creative tusk

On the same day the U.S. Justice Department is filing a lawsuit challenging the constitutionality of Arizona’s new law targeting illegal immigrants, Pinal County’s sheriff received death threats from the Mexican mafia.

Pinal Co., AZ Sheriff Receives Death Threats From Mexican Mafia

This was an email forwarded to me from my father. I’ve looked on snopes.com for my liberal friends that won’t believe it but even if it’s not an original letter, the message is the same…

I would like to start by thanking you for attending this meeting, though it’s not like you had much of a choice. After all, attendance was mandatory. I’m also glad many of you accepted my invitation to your family members to be here as well. I have a few remarks to make to all of you, and then we’ll retire to the ballroom for a great lunch and some employee awards.

I felt that this meeting was important enough to close all 12 of our tire and automotive shops today so that you could be here. To reassure you, everybody is being paid for the day — except me. Since our stores are closed we’re making no money. That economic loss is mine to sustain. Carrington Automotive has 157 full time employees and around 30 additional part-timers. All of you are here. I thank you for that.

When you walked into this auditorium you were handed a rather thick 78-page document. Many of you have already taken a peek. You were probably surprised to see that it’s my personal tax return for 2008. Those of you who are adept at reading these tax returns will see that last year my taxable income was $534,000.00. Now I’m sure this seems rather high to many of you. So … let’s talk about this tax return.

Carrington Automotive Enterprises is what we call a Sub-S – a Subchapter S corporation. The name comes from a particular part of our tax code. Sub-S status means that the income from all 12 of our stores is reported on my personal tax return. Businesses that report their income on the owner’s personal tax return are referred to as “small businesses.” So, you see now that this $534,000 is really the total taxable income – the total combined profit from all 12 of our stores. That works out to an average of a bit over $44,000 per store.

Why did I feel it important for you to see my actual 2008 tax return? Well, there’s a lot of rhetoric being thrown around today about taxes, small businesses and rich people. To the people in charge in Washington right now I’m a wealthy American making over a half-million dollars a year. Most Americans would agree: I’m just another rich guy; after all … I had over a half-million in income last year, right? In this room we know that the reality is that I’m a small business owner who runs 12 retail establishments and employs 187 people. Now here’s something that shouldn’t surprise you, but it will: Just under 100 percent … Make that 99.7 percent of all employers in this country are small businesses, just like ours.

Every one of these businesses reports their income on a personal income tax return. You need to understand that small businesses like our s are responsible for about 80 percent of all private sector jobs in this country, and about 70 percent of all jobs that have been created over the past year. You also need to know that when you hear some politician talking about rich people who earn over $200,000 or $500,000 a year, they’re talking about the people who create the jobs.

The people who are now running the show in Washington have been talking for months about raising taxes on wealthy Americans. I already know that in two years my federal income taxes are going to go up by about 4.5 percent. That happens when Obama and the Democrats allow the Bush tax cuts to expire. When my taxes climb by 4.5 percent the Democrats will be on television saying that this really isn’t a tax increase. They’ll explain that the Bush tax cuts have expired .. Nothing more Here at Carrington we’ll know that almost 5% has been taken right off of our bottom line. And that means it will be coming off your bottom line.

Numbers are boring, I know … But let’s talk a bit more about that $534,000. That’s the money that was left last year from company revenues after I paid all of the salaries and expenses of running this business. Now I could have kept every penny of that for myself, but that would have left us with nothing to grow our business, to attract new customers and to hire new employees. You’re aware that we’ve been talking about opening new stores in Virginia Beach and Newport News .. To do that I will have to buy or lease property, construct a building and purchase inventory. I also have to hire additional people to work in those stores. These people wouldn’t immediately be earning their pay. So, where do you think the money for all of this comes from? Right out of our profits … Right out of that $534,000. I need to advertise to bring Customers in, especially in these tough times. Where do you think that money comes from? Oh sure, I can count it as an expense when I file my next income tax return .. But for right now that comes from either current revenues or last year’s profits. Revenues right now aren’t all that hot … so do the math. A good effective advertising campaign might cost us more than $300,000.

Is this all starting to come together for you now?

Right now the Democrats are pushing a nationalized health care plan that, depending on who’s doing the talking, will add anywhere from another two percent to an additional 4.6 percent to my taxes. If I add a few more stores, which I would like to do, and if the economy improves, my taxable income … our business income …. could go over one million dollars! If that happens the Democrats have yet another tax waiting, another five percent plus! I’ve really lost track of all of the new government programs the Democrats and President Obama are proposing that they claim they will be able to finance with new taxes on what they call “wealthy Americans..”

And while we’re talking about health care, let me explain something else to you. I understand that possibly your biggest complaint with our company is that we don’t provide you with health insurance. That is because as your employer I believe that it is my responsibility to provide you with a safe workplace and a fair wage and to do all that I can to preserve and grow this company that provides us all with income. I no more have a responsibility to provide you with health insurance than I do with life, auto or homeowner’s insurance. As you know, I have periodically invited agents for health insurance companies here to provide you with information on private health insurance plans.

The Democrats are proposing to levy yet another tax against Carrington in the amount of 8 percent of my payroll as a penalty for not providing you with health insurance. You should know that if they do this I will be reducing every person’s salary or hourly wage by that same 8 percent. This will not be done to put any more money in my pocket. It will be done to make sure that I don’t suffer financially from the Democrat’s efforts to place our healthcare under the control of the federal government. It is your health, not mine. It is your healthcare, not mine. These are your expenses, not mine. If you think I’m wrong about all this, I would sure love to hear your reasoning

Try to understand what I’m telling you here. Those people that Obama and the Democrats call “wealthy Americans” are, in very large part, America ‘s small business owners. I’m one of them. You have the evidence, and surely you don’t think that the owner of a bunch of tire stores is anything special. That $534,000 figure on my income tax return puts me squarely in Democrat crosshairs when it comes to tax increases. Let’s be clear about this … crystal clear. Any federal tax increase on me is going to cost you money, not me. Any new taxes on Carrington Automotive will be new taxes that you, or the people I don’t hire to staff the new stores I won’t be building, will be paying. Do you understand what I’m telling you? You’ve heard about things rolling downhill, right? Fine .. then you need to know that taxes, like that other stuff, roll downhill. Now you and I may understand that you are not among those that the Democrats call “wealthy Americans,” but when this “tax the rich” thing comes down you are going to be standing at the bottom of the mud slide, if you get my drift. That’s life in the big city, my friends … where elections have consequences.

You know our economy is very weak right now. I’ve pledged to get us through this without layoffs or cuts in your wages and benefits. It’s too bad the politicians can’t get us through this without attacking our profits. To insure our survival I have to take a substantial portion of that $534,000 and set it aside for unexpected expenses and a worsening economy. Trouble is, the government is eyeing that money too … and they have the guns. If they want it, they can take it.

I don’t want to make this too long. There’s a great lunch waiting for us all. But you need to understand what’s happening here. I’ve worked hard for 23 years to create this business. There were many years where I couldn’t take a penny in income because every dollar was being dedicated to expanding the business. There were tough times when it took every dollar of revenues to replenish our inventory and cover your paychecks. During those times I earned nothing. If you want to see those tax returns, just let me know.

OK …. I know I’m repeating myself here. I don’t hire stupid people, and you are probably getting it now. So let me just ramble for a few more minutes. Most Americans don’t realize that when the Democrats talk about raising taxes on people making more than $250 thousand a year, they’re talking about raising taxes on small businesses. The U.S. Treasury Department says that six out of every ten individuals in this country with incomes of more than $280,000 are actually small business owners. About one-half of the income in this country that would be subject to these increased taxes is from small businesses like ours. Depending on how many of these wonderful new taxes the Democrats manage to pass, this company could see its tax burden increase by as much as $60,000. Perhaps more.

I know a lot of you voted for President Obama. A lot of you voted for Democrats across the board. Whether you voted out of support for some specific policies, or because you liked his slogans, you need to learn one very valuable lesson from this election. Elections have consequences. You might have thought it would be cool to have a president who looks like you; or a president who is young, has a buff body, and speaks eloquently when there’s a teleprompter in the neighborhood. Maybe you liked his promises to tax the rich. Maybe you believed his promise not to raise taxes on people earning less than a certain amount. Maybe you actually bought into his promise to cut taxes on millions of Americans who actually don’t pay income taxes in the first place. Whatever the reason .. your vote had consequences; and here they are.

Bottom line? I’m not taking this hit alone. As soon as the Democrats manage to get their tax increases on the books, I’m going to take steps to make sure that my family isn’t affected. When you own the business, that is what you’re allowed to do. I built this business over a period of 23 years, and I’m not going to see my family suffer because we have a president and a congress who think that wealth is distributed rather than earned. Any additional taxes, of whatever description, that President Obama and the Democrats inflict on this business will come straight out of any funds I have set aside for expansion or pay and benefit increases. Any plans I might have had to hire additional employees for new stores will be put aside. Any plans for raises for the people I now have working for me will be shelved. Year-end bonuses might well be eliminated. That may sound rough, but that’s the reality.

You’re going to continue to hear a lot of anti-wealth rhetoric out there from the media and from the left. You can chose to believe what you wish .. .but when it comes to Carrington Automotive you will know the truth. The books are open to any of you at any time. I have nothing to hide. I would hope that other small business owners out there would hold meetings like this one, but I know it won’t happen that often. One of the lessons to be learned here is that taxes … all taxes ….. and all regulatory costs that are placed on businesses anywhere in this country, will eventually be passed right on down to individuals; individuals such as yourself. This hasn’t been about admonishing anyone and it hasn’t been about issuing threats. This is part! of the education you should have received in the government schools, but didn’t. Class is now dismissed.

I was driving home last night and happened to hear the opening to the Michael Savage show. Now, most of you probably don’t listen to him, but he seems to have caught on to what’s really going on with the Obama Administration.

Last night he brought up Sinclair Lewis’ 1935 novel, “It Can’t Happen Here”. The novel was written as Hitler was on the rise.

Basically, the novel is about a right wing President, but the point of his opening was that much of this work sure sounds like the left wing today. Actually I’d say it sounds like either of the main parties in my opinion.

He read only a few of the points from the novel, but here is the entire list from that section of the book which reveals the platform on which Senator Windrip runs for the Presidency:

During the very first week of his campaign, Senator Windrip clarified his philosophy by issuing his distinguished proclamation: “The Fifteen Points of Victory for the Forgotten Men.” The fifteen planks, in his own words (or maybe in Lee Sarason’s words, or Dewey Haik’s words), were these:

(1) All finance in the country, including banking, insurance, stocks and bonds and mortgages, shall be under the absolute control of a Federal Central Bank, owned by the government and conducted by a Board appointed by the President, which Board shall, without need of recourse to Congress for legislative authorization, be empowered to make all regulations governing finance. Thereafter, as soon as may be practicable, this said Board shall consider the nationalization and government-ownership, for the Profit of the Whole People, of all mines, oilfields, water power, public utilities, transportation, and communication.

(2) The President shall appoint a commission, equally divided between manual workers, employers, and representatives of the Public, to determine which Labor Unions are qualified to represent the Workers; and report to the Executive, for legal action, all pretended labor organizations, whether “Company Unions,” or “Red Unions,” controlled by Communists and the so-called “Third International.” The duly recognized Unions shall be constituted Bureaus of the Government, with power of decision in all labor disputes. Later, the same investigation and official recognition shall be extended to farm organizations. In this elevation of the position of the Worker, it shall be emphasized that the League of Forgotten Men is the chief bulwark against the menace of destructive and un-American Radicalism.

(15) Congress shall, immediately upon our inauguration, initiate amendments to the Constitution providing (a), that the President shall have the authority to institute and execute all necessary measures for the conduct of the government during this critical epoch; (b), that Congress shall serve only in an advisory capacity, calling to the attention of the President and his aides and Cabinet any needed legislation, but not acting upon same until authorized by the President so to act; and (c), that the Supreme Court shall immediately have removed from its jurisdiction the power to negate, by ruling them to be unconstitutional or by any other judicial action, any or all acts of the President, his duly appointed aides, or Congress.

Addendum: It shall be strictly understood that, as the League of Forgotten Men and the Democratic Party, as now constituted, have no purpose nor desire to carry out any measure that shall not unqualifiedly meet with the desire of the majority of voters in these United States, the League and Party regard none of the above fifteen points as obligatory and unmodifiable except No. 15, and upon the others they will act or refrain from acting in accordance with the general desire of the Public, who shall under the new régime be again granted an individual freedom of which they have been deprived by the harsh and restrictive economic measures of former administrations, both Republican and Democratic.

…”But what does it mean?” marveled Mrs. Jessup, when her husband had read the platform to her. “It’s so inconsistent. Sounds like a combination of Norman Thomas and Calvin Coolidge. I don’t seem to understand it. I wonder if Mr. Windrip understands it himself?”

Later in the work, a character comments on what has developed in America:

In La Voix littéraire of Paris, the celebrated and genial professor of belles-lettres, Guillaume Semit, wrote with his accustomed sympathy:

I do not pretend to any knowledge of politics, and probably what I saw on my fourth journey to the States United this summer of 1938 was mostly on the surface and cannot be considered a profound analysis of the effects of Corpoism, but I assure you that I have never before seen that nation so great, our young and gigantic cousin in the West, in such bounding health and good spirits. I leave it to my economic confrères to explain such dull phenomena as wage-scales, and tell only what I saw, which is that the innumerable parades and vast athletic conferences of the Minute Men and the lads and lassies of the Corpo Youth Movement exhibited such rosy, contented faces, such undeviating enthusiasm for their hero, the Chief, M. Windrip, that involuntarily I exclaimed, “Here is a whole nation dipped in the River of Youth.”

Everywhere in the country was such feverish rebuilding of public edifices and apartment houses for the poor as has never hitherto been known. In Washington, my old colleague, M. le Secretary Macgoblin, was so good as to cry, in that virile yet cultivated manner of his which is so well known, “Our enemies maintain that our labor camps are virtual slavery. Come, my old one! You shall see for yourself.” He conducted me by one of the marvelously speedy American automobiles to such a camp, near Washington, and having the workers assembled, he put to them frankly: “Are you low in the heart?” As one man they chorused, “No,” with a spirit like our own brave soldiers on the ramparts of Verdun.

During the full hour we spent there, I was permitted to roam at will, asking such questions as I cared to, through the offices of the interpreter kindly furnished by His Excellency, M. le Dr. Macgoblin, and every worker whom I thus approached assured me that never has he been so well fed, so tenderly treated, and so assisted to find an almost poetic interest in his chosen work as in this labor camp–this scientific cooperation for the well-being of all.

With a certain temerity I ventured to demand of M. Macgoblin what truth was there in the reports so shamefully circulated (especially, alas, in our beloved France) that in the concentration camps the opponents of Corpoism are ill fed and harshly treated. M. Macgoblin explained to me that there are no such things as “concentration camps,” if that term is to carry any penological significance. They are, actually, schools, in which adults who have unfortunately been misled by the glib prophets of that milk-and-water religion, “Liberalism,” are reconditioned to comprehend the new day of authoritative economic control. In such camps, he assured me, there are actually no guards, but only patient teachers, and men who were once utterly uncomprehending of Corpoism, and therefore opposed to it, are now daily going forth as the most enthusiastic disciples of the Chief.

Alas that France and Great Britain should still be thrashing about in the slough of Parliamentarianism and so-called Democracy, daily sinking deeper into debt and paralysis of industry, because of the cowardice and traditionalism of our Liberal leaders, feeble and outmoded men who are afraid to plump for either Fascism or Communism; who dare not–or who are too power hungry–to cast off outmoded techniques, like the Germans, Americans, Italians, Turks, and other really courageous peoples, and place the sane and scientific control of the all-powerful Totalitarian State in the hands of Men of Resolution!

The novel also digs into religion and preachers buying air time, political “gangs,” youth, political advisers and all sorts of other things that sound eerily familiar. (Windrip’ appoints his political guru as Secretary of State: “his former secretary and press-agent, Lee Sarason, who also took the position of High Marshal, or Commander-in-Chief, of the Minute Men, which organization was to be established permanently, as an innocent marching club.”)

Project Gutenberg Australia has the entire novel online, <http://gutenberg.net.au/ebooks03/0301001h.html> so go over and scroll through it. I think you will be pretty amazed.

You might also find it very scary…

***

Background information on “It Can’t Happen Here”

http://en.wikipedia.org/wiki/It_Can%27t_Happen_Here

Editor: 

As I watch the coverage of the fate of the U.S. auto industry, one alarming and frustrating fact hits me right between the eyes. The fate of our nation’s economic survival is in the hands of some congressmen who are completely out of touch and act without knowledge of an industry that affects almost every person in our nation. The same lack of knowledge is shared with many journalists whom are irresponsible when influencing the opinion of millions of viewers. 
 
Sen. Richard Shelby of Alabama has doomed the industry, calling it a dinosaur. No Mr. Shelby, you are the dinosaur, with ideas stuck in the ’70s, ’80s and ’90s. You and the uninformed journalist and senators that hold onto myths that are not relevant in today’s world. 
 
When you say that the Big Three build vehicles nobody wants to buy, you must have overlooked that GM outsold Toyota by about 1.2 million vehicles in the U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in the U.S. GM was the world’s No. 1 automaker beating Toyota by 3,000 units. 
 
When you claim inferior quality comes from the Big Three, did you realize that Chevy makes the Malibu and Ford makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers. 
 
Did you realize Big Three’s gas guzzlers include the 33 mpg Malibu that beats the Accord. And for ’09 Ford introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford’s Focus beats the Corolla and Chevy’s Cobalt beats the Civic. 
 
When you ask how many times are we going to bail them out you must be referring to 1980. The only Big Three bailout was Chrysler, who paid back $1 billion, plus interest. GM and Ford have never received government aid. 
 
When you criticize the Big Three for building so many pickups, surely you’ve noticed the attempts Toyota and Nissan have made spending billions to try to get a piece of that pie. Perhaps it bothers you that for 31 straight years Ford’s F-Series has been the best selling vehicle. Ford and GM have dominated this market and when you see the new ’09 F-150 you’ll agree this won’t change soon. 
 
Did you realize that both GM and Ford offer more hybrid models than Nissan or Honda. Between 2005 and 2007, Ford alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars. 
 
It’s 2008 and the quality of the vehicles coming out of Detroit are once again the best in the world. 

Perhaps Sen. Shelby isn’t really that blind. Maybe he realizes the quality shift to American. Maybe it’s the fact that his state of Alabama has given so much to land factories from Honda, Hyundai and Mercedes Benz that he is more concerned about their continued growth than he is about the people of our country. Sen. Shelby’s disdain for “government subsidies” is very hypocritical. In the early ’90s he was the driving force behind a $253 million incentive package to Mercedes. Plus, Alabama agreed to purchase 2,500 vehicles from Mercedes. While the bridge loan the Big Three is requesting will be paid back, Alabama’s $180,000-plus per job was pure incentive. Sen. Shelby, not only are you out of touch, you are a self-serving hypocrite, who is prepared to ruin our nation because of lack of knowledge and lack of due diligence in making your opinions and decisions. 
 
After 9/11, the Detroit Three and Harley Davidson gave $40 million-plus emergency vehicles to the recovery efforts. What was given to the 9/11 relief effort by the Asian and European Auto Manufactures? $0 Nada. Zip! 
 
We live in a world of free trade, world economy and we have not been able to produce products as cost efficiently. While the governments of other auto producing nations subsidize their automakers, our government may be ready to force its demise. While our automakers have paid union wages, benefits and legacy debt, our Asian competitors employ cheap labor. We are at an extreme disadvantage in production cost. Although many UAW concessions begin in 2010, many lawmakers think it’s not enough. 
 
Some point the blame to corporate management. I would like to speak of Ford Motor Co. The company has streamlined by reducing our workforce by 51,000 since 2005, closing 17 plants and cutting expenses. Product and future product is excellent and the company is focused on one Ford. This is a company poised for success. Ford product quality and corporate management have improved light years since the nightmare of Jacques Nasser. Thank you Alan Mulally and the best auto company management team in the business.
 
 
The financial collapse caused by the secondary mortgage fiasco and the greed of Wall Street has led to a $700 billion bailout of the industry that created the problem. AIG spent nearly $1 million on three company excursions to lavish resorts and hunting destinations. Paulson is saying no to $250 billion foreclosure relief and the whole thing is a mess. So when the Big Three ask for 4 percent of that of the $700 billion, $25 billion to save the country’s largest industry, there is obviously oppositions. But does it make sense to reward the culprits of the problem with $700 billion unconditionally, and ignore the victims? 
 
As a Ford dealer, I feel our portion of the $25 billion will never be touched and is not necessary. Ford currently has $29 billion of liquidity. However, the effect of a bankruptcy by GM will hurt the suppliers we all do business with. A Chapter 11 bankruptcy by any manufacture would cost retirees their health care and retirements. Chances are GM would recover from Chapter 11 with a better business plan with much less expense. So who foots the bill if GM or all three go Chapter 11? All that extra health care, unemployment, loss of tax base and some forgiven debt goes back to the taxpayer, us. With no chance of repayment, this would be much worse than a loan with the intent of repayment. 
 
So while it is debatable whether a loan or Chapter 11 is better for the Big Three, a $25 billion loan is definitely better for the taxpayers and the economy of our country. 
 
So I’ll end where I began on the quality of the products of Detroit. Before you, Mr. or Ms. Journalist continue to misinform the American public and turn them against one of the great industries that helped build this nation, I must ask you one question. Before you, Mr. or Madam Congressman vote to end health care and retirement benefits for 1 million retirees, eliminate 2.5 million of our nation’s jobs, lose the technology that will lead us in the future and create an economic disaster including hundreds of billions of tax dollars lost, I ask this question not in the rhetorical sense. I ask it in the sincere, literal way. Can you tell me, have you driven a Ford lately? 
 
Jim Jackson 
Elkins