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Curmudgeon's Corner

cur-mud-geon: anyone who hates hypocrisy and pretense and has the temerity to say so; anyone with the habit of pointing out unpleasant facts in an engaging and humorous manner

Rite-Hite Letter to Employees

Political, Taxes, U.S., Employment, Economy

The following letter was sent to all Rite-Hite employees by its Chairman of the Board discussing the potential impact to employees of an Obama second term as he sees that.  Rite-Hite is a very successful local company that employs some 1,400 people most of whom are in the United States.

 

October 23, 2012                                                

To:                All US Rite-Hite Employees

Subject:        Upcoming Election


Dear USA Rite-Hite'er,


Every Rite-Hite employee in America should understand the personal consequences to them of having our tax rates increase dramatically if President Obama is re-elected, forcing taxpayers to fund President Obama's future deficits and social programs (including Obamacare), which require bigger government. 

Rite-Hite is a Subchapter S corporation for taxes, meaning that our corporate tax rate is the highest personal tax rate. So what? Well, our RSP contributions are based on AFTER TAX profits. The tax rate we pay is not 17%, as Warren Buffet would have you believe; with state taxes it is roughly 45%. President Obama has announced that our planned tax rate would increase to roughly 65%, reducing our after tax income by 36% and dramatically reducing, if not eliminating, your and my RSP contributions.

Of equal importance, instead of these profits being re-invested into Rite-Hite for future growth and profitability, the money will be sent into the abyss that is Washington D.C. So, on top of the burden of having your personal taxes increase dramatically, which they will, your RSP contributions and healthy retirement are also at risk, all for the sake of maintaining an over-sized government that borrows 42% of every dollar it spends.

The other big impact on Rite-Hite employees, if President Obama is re-elected, is the good chance of losing Rite-Hite insurance and being put into Obamacare. Employers have the choice (though competition in the marketplace will dictate), to continue their existing plans or to pay a penalty and have employees go into the Government Plan. Our plan costs much more per family than the penalty and hence the possible competitive need to drop the Rite-Hite Health Plan. Every opportunity to make up for lost profits to taxes will have to be evaluated.

Rite-Hite nor I will ever prejudice any employee for their political views, and, totally respect your right to vote as you choose. I simply am trying to present the facts as I know them and to protect the business you have helped build! Please think very carefully about your vote on November 6th. 

Sincerely, 

Mike White

Chairman of the Board and Owner

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