Joe Plumber: What he Doesn’t Understand

Meet Joe. He is a plumber whose business is earning $250,000 “taxable income”. (remember that. We will come back to it.) Now without actually seeing the change to the code proposed it would be hard to tell how much that is going to affect “Joe”. But when Joes says, “Why aren’t people calling my plumbing service anymore?’ Because they are broke Joe. Their houses sit vacant, and they have plenty of time, since they are unemployed, to snake their own drain.

As I had mentioned in earlier post, no business considers tax cuts as reasoning to hire new employees. The Feds might give you a 2% cut, but the local and state government might raise it 3%. No Joe hires because he has so much work that he and his current employees can’t cover it with overtime. But is people don’t have jobs or money they can use to hire a plumber, all the tax cuts for big business in the world won’t help Joe.

Joe, Joe, now look at me Joe. Look me in the eyes. I don’t want you to miss this. You are a dammed liar. You call that “your money”. You know what your tax rate is before you bill. You figure that expense into your bill. That money was never yours. When you fill out your bill at the end of the day, why do you take the money of your poor customer? Money that you figured taxes into when you generated the bill. So don’t tell me that the government is taking your money.

Here is what Joe didn’t tell you. He is driving a brand new $75,000 fully decked out Silverado that you the tax payer paid for. See when he did the taxes at the end of the year he pulled a trick that George Bush allowed by expanding a loophole. (My Uncle who is a plumber did this after I told him about it.) Tax Code 179 "the rapid depreciation break" allows people to completely right off the cost of a utility vehicle over a certain tonnage. Of course, he can only use it as a "business vehicle." I got $3000 for my hybrid. Joe also didn’t tell you that he has 2 employees working under him in a 1099 environment so he doesn’t have to pay vacation, health benefits, payroll taxes, and contractors insurance. He also doesn’t mention the “illegals” he has hired from time to time when the need suited him. That all comes out of his “Taxable income”. So in reality he doesn’t pay for many of the things we have to in day to day life. He writes them off. That means us little guys have to pick up the slack.

What I would like to know is if Joe would mind parting with his “hard earned money” if he know it was going to hire more teachers for his kids school, test more food that his family consumes, paves the roads in front of his house and business, ensure the drugs his doctor prescribes are safe, ensures the planes he fly to Disney land with his family are safe, and pays for a veteran to go to a decent hospital? These are the things taxes pay for. Obama missed an opportunity when “Joe” asked him that question.


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