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Small business owners that make 250k + will you raise your prices if Obama wins?

Why or why not?

Answer Question
 
Anonymous

Asked by Anonymous at 5:32 PM on Oct. 30, 2008 in Politics & Current Events

Answers (13)
  • Yes, unfortunately we have no choice. We might have to lay off a few workers too. The taxes under Obama's plan is just too much for us to handle, therefore we have to raise the prices a little bit.........
    Anonymous

    Answer by Anonymous at 5:33 PM on Oct. 30, 2008

  • I never understood the uproar about this ( call me naive) what small business makes over $250,000.? The mom and pop on the corner, my friends Pagan store, the little book store, Joe's landscaping, Al's pizzeria, Mel's bakery? I don't think these people make $250,000 a year. So what is a name of a small business? I really don't get it.

    FishingMama

    Answer by FishingMama at 5:41 PM on Oct. 30, 2008

  • Well, I also assumed that they were talking about the business' "take-home pay". But then I saw an interview during which Joe Biden said they were talking about the gross income: businesses that bring in $250k BEFORE subtracting expenses, like paying rent, employees' paychecks, buying items they sell, etc. That is a whole different kettle of fish. We're talking about raising taxes on really small businesses !
    waldorfmom

    Answer by waldorfmom at 5:50 PM on Oct. 30, 2008

  • Well, wouldn't you? In order to make money you have to have a profit. Take food, if you are a grocer and food prices go up. You raise your prices so you are still making a profit comperable to what you were making. If you are the company making the food you put your product in a smaller box so people are not getting as much for their money and have to buy more. Some even raise the price and give you less. If the price of gas goes up then truckers have to pay more so they charge more to ship. The companies receiving the items will raise their selling prices to retain profit margins. If the price of wood goes up due to some enviormental policy then the price of 2x4s and so on will go up because the business will not lose money. People think this is a bad thing but if you think about it, the business is their livelyhood and they most likely have a family to raise also.
    itsmesteph11

    Answer by itsmesteph11 at 5:58 PM on Oct. 30, 2008

  • Umm... FishingMama - this is nearly every small business out there. They are talking about the amount of money a business makes before it pays for it's rent, the utilites, the employees pay, the supplies and things they sell, and long before the owner takes any money out as pay. Most businesses that make this little, the owner has "take home pay" of $50K or less a year.

    I'm not a small business owner but my husband works for one. The boss was thinking of adding another employee. Now, he's going to wait and see if he can afford to. That's good and bad news for us - longer hours for my husband, a little more take home pay for us, but less time my DH gets to spend with his daughter. It's bad news for anyone looking for a job - some business will put off hiring anyone, some will cut staff. The money for the higher taxes has to come from somewhere afterall.
    kaycee14

    Answer by kaycee14 at 6:05 PM on Oct. 30, 2008

  • I don't think these people make $250,000 a year. So what is a name of a small business? I really don't get it.

    Actually it's not only the business that matters and it doesn't have to be small as in the corner florist. What about Home Depot or Groceriers such as Kroger or Tom Thumb etc. What about all the Pool stores, small 2 and 3 store chain restaurants, How about the Dr who sets up his own practice with a couple of other Drs. There are millions of small and medium businesses. The fact is No matter what size they are a tax hit will hurt everyone who shops there. Businesses WILL NOT lose money. They will raise prices and when they can't , they close down and that hurts everyone.
    itsmesteph11

    Answer by itsmesteph11 at 6:08 PM on Oct. 30, 2008

  • What kind of Business are you in anon 5:33. My brother owns 2 car washes and 22 atm machines and I owned a Hair styling shop and my husband owned a landscaping company and none of us made or will make that kind of income when you are talking about taxable income. I have 2 cousins, one is a PAC and the other is a MD and even they don't feel their should be a problem. I would love to find a small business with that income bracket. It is Taxable income, not gross.
    Anonymous

    Answer by Anonymous at 6:10 PM on Oct. 30, 2008

  • Taxable income is different then gross. We owned a Hair styling shop and a Landscaping business. You have business deductions taken off before taxes. We actually have done much better with business than working for someone. Their are a lot of deductions if you get the right accountant.
    Anonymous

    Answer by Anonymous at 6:13 PM on Oct. 30, 2008

  • This is how it works, You work, you get paid you do your taxes. The amount you have as your adjusted gross income is the amount they are talking about. Of course don't look for to many deductions if Obama is president. He wants to close all those loopholes. Also remember you will have to pay for your employees health insurance. (or into the pool)
    itsmesteph11

    Answer by itsmesteph11 at 6:47 PM on Oct. 30, 2008

  • No. I am a consultant and I will not have to increase my prices or lay a single one of my people off. The thing is, I will still have EONS more tax deductions than a person earning less than 250 will have. My business will also provide me with a way to get bailout because I don't offshore. So, the problem is a made up prob for small businesses. The ones that are bitching are the Fortune 500's. They are the ones that will suffer because they won't be allowed to offshore. However, since they cannot offshore as much they will be forced to provide more jobs here. And instead of having 1000 deductions they will have 800. AND they will pass it along to you in salary, but if you haven't been living under a large boulder lately - they have been for the past 6 years since the rising cost of oil and oh, wait - offshoring countries are raising taxes there.
    Anonymous

    Answer by Anonymous at 6:53 PM on Oct. 30, 2008

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