Does John Fleming represent you? Does he “look” like you? Does he identify with you?

Better to remain silent and be thought a fool, than to open your mouth and remove all doubt.

Folks I’ve prepared tax returns since the late 1980’s and worked as a CPA for small businesses both larger and smaller than Louisiana Representative John Flemming’s fast food empire. Back in the 1990s when tax rates were higher 6 figures folks like John absolutely paid more in taxes. Our budget was balanced and the economy was booming.

It is not that Republicans like Fleming are clueless that is scary as plenty of politicians are dumber than posts, even those that manage to run their own businesses. It is that politicians like Fleming are willing to take uncalculated and indeed reckless chances with the economy just so they won’t have to pay more for the mess they created that scares me.

Balancing the book isn’t hard folks. All it takes is a bit of will and a willingness to not touch the koolaid. Indeed Ezra Klein of the WaPo documented back in May that lower taxes on the wealthy like Fleming do not create jobs and in fact I would argue the incentive to hire someone is actually greater when marginal tax rates are higher all things being equal.  My own experience is I’ve been one person down in my small business since late 2009 and I won’t hire until I see signs of true economic growth which would give me the opportunity to profit from the labor.

Or put another way, if the GOP koolaid drinker position had any merit, unemployment would already be low considering how low rates have been since 2001. Instead the wealthy have gotten wealthier while 1 american in 6 has slipped into poverty induced by unbridled greed.

sop

6 thoughts on “Does John Fleming represent you? Does he “look” like you? Does he identify with you?”

  1. The way it works in the non koolaid drinking world is you have a pile of money left to invest back in the business and provide for a return on investment. Notice where Flemming puts "feeding his family" in the equation? Fast food mogul=minimum wage and likely no benefits for his people. Yes I do believe he's the poster child for new american capitalism.

    I bet his companies would make for a rich IRS audit.

    sop

  2. Just pegged my BS meter by listening to this pile of garbage. He is mixing his personal income with the corp income…You're right, he is ripe for an audit.
    ANYBODY from the IRS reading this? Everybody else does.

  3. New Ahat itmerican capitalism seems to equate to "Hooray for me, & F-you!" These wannabe entrepreneurs are militantly ignorant of any classic economics at least in respect of recognizing that "demand" requires expendable income, ergo "supply" cannot sustain a viable economy by siphoning off all economic gain of "enterprise". These social parasites are playing economic "king of the hill" using the political power and monetary advantage to step on the fingers of those trying to climb to a higher standard of living.
    I could say that most "investment" is not job producing, in that no new enterprise is created – this "investment" is generally the exchange of ownership of existing enterprise, no new business, no new jobs, just new owners….a shellgame played for tax breaks and cashing out ownership positions.
    Just how many new subways or any other enterprises did Fleming create, and how many were bought; and did net job gains or losses result? We seem to be surrounded by sheep (and less) in wolf's clothing!

  4. What John Flemming said is exactly right. Class warfare has never created jobs. Thats a very true statment. he said very clearly that his family live on 200k of his 600k earnings. he reinvests 400k in growing and maintaining his business. I doubt if he is taxed more that John Flemming or 1000s of other business owners will change the equation. They will continue to maintain the same family budget well reducing the reinvestment budget. Who does that hurt? Thats hurts the people walking around unemployed wishing they had a job if its only a job as a clerk in a UPS store or a subway employee. Its clear that increasing the taxes on the wealthy is a bad choice for America. he is correct!

    1. Joe you obviously have Slabbed confused for someplace else as we're talking basic economic theory here. In fact I'll add our demographics are such that we have a nice concentration of 6 figure income types that both read and write this blog. I say this because we don't serve koolaid here and actually try to make useful idiots think for themselves. Some people resist this at all costs.

      Balancing a budget is actually pretty easy as the formula is one most everyone understands. (Cash Inflows – Cash Outflows = Net) If the net is negative then you are living beyond your means and that is the current state of the nation. The record is we had a massive tax cut in 2001 coupled with a medicare prescription drug benefit that was not funded in 2004 plus we are paying for 2 wars. This of course means cash inflows were reduced while the cash outflow number inceased exponentially. The result is what most people call a clusterfuck.

      Now the TEA Party types think you can simply cut your way out of the problem but that is mind candy for economic simpletons that can not add 2 plus 2. The irony is the refusal to consider all options will help guarantee that we'll end up insolvent as a nation and this is where the TEA party becomes irresponsible and dangerous.

      As to Flemming he certainly takes a salary that is not included in that $600,000 number he threw out unless of course he uses some sort of funny accounting that would interest the IRS. My own experience working with such people is that Officer Salary will vary as a percentage of sales depending on the industry bit I imagine he pulls down a nice $6 figure salary off the top in addition to the "feeding his family" component.

      The bottom line here is useless political rhetoric can sometimes do more harm than good as illustrated by the S&P downgrade of US debt, which in turn has certainly given Flemming's portfolio a nice haircut along with destroying the wealth of ordinary Americans in retirement plans etc. And it certainly has never created a job.

      No one likes to pay taxes, I know I don't. I don't know about you Joe but I'd like my own son to have a chance to enjoy the American dream like his pops does and I think it is highly irresponsible on our part leaving our children and grandchilden a pile of debt to pay off. And to fix the problem means everything has to be on the table including the tax cuts that began our addiction to debt.

      John Flemming represents John Flemming in congress and no one else. His simple minded self serving rhetoric makes him dangerous to the nation.

      sop

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