Kerry Plans to Stifle American Economic Engine
By Andrew L. Jaffee, March 16, 2003
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Democratic presidential candidate John Kerry plans to raise taxes on all Americans earning more than $200,000 per year, if elected. In other words, Kerry plans to stifle the American economic engine.

It is easy to sit around complaining about America’s “elite, rich.” Some U.S. citizens work very hard, but never make anywhere near $200,000 per year. But is it fair -- or even wise -- to punish those who do make that much in a year? No, it is not.

Most Americans making $200K+ work their tails off. It’s not “easy” to be successful. In fact, those “rich” Americans employ the majority of American workers:

Many visitors from abroad are surprised to learn that even today, the U.S. economy is by no means dominated by giant corporations. Fully 99 percent of all independent enterprises in the country employ fewer than 500 people. These small enterprises account for 52 percent of all U.S. workers, according to the U.S. Small Business Administration (SBA). Some 19.6 million Americans work for companies employing fewer than 20 workers, 18.4 million work for firms employing between 20 and 99 workers, and 14.6 million work for firms with 100 to 499 workers. By contrast, 47.7 million Americans work for firms with 500 or more employees.

Monsieur Kerrie wants to bite the hand that feeds America. Do you know how hard it is to make $200,000 per year? I do.

In the early 1990’s, I found a job at the Florida Legislature. I built a team that made Florida’s legislative information (bills, laws, constitution, etc.) available in electronic format, making Florida one of the first states to go online. Guess what? My team was disbanded, and I was put in a cubicle by myself. We were punished for being successful, because we made the IT (information technology) mediocrities at the top uncomfortable.

Soon after, I was fortunate to meet a very dynamic young woman. She owned a small computer consulting firm with 2 employees. She wanted me to join her business to help organize and grow it. It was an offer I couldn’t refuse: creative freedom, risk, challenge, and excitement. In the span of 3 years, we built the business into the custom software development shop in Florida’s capital.

By our third year in business, we were making about $1 million in revenues and about $150,000 in net profits (before 40% in taxes). We had 30 employees and took very good care of them. We paid them well, and offered a complete suite of benefits including health insurance, dental insurance, short- and long-term disability, vacation, sick leave, and a self-directed pension plan. If an employee wasn’t performing, I would institute an improvement plan and try to mentor that person. So did my partner and I become the “rich, elite?” I'm still driving the same car I owned in the early 90's. My old partner and I are middle-class Americans, just like the majority of U.S. citizens.

Do you know how hard we worked to build our business; how many 60-hour weeks; how many late-night meetings and phone calls? Managing 30 employees, 50 projects, and 40 customers is not “easy.” Yet we built a first-class business and work environment. Our company was a family and we had a damn good time together. Yet with all this work, we only made $150,000 in net profits -- before 40% in taxes.

And yet John Kerry seeks to punish people willing to take on the responsibility and risk for being creative and taking care of their employees. His plan is a recipe for disaster. It would derail an economy that is now growing again. Don’t vote for John Kerry.



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