This story unintentionally makes the points that the federal government is way too big, is too involved with our lives, and has assumed way too many roles
NC small business says they can’t expand because of partial government shutdown >>> https://t.co/nAmepkImAp pic.twitter.com/7yhv9yNGXk
— CBS 17 (@WNCN) January 11, 2019
From the link, which is a reprint from a sister site out of Charlotte
The government shutdown entered its 21st day on Friday, and local small businesses are starting to feel the impacts.
“What they are doing is stalling my business. One of the most important things in my life is to run this business,†said Brooks Troxler, the President and Owner of Trox Tech Inc.
Troxler owns the tech company that is currently based in Matthews and he employs seven people. (snip)
Troxler was set to start 2019 with moving into a brand new, larger, street front business in Charlotte. However, he needs a loan from the Small Business Administration to make that happen. The SBA is a federal agency that provides loans at low interest rates for small businesses.
“This is something a small business desperately needs. Not a lot of places give out loans to small businesses because they are uncertain,†said Troxler. “There are not many more options out there to get this type of loan.â€
There are these things called “banks.” They provide loans. But, if we’re reading into this, it appears as if the business itself is shaky, so banks might not loan the money. So, the taxpayers are supposed to back a shaky loan? Of course, since the reporter failed to do the job and ask a simple question “why didn’t you go to a bank?” we are left to speculate.
But, then, the purpose here is to try and softly throw blame towards Trump as well as saying how super awesome government is and how we totally need them.
The hope was to be in the new property and the ability to hire four additional employees immediately.
“When we stop growing, we stop adding more employees. Right now, I cannot hire anymore employees because I do not have the space to do it,†said Troxler.
How about going and renting a property? Troxler is looking for a $550,000 loan from the SBA. Certainly, the bank would loan less to move into an existing building, right?
Of course banks will make loans to small businesses, but at a much higher interest rate. The article explained that. Are you against encouraging small business?
We let giant corporations write off their air corps, ferrying executives all over the globe, but supplying low cost loans to small businesses are an affront?
Jeff,
Once again, in your repulsive comments, you put words and concepts into another individuals commet. Can you read or does your hate cloud your vision, I would say thoughts but I don’t think you can think. If the SBA is shut down, then go elsewhere. If the guy is too much of a risk, then tax payers do not need to find him. You can also get an interim loan until you can make application. I suspect the owner is a liberal, so he will whine and carry on over the Dem shut down. If you desire to help, why not get with Nancy and have her find the wall, which is essential.
By the way, does your grant money continue to flow? I know you and your business run on our tax money.
dave,
You continue your ignorant lies. We are not funded by grant money but by venture firms, you smelly old liar.
Why do you find discussion or disagreement to be “repulsive”? The US has a successful system for supporting small business expansion, creating valuable jobs for little cost. Do you hate the American gov’t that much?
Did you ever accept Medicaid or Medicare payments?
There’s a lot here so I’ll try and be brief.
The guy said he was moving into a brand new facility which indicates to me it already exists and he’s leasing it. You can’t buy much in commercial property theses days for half a mil. Secondly, If he needs a loan to expand he shouldn’t expand. Big business can sometimes afford to expand before they have the money, small business rarely can. Finally, SBA does not make the loan a bank does, SBA just guarantees it. The bank can still make the loan if he’s a good risk and if he’s a bad risk why should we taxpayers be on the hook? I was in business all my life and never expanded unless I already had the money even when I took a loan so as not to use my own.
Jethro, you indicated the bank will make the loan at a higher interest rate so he can get the loan. He just has to pay a point or two more. Big deal. He should quit whining and either take the loan or not.
BTW, we don’t “let” giant corporations write off anything anyone who qualifies can. What’s the problem? You do realize it’s their money not the governments money don’t you? Taxpayers are not on the hook to repay tax deductions they are for loans, big difference.
I don’t think any of us here are against “encouraging small business” however, encouraging something and financing it are two different things, aren’t they? Nonetheless, a delay in this guys loan isn’t discouraging him it’s just delaying him, correct?
Seems to me the only time leftists give a rat’s azz about business is when they can use it for political cannon fodder. Other than that it’s screw you to the little guy. Which do you think is more discouraging to small business, the layers of EPA, OSHA, ADA, EEOC compliance laws and their associated fees and minimum wage laws or a couple points on an expansion loan?
And yet it’s the liberals who support the SBA and Cons who don’t.
You pay more taxes so that corporations and the wealthy can pay less.
Venture firms.
Most venture capital firms raise their “funds’ from institutional investors, such as pension funds, insurance companies, endowments, foundations, family offices, and high net worth individuals. The investors who invest in venture capital funds are referred to as “limited partners.”
Corporate venture capital funds get their money from (usually) one particular corporation. Family office funds invest money from one individual family or estate. Special purpose vehicles (SPVs) are micro-VC funds that are accumulated just for one particular deal.
So the anti-capitalist, anti-corporation, high tax AGW proponent uses capital from corporations and mega wealthy donors to fund his lifestyle. This is typical of leftists.
In Hollywood for example Matt Damon is vehemently anti-gun yet has made his fortune killing people on screen with guns. Jason Bourne 4 movie set. Saving Private Ryan. etc.
Obama funded the trillion dollar bail out of Banks and people wonder why the left is becoming the new GOP party. In bed with billionaires and corporate Banks and Wall Street. All one has to do is look at the resident (Whatever he is) who talks about getting his lifestyle funded by venture capitalists.
Who are almost always rich billionaires, Corporations or hedge funds all of whom use WALL STREET and Corporate American to fund his business and these people always rail against them getting tax breaks.
Tu quoque, StillLife?
You’re against venture capitalists investing in small corporations? So only Con Men should be entrepreneurs?
Venture firms invest largely in tech and biotech firms which require large early funding rounds. And the investments are not guaranteed as the funds are exchanged for equity in the company. If the company succeeds, the venture firm makes a lot of money.
If you needed $40 million to fund a company, how would you do it? A Phase 3 clinical trial might require 400 patients at $100,000 cost per patient, and the FDA may require more than one Phase 3 study.
Venture investing, as much as you hate it, is an important mechanism for funding high-risk, high-reward research and development that if successful leads to economic growth and excellent, well-paying jobs.
.
We should all try to keep our eye on the poor and working classes. The wealthy are well-rewarded already.
“And yet it’s the liberals who support the SBA and Cons who don’t.”
First off, the Reconstruction Finance Corporation created by Herbert Hoover in 1932 to help business through the Great Depression was the grandparent of the SBA. Was Hoover a liberal or a con, a Republican or Democrat? Secondly, the SBA was created by Congress in 1953 under Dwight D. Eisenhower to specifically aid small business. Was Eisenhower a liberal or con, a Republican or Democrat? Fundamentally the left has been no friend of business large or small by constantly adding regulations, taxes and meddling in a subject which they know little about: economics. You might not have noticed but the left in this country has been running toward socialism/communism for decades and personified by their current shining stars like Sanders and Occasional-Cotex. Neither socialists nor commies are “business friendly” historically.
As far as me paying “more taxes so corporations and the wealthy can pay less” that statement belies the basic ignorance of taxes, economics, business and law so prolific on the left. My taxes and your taxes have no bearing and no effect on those paid by other people nor corporations. Tax law is not written that way, economics doesn’t work that way, nor do businesses or the law. One would have to be ignorant enough to believe in The Whole Pie Theory to actually believe my taxes would in any way increase or reduce yours. Do you believe in that?
In conclusion I repeat: “Seems to me the only time leftists give a rat’s azz about business is when they can use it for political cannon fodder.” Those on the left, particularly represented by the extreme socialist/communists now so ubiquitous in the Democrat party (Do I need to name all the names?) are no friend of business large or small. The constant drum beat for more regulations on everything from wages to plastic drinking straws coupled with the love of graduated taxes which specifically hit the up and coming businessmen the hardest since it is they who rely on growing income to reinvest in their business shows not only the lack of appreciation the left holds for business but indicates outright contempt for all business large and small.
I beg to differ. Every nation has obligations, e.g., defense, common welfare, infrastructure, social stability (law enforcement, courts, fire protections)… These are paid for by taxes. We can either support the gov’t efforts with taxes or put them on credit. Conservatives have longed demonized deficit spending (but only when a Dem is President), but it’s a fact that the interest on the accumulated debt must be paid.
When we slash federal taxes on the wealthiest among us we either slash spending (defense, Social Security, Medicaid, Medicare, interest are our largest expenses) or transfer the tax burden to the non-wealthy. When federal spending to the states and localities are cut, the locals increase their taxes which are universally regressive. This is why you hear the GOP wanting to gut Social Security, Medicare and Medicaid – to allow the wealthy to keep more.
But we agree that the gov’t needs to help small businesses as much as possible, e.g., with SBA loans, smart regulations and protections, fair labor laws, immigration reform, patent/copyright reform, and trade deals that do not reward the wealthy and punish the working classes.
To parallel your reasoning… the right doesn’t care for workers at all, only being concerned about the capitalists and businessmen (like me!). In fact, we need to care for both.
Finally, trickle down, supply side economics does not work. The top marginal fed income tax rate after WWII was over 90%! Yet, America prospered, building the interstate highway system, colleges and universities, expanded Social Security, established Medicare and started to face our history of oppressing minorities. And our middle class became the envy of the world.
Conservative policies have wreaked havoc on the poor and working classes over the last 4 decades. The wealthy, political donor classes continue to do well.
In our industry, we are funded largely by venture capitalists, tightly regulated by the US FDA who work closely with an international group (ICH), and of course, the USPTO. In over 3 decades, I’ve heard few complaints of being “over-regulated” (and almost always against the patent offices).
Jeff,
Is it that you are stupid and ignorant or just lying. Do you realize that most of the people who comment here can pick out the failure of your pathetic rants? The US did very well after WWII as we were the only surviving economy, period. But we had 90% taxes with all the crap you preach prior to WWII and it kept the depression going. What most people don’t know is that Hoover’s economic measures were working in the early 30’s. But people did not see the relief so FDR got in and instead of the depression ending in a few years, he extended the issue for 20 more years using your economic position, it failed. Trump’s economy is doing great and we would be better if the congress would quit spending money it does not have. Winning. MAGA.
“Top marginal rate was over 90%,..â€. As usual, only part of the story. Back then there were a ton of deductions for those in the highest brackets that we don’t have today, which would of course lowered any taxes owed. But more importantly, the top 1% pays a higher share of the total income tax bill now with a 37% rate than they did back then with the 90% rate. I know the advanced math is very hard, but having a larger number of high-income workers (through the fact that they take home more income) means collecting more total taxes.
And yet, with the miraculous Trump economy and tax cuts on the wealthy, the deficits are touching a $1 trillion a year. Is two years not long enough for tax cuts for the wealthy to trickle down?
Tax Rates
The 1990s-2012
During the 1990s, the top rate jumped to 39.6 percent.
However, the Economic Growth and Tax Relief and Reconciliation Act of 2001 dropped the highest income tax rate to 35 percent from 2003 to 2010. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 maintained the 35 percent tax rate through 2012.
2013 – 2017
The American Taxpayer Relief Act of 2012 increased the highest income tax rate to 39.6 percent. The Patient Protection and Affordable Care Act added an additional 3.8 percent on to this making the maximum federal income tax rate 43.4 percent.
2018-2019
The highest income tax rate was lowered to 37 percent for tax years beginning in 2018. The additional 3.8 percent is still applicable, making the maximum federal income tax rate 40.8 percent.
So in other words the rich pay a greater share than they used to, as said.
My post was to counter the misleading and uninformed shot at Trump,
…when the Trump tax rates have only been in effect for one year.
Of course nignorant conveniently dismisses the tax rates and trillions of debt during Obama’s reign of error.
But then again the little negro fella is not very bright.
Jeff,
It has been established that you know next to nothing about economics and only parrot what you see in liberal headlines. The deficit is most definitely a concern and one of the reasons Ryan lost the House. We need to encourage the politicians to quit spending money.
The GOP lost the House because of the deficit?