Grooming your dog

A rather go getting couple decided to start a Dog grooming business. With little money to start with they managed to rent a store in a heavy traffic area. Their business plan called for an after tax profit margin of $50,000 per year on business income of $280,000. They set up their business as a Corporation to reduce personal litigation risk. Their experience in the dog grooming industry left them with a clear understanding to the craziness some dog owners can inject into a simple task and viewed incorporation as a necessity to protect their home. They felt 2 employees would suffice for hours of operation and work force needs. At peak times they felt 4 booths would do the trick. Although the $25,000 each would receive from the business seems small they felt the first year of establishing their business required modest reward. Both were quite proud of their employees and very happy with their work. One employee was a recent emigrant named Jaun and the other was a single mom with two small children in transition from welfare. They provided the young mom with training and she soon was a key asset to their business. The young man from Mexico after overcoming some language problems became a productive worker as well.

Surprised by higher than expected quarterly tax payments and mandate outlays for FICA, income, unemployment insurance, and workmen’s comp after 90 days of operation they were forced to raise their price for grooming from $22.50 to $30.00. Although they didn’t wish to push the higher end of market prices they felt they had little choice. To compensate somewhat they reduced their after tax profit margin to $40,000. Now they worried if their higher prices would stifle business revenue; only year end would tell the story.

Well good news for the couple, their adjusted business plan worked out and they saw an after tax profit of $42,000 the first year. They then met the reality of their personal taxes, mostly benevolent regressive state and local taxes, they were shocked at how little they had left in disposable income. Things were tight but the business was viable and both were prideful of what they had accomplished. By year end the business was still growing and things were looking up.

Their dreams were soon crushed. The State budget wasn’t balanced; local taxes were going up by more than 15%. Public employees and many other dependents on tax payer largess cried and protested that “any cuts would not be from them”. “Businesses they say must be made to pay”. State house tax connivers raw from fights with the tavern league and seeing an increase in welfare related costs from excessively increasing tobacco taxes did not want to see an increase in the usual sin taxes. Higher fuel prices made worse from FED inflationary policy ruled out higher fuel taxes. The couple informed their employees that the uncertainty of government action has forced them to hold off on the $1 pay raise they planed for them but when things stabilize they were sure they could raise their pay. Then some bright legislator got the idea that Dog Grooming was a luxury for the rich. A $10 excise tax was quickly slapped on to the evil dog grooming industry that caters to the filthy rich. The dogma and rancor sold the tax to the majority of citizens.

The couple’s business revenue fell off as many customers refused to pay the higher prices the business was required to collect for the government. The business soon folded. Juan scraped up money and moved to California to work the celery fields. Mattie the single Mom is back to being a ward of the state her children’s future in doubt. The couple is subsisting on early Social Security the husband qualified for as he reached 62, they lost their home last month. $200 million was raised from the tax by businesses that were able to glean it from filthy rich people still able to afford dog grooming. Most of the larger grooming establishments and chains survived but were forced to lay off staff. Unemployment has run out for unemployed staff. The unemployment checks, food stamps and new welfare costs went up by $350 million costing the state $150 million more than new tax took in.

Some would just like some to open their eyes and realize we all ride the business gravy train. Successful businesses feed us “all” no exceptions. When dogma turns dog grooming into groomed political blindness please step back and look. Business taxation policies of our governments stifles job creation, reduces competition, and increases consumer costs hurting the less fortunate the most. All business taxes are in reality regressive consumer taxes collected by business on behave of governments without compensation for those businesses. Yes there are evil businessmen as there are evil people in every group and strata of our nation. Again please do not label and attack an entire group to serve your political rancor and needs. Only a truly bigoted person labels an entire group. It is in all our interest that business in America is successful. Class warfare is a nasty business that requires many to cut off their nose to spite their face. We do not have to engage in class warfare even though power hungry leaders seem to force the (us and them) on us to divide us for political gain.

Self righteousness is a fault “all” us humans carry, we must overcome this bigotry based insanity gleaned from decades of  socialist propaganda and dogma. I wonder if Juan has gleaned the celery fields yet. I heard he joined the UFW out in California. He is busy trying to reform some of its groomed members. I really don’t know why he has a new or different understanding than them, the ungrateful SOB. His counseling and rhetoric are truly open and full of human understanding and acceptance. Because of his well rounded take and understanding (always looking at both sides) fellow union members began calling him “Honest Juan” but he told them he resented that name and never said why. The couple must have told him of their troubles and subverted his natural position in life. He will have to be purged from the union, naaa he might start a business and really become a complete turncoat to be vilified. (Based on a true story)