bureaucracybusters

THIS IS YOUR BOSS: VOTE LIKE I SAY – PART THREE (OF FOUR)

In Business, Politics, Social commentary on October 19, 2012 at 12:21 am

David Siegel is the founder and chief executive of Westgate Resorts, the largest privately owned time-share company in the world.

And he’s building the biggest home in the U.S., a 90,000-square-foot Florida palace they call Versailles.

Recently he took time off to tell his 7,000 employees how to vote. And to threaten them with dismissal if his Presidential candidate, Mitt Romney, loses the election.

On October 8, he sent out the following memo. To which I offer commentary where required.

SIEGEL:

Unfortunately, the costs of running a business have gotten out of control, and let me tell you why: We are being taxed to death and the government thinks we don’t pay enough.

We pay state taxes, federal taxes, property taxes, sales and use taxes, payroll taxes, workers compensation taxes and unemployment taxes. I even have to hire an entire department to manage all these taxes.

COMMENTARY:

On the contrary, the Federal income tax rate has never been lower for corporations. The United States’ corporate tax rate was at its highest, 52.8%, in 1968 and 1969.

Today it varies from 15% to 35%. And the wealthy have continued to prosper even more through the infamous “Bush tax cuts,” which cut the tax rate of the top 1% of American taxpayers by about 25%.

SIEGEL:

The question I have is this: Who is really stimulating the economy? Is it the Government that wants to take money from those who have earned it and give it to those who have not?

Or is it people like me who built a company out of his garage and directly employs over 7000 people and hosts over 3 million people per year with a great vacation?

Obviously, our present government believes that taking my money is the right economic stimulus for this country. The fact is, if I deducted 50% of your paycheck you’d quit and you wouldn’t work here.

I mean, why should you? Who wants to get rewarded only 50% of their hard work?  Well, that’s what happens to me.

Here is what most people don’t understand and the press and our Government has chosen to ignore – to stimulate the economy you need to stimulate what runs the economy.

Instead of raising my taxes and depositing that money into the Washington black-hole, let me spend it on growing the company, hire more employees, and generate substantial economic growth.

COMMENTARY:

In its June 8, 2011 cover-story on “What U.S. Economic Recovery? Five Destructive Myths,” Time magazine warned that profit-seeking corporations can’t be relied on to ”make it all better.”

Wrote Rana Foroohar, Time‘s assistant managing editor in charge of economics and business:

“There is a fundamental disconnect between the fortunes of American companies, which are doing quite well, and American workers, most of whom are earning a lower hourly wage now than they did during the recession.

“The thing is, companies make plenty of money; they just don’t spend it on workers here.

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

In short: Giving even greater tax breaks to mega-corporations–the standard Republican mantra–has not persuaded them to stop “outsourcing” jobs.

Nor has it convinced them to start hiring Americans.

SIEGEL:

My employees will enjoy the wealth of that tax cut in the form of promotions and better salaries. But that is not what our current Government wants you to believe.

They want you to believe that it somehow makes sense to take more from those who create wealth and give it to those who do not, and somehow our economy will improve.

COMMENTARY:

“The Republicans have pulled off a major (some would say cynical) miracle,” writes Time’s Rana Foroohar.

They have convinced “the majority of Americans that the way to jump-start the economy is to slash taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans.

“It’s fun-house math that can’t work. We’ll need both tax increases and sensible entitlement cuts to get back on track.”

SIEGEL:

They don’t want you to know that the “1%”, as they like to label us, pay more than 31% of all the taxes in this country.

Thomas Jefferson, the author of our great Constitution, once said, “democracy” will cease to exist when you take away from those who are willing to work and give to those who would not.”

Business is at the heart of America and always has been. To restart it, you must stimulate business, not kill it.

However, the power brokers in Washington believe redistributing wealth is the essential driver of the American economic engine. Nothing could be further from the truth and this is the type of change they want.

COMMENTARY:

“The man who builds a factory,” said President Calvin Coolidge, “builds a temple. “And the man who works there, worships there.”

Most corporate CEOs still believe this–and Siegel is clearly one of them. But there is no reason for the rest of us to embrace this self-defeating philosophy.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: