich. Maybe you believed his promise not to raise taxes on people
earning less than a certain amount. Maybe you actually bought into his
promise to cut taxes on millions of Americans who actually don't pay income
taxes in the first place. Whatever the reason .. your vote had consequences;
and here they are.

Bottom line? I'm not taking this hit alone. As soon as the Democrats manage
to get their tax increases on the books, I'm going to take steps to make
sure that my family isn't affected. When you own the business, that is what
you're allowed to do. I built this business over a period of 23 years, and
I'm not going to see my family suffer because we have a president and a
congress who think that wealth is distributed rather than earned. Any
additional taxes, of whatever description, that President Obama and the
Democrats inflict on this business will come straight out of any funds I
have set aside for expansion or pay and benefit increases. Any plans I might
have had to hire additional employees for new stores will be put aside. Any
plans for raises for the people I now have working for me will be shelved.
Year-end bonuses might well be eliminated. That may sound rough, but that's
the reality.

You're going to continue to hear a lot of anti-wealth rhetoric out there
from the media and from the left. You can chose to believe what you wish ..
.but when it comes to Carrington Automotive you will know the truth. The
books are open to any of you at any time. I have nothing to hide. I would
hope that other small business owners out there would hold meetings like
this one, but I know it won't happen that often. One of the lessons to be
learned here is that taxes ... all taxes ... and all regulatory costs that
are placed on businesses anywhere in this country, will eventually be passed
right on down to individuals; individuals such as yourself. This hasn't been
about admonishing anyone and it hasn't been about issuing threats. This is
part of the education you should have received in the government schools,
but didn't.

Class is now dismissed.

[bigsweetie]

I saw this on another board and thought I'd get everyone's take on it here.

Apparently this has been going around in emails as well.

I have not fact checked any of his "statistics", but really that's not the point, IMO.

Whether you agree with this guy, or think he's a class A JERK, I believe it's the reality of "taxing the rich" or "redistributing the wealth". Remember, the income tax was originally only supposed to effect the "rich". When are we going to learn from our mistakes??:shrug7:

[Smee]

What I'm finding is stuff like this:

[Neal Boortz created this fictional talk of a small business CEO to his employees. While it may be fictional, it conveys some important lessons about economics. GA] Transcript of remarks made by Leo Carrington (who doesn't exist) to a mandatory meeting of all employees of Carrington Automotive Enterprises, Inc. (which doesn't exist either) on August 17th, 2009 at the Royal Payne Hotel (a purely imaginary place) in Norfolk, Virginia (which does, in fact, exist).

BEAR TO THE RIGHT

It appears that it's just another fictional story of impending gloom and doom to stir the masses, a Neal Boortz piece. Whatever works, I reckon. I'm not especially moved by hyperbole from anyone, right, left or middle.

I'll save someone the trouble:

[bigsweetie]

Originally Posted by Smee What I'm finding is stuff like this: BEAR TO THE RIGHT It appears that it's just another fictional story of impending gloom and doom to stir the masses, a Neal Boortz piece. Whatever works, I reckon. I'm not especially moved by hyperbole from anyone, right, left or middle. I'll save someone the trouble:

Fictional or not, I can't believe you turn a blind eye to the fact that this happens even TODAY! Regardless of Obama's tax increases, this has been the practice in most businesses for decades. The company my DH works for does this all the time. Profits are down, everyone takes a paycut (except for the boss, of course), times are good, pay is reinstated (sometimes). In anticipation of Obama's healthcare plan, our copays and deductibles went up (doubled, actually).

Libs are always talking about the profiteering businessman who only cares about himself and not his employees. What on EARTH would make you think that taxing him even more wouldn't hurt his employees, not him. He's going to be the LAST one to take the hit, not the first!

You call it drama, I call it a reality check

[Smee]

ToMAYto, toMAHto.

See, that's the hyperbole I'm talking about that completely blows any credibility. I'm fully aware of what's going on and I have a very watchful eye on it because surprise surprise I'm as concerned as anyone about cost and outcome. Still, call me silly, I just don't need to be spoon fed anyone's hysterical rhetoric to be "informed." I'm not buying that whole "if you're not buying into this tripe, you clearly don't care" bs line. If this is the kind of stuff others need to hang onto for the sake of being "informed," the problems are probably far greater than either of us imagined.

The drama geek was TIC because it's a card played every time someone from the other side of the political spectrum shares their own anecdotal story. People who disagree with "me" = hyperbolic drama queen. People who agree with "me" = reality, concern and informed. I just don't walk that party line and dismiss such bs claims.

[Dengineer]

WHAT? Actions have consequences??!!?? NO FREAKING WAY! The government needs to pass some laws and set up a new department to rid us all of horrible, appalling consequences.

[Smee]

I'm sorry, bigsweetie. My last response sounded snappier than I meant it. I think I directed at you a response to a general annoyance. I just do not understand how people are not insulted to have this propaganda shoved at them in the name of "information." Do these people think their audiences are so dumb that they need fairytales to make their point? Email forwards and facebook posts given so much credibility at face value? That's an annoyance that crosses party lines, but I'll openly admit that I'm pretty dismissive of a lot of the gloom and doom end of days stuff that's become so pervasive. I do get annoyed when the response to dismissing such is an accusation of turning a blind eye or not caring. It's the exact reason I try to avoid making sweeping "you must hate poor people" and "WWJD" type of arguments as well. It's not inconceivable to me that perhaps there's just a philosophical difference that is not indicative of cognitive ability (or lack thereof).


To own my own bias, it's harder for me to muster up the sympathy for (perceived or otherwise) loss of money than it is for (perceived or otherwise) loss of life. As it is, I'll just sit here on my fence and agonize over both while weighing out the arguments from each side. It's lonely in the middle.

[bigsweetie]

Originally Posted by Dengineer WHAT? Actions have consequences??!!?? NO FREAKING WAY! The government needs to pass some laws and set up a new department to rid us all of horrible, appalling consequences.

Don't worry Den... they're slowly, but surely, working on just that!

[bigsweetie]

Originally Posted by Smee I'm sorry, bigsweetie. My last response sounded snappier than I meant it. I think I directed at you a response to a general annoyance. I just do not understand how people are not insulted to have this propaganda shoved at them in the name of "information." Do these people think their audiences are so dumb that they need fairytales to make their point? Email forwards and facebook posts given so much credibility at face value? That's an annoyance that crosses party lines, but I'll openly admit that I'm pretty dismissive of a lot of the gloom and doom end of days stuff that's become so pervasive. I do get annoyed when the response to dismissing such is an accusation of turning a blind eye or not caring. It's the exact reason I try to avoid making sweeping "you must hate poor people" and "WWJD" type of arguments as well. It's not inconceivable to me that perhaps there's just a philosophical difference that is not indicative of cognitive ability (or lack thereof). To own my own bias, it's harder for me to muster up the sympathy for (perceived or otherwise) loss of money than it is for (perceived or otherwise) loss of life. As it is, I'll just sit here on my fence and agonize over both while weighing out the arguments from each side. It's lonely in the middle.

No offense taken what-so-ever. But I don't see this as a "gloom and doom, end of days" type of post. I see it as "don't you see what our mentality is and how these taxes hurt YOU, not US"?

Even though this meeting never occured IRL, his mentality (you're going to take the hit, not me) is the norm! I see it everywhere, even in my own life. Every job my DH has ever had has done this. Lay people off when times are tough, issue pay cuts, reduce benefits, etc. This isn't a new phenomenon. BUT looking ahead we're about to incur HUGE tax increases under President Obama's term and for many years afterward and IMO, the only people truly hurt by it are the ones the Dems claim they want to help!

The fictional guy in the article may have been a jerk about it, but it's the reality that we live in and if we don't take that into account when we pass these bills, we're going to end up hurting the people who need the most help. To me, Congress isn't thinking these things all the way through to their conclusion and that's dangerous, IMO. You have to be careful when you're "helping" people that you're not unintentionally hurting them in the long run.

Do you know many business owners that continually take the hit on their personal income and not pass their tax increases down to the 'working' class or to the people who use their services or buy their products? Or is it just my personal experiences? I'm not trying to be snarky, I'm asking honestly and respectfully.

[selah]

......maybe we can just do this and everything will go away.....

or just wait till our next election.....