Within our family, we have several small businesses, and during the past few days, we have had meetings with our employees.
In these meetings, we covered 2 basic topics. The effect of Senator McCain’s $5000 health insurance tax credit and the effect of the difference in taxes that Senator Obama would charge over McCain.
First … The health insurance. Our average health insurance premium is $7200 per year, and our average employee is in the 15% tax bracket. We asked how many agreed with the Obama position that they would pay more in taxes because they head McCain was going to tax their benefits. In each case, about half did. We then explained, in real dollars, what the tax credit would mean to them.
To the employee, this means he will get a tax bill of $7200 x 15% = $1080.
He will then get a tax credit of $5000, leaving $3920 more in his/her family’s budget. At this point, a lot of people were surprised, and we had to repeat that they would in fact have more than $300 per month left over.
Heads were now nodding …
NEXT … we talked about taxes. No matter how you do the math, Senator Obama is going to get an extra 22.6% out of the small business owner – Senator McCain’s lowering the corporate tax to 25% vs. Obama’s raising rates to 39.6% plus his 8 % social security surcharge is a huge difference, adding up to 47.6%. We red-staters know it will be worse than this, but we used the peomised numbers.
We explained, in plain language that, if the business had to pay Obama’s taxes, for every $10,000 in profit we made, we would have to give Washington $2500 under the McCain proposal, leaving us $7500. With Senator Obama’s proposal, we would pay $4800 (rounding off), leaving us $5200.
The employees finally understood. They know that the more we spend on taxes, the less there is left to expand the business, and hire new people.
After the meetings, out of 150 employees, 12 actually approached us and said they were changing their vote to McCain.
Can you imagine the effect if every small business owner could do the same thing ?
This is not about my “getting credit” for anything. If Moe Lane could somehow get this idea out, it may mean many votes changing sides.