There is one thing that we in the business community need to clearly worry about as a result of last night's election, and that is whether or not we are going to be seeing an increase in our business taxes. According to the Wall Street Journal, 50% of small businesses could now see their taxes increase in the next four years.
While we would like it to not be the case, when business taxes increase, we need to either cover the additional expense by growing our business, or cutting back on essential spending.
For many businesses, economic conditions like the ones we are facing today make it very difficult to create business growth. Despite the best intentions of politicians, when businesses have to cut back spending, the chances that business will have to reduce work forces greatly increase.
As we take stock of last night's results and take a posture of waiting to see, let me share something with you that made its way to my email inbox this morning:
According to Alexander Tyler, a Scottish history professor at the University of Edinburgh, the United States of America has already outlived its expiration date. About the time our original thirteen states adopted their new constitution in 1787, Alexander Tyler, who was studying the rise and fall of democracies wrote:
A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury. From that moment on, the majority always vote for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world's greatest civilizations from the beginning of history, has been about 200 years.
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