Saturday, September 25, 2010

By All Means, Tax the Rich!

Go ahead, make their day. Fix it so that they don't spend money.

Aircraft maker Cessna will cut jobs after its parent company Textron (TXT) said new airplane orders were less than previously expected.

Textron said today that it will reduce headcount at Cessna while cutting its 2010 forecast for free cash flow from operations to $400 million from as much as $550 million.

The company didn't specify how many jobs would be cut, but Cessna will fire about 700 people in Kansas

Those rich bastards factory workers were making too much money, right?

HT: Melnick/Badger

16 comments:

J. Strupp said...

"While we are seeing solid performance in most of our other businesses, we have not yet seen a discernable improvement in business jet order activity," said Textron chairman and chief executive officer Scott C. Donnelly. "Therefore, we are taking further production and restructuring actions at Cessna."

This has nothing to do with top marginal rates going up. It has everything to do with poor sales. Again, it's lack of demand out there.

Besides, this tax increase should make Tea Party folks happy since it will generate more tax revenue which will help to close a portion of the budget deficit that they're so worried about. But it doesn't because, well, they're Republicans and Republicans are in the business of cutting taxes.

Dad29 said...

No s(*t? Poor sales?

Who BUYS those things, Struppster? Welfare queens? $80K/year middle-managers? Welders?

Nope.

The people who buy Cessna planes are people who have to PAY for them out of AFTER-TAX earnings (or before-tax, if corporate jets.)

IOW, "the Rich", who understand that as of next year they will NOT have the cashflow to buy one.

Amy said...

Again, it's lack of demand out there.

Yes. Do you have the money to buy a jet? Not me.

Proof liberals have no grasp of basic economic principles. I'm glad to know Obama's going to stick it to the plane makers.

LarryD said...

The basic principle is - if you want to kill economic activity, raise taxes.

Deekaman said...

Struppinator still doesn't understand. It's cut the spending and reduce the size and power of government. Energy and Education: Gone. No value. Energy regulation and oversite can be rolled into Commerce. Education to state and local. Others? Millenium Challenge Corp. WTF? Gone. Committee for Purchase from People Who are Blind or Severely Disabled. WTF? Gone. There's more. Lots more.

J. Strupp said...

"IOW, "the Rich", who understand that as of next year they will NOT have the cashflow to buy one."

Because their marginal tax rate is going up by 3% which is the same as they paid less than a decade ago? The same people who paid over 70% in the early Reagan years? The same folks who paid 91% during Eisenhower? The data does NOT indicate that this income class is making decisions based primarily upon the small increase in marginal tax rates they'll be paying next year (back to 2002 levels). This income class is making choices based upon future income prospects and/or current and future sales (if they're business owners). Good God, just read NFIB’s latest survey of business owners. The NFIB is about the most conservative friggin’ survey on the planet. Pay close attention to page 20 where business owners are asked what is the single biggest head wind facing their company right now:

http://www.nfib.com/Portals/0/PDF/sbet/SBET201009.pdf

You know better dadster. You've been around (my guess is that Amy hasn't yet). You read this stuff all the time. I’m truly sad that folks in the upper tax brackets have to decide between a new Cessna and putting food on the table for the family, but it ain’t because their taxes are going back up 3%.

J. Strupp said...

And I guess you can't read a chart either Deekaman. Everything you list is almost meaningless in terms of our long run deficit woes.

http://baselinescenario.com/2010/01/20/one-more-thing/

Who gives a shit about the Dept. of Energy. It's peanuts in comparison to our Medicare, medicaid problems. Obamacare didn't fix the problem so don't waste your time telling me about it (although it did manage to make the situation better in the long run in terms of boosting revenues). My point is that the new age deficit hawks (re-packaged Republicans) are wasting all this time on minor details without focusing on the elephant in the room.

Deekaman said...

No, Struppster....this is not about "the rich". This is all about screwing one segment of the population to buy votes from the people to whom you give that money. I, for one am as tired of "class warfare. In this country, one is not "entitled" to anything but their God-given rights and to what they EARN. No, I don't care about the poor and the starving children. Why? Because they are bleeding the rest of this country white. They are poor and hungry because somewhere along the line, they chose poorly. More than once.

I don't want the "evil rich" taxed to feed the bureaucratic beast. I want the bureaucratic beast cut down to size. Why is the Leftist answer to always tax more, rather than spend less?

Deekaman said...

OK. Kill Medicare, Medicaid and Social Security. I'm good with that. I'll pay for my folks and myself.

I can read, thanks. And I can think. So Bite Me.

Dad29 said...

Actually, Struppster, it's far more than three percent, as you know.

Capgains tax will go up; healthcare tax (no matter how you slice it it's a tax) will go up. Estate tax kicks in again.

And less deductions.

The super-rich won't worry; they never do and never will.

It's the $250K-$2MM/year earners who are NOT sitting on Kennedy/Heinz money who will cut back.

And they are forgoing the planes so they can pay ObamaCare prices for their employees, Struppster.

Jim said...

Why on earth would you kill Social Security? It has no connection to the deficit. It is entirely self-funded and one of the most effective and efficiently-run programs of all time.

Amy said...

In our income bracket, our taxes will go up by $2900/year. That's $242/month if you can't do the basic math.

I didn't think I was "rich", but my income is sure going to take a whollop.

What happened to Obama's promise not to tax earners under $250K? We make 1/5 of that and are going to get HAMMERED.

J. Strupp said...

Ironically, last week a Chicago economcs professor by the name of Todd Henderson wrote a blog entry bleating that his $450,000 income should not be considered rich because he barely had anything left in disposible income after private school tuition, piano lessons for the kids, savings, the mortgage and taxes on his 3 houses, etc. That blog entry has since magically disappeared but Brad Delong happened to write a response to Henderson and his response says it all about the argument that those poor people making $250,000 to $2 million a year are being treated unfairly by big bad Obama's plan too raise taxes back to the old days of 2002:

http://delong.typepad.com/sdj/2010/09/in-which-mr-deling-responds-to-someone-who-might-be-professor-todd-henderson.html

J. Strupp said...

"This is all about screwing one segment of the population to buy votes from the people to whom you give that money."

Ha that's funny. So the Obama Administration is intentionally screwing the people who bankroll his campaign in order to buy votes from the unwashed? Better think that one through some more.

Dad29 said...

Uh, sorry...

The Banks got their reward in TARP and "financial regulation".

The teachers give no matter what.

The Trial Lawyers also were rewarded in ObamaCare.

And the new GM donations are going (D). They were rewarded, too.

Try again.

J. Strupp said...

Bank moneys going GOP. The rest are in the bag no matter what. You still dont screw over the people who pay the bills.