California Family Minute

 September 28, 2011

Applaud the Small Business Owner

by Ron Prentice,
Chief Executive Officer

California Family Council keeps its balance by holding to the issues of marriage, life, parenting and religious liberty. But today, please permit me some lenience. 

The top 5% ($160,000 or more) paid almost 59% of the entire tax burden.

Those who earned less than $33,000 per year fell into the bottom 50% of all wage earners, and that entire group paid 2.7% of the total tax burden. This group paid 10-15% of their income to the federal government.

If a company’s adjusted gross income is greater than $75,000, the corporate tax rate will be no less than 34%.

Now, I recognize that not all those in the top two tiers are active business owners; but much of that population is! So I’m struggling with the recent demonization of those who are financially successful, knowing that business owners are the backbone of society by creating jobs and paying the lion’s share of taxes.

A few years ago I sat with a friend and business owner as he brainstormed how he could keep a faithful employee on the payroll in spite of the economic downturn. My friend shed tears as he described the personal circumstances of his employee (rocky marriage and young children).

More than once I’ve walked a particular food processing plant with its owner. I am amazed at how this man remembers the first names of dozens and dozens of his employees. As we walk, he asks employees about their children and their spouses. 

Business owners take tremendous financial risks, from each new hire and the corresponding commitment to provide wages, benefits, and a family’s sense of security, to the huge bank loan that will allow the business to grow, providing more jobs for more individuals.

Meanwhile, employees of these businesses put in their hours and receive their bi-weekly paychecks like clockwork, without a second thought. Not everyone possesses an entrepreneurial spirit, nor should they. However, I take issue with disparaging remarks and name-calling by a leader, intentionally creating a “have” versus “have not” warfare. 

With the motivation of increasing taxes, it is dishonest and unethical to portray an entire sub-population as selfish and greedy. It is by the generosity of all that churches and parishes, crisis pregnancy centers and adoption agencies, and homeless shelters and global missions agencies fulfill the Great Commission.

Are there alternative answers to the fiscal solution? You bet. But those solutions are more painful and may wreak havoc on a politician’s re-election efforts.

So, don’t buy into the rhetoric; and consider telling your employer “thanks.”

For additional reading on taxation and “fairness,” link here and here.