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Rubio and the Fool’s Gold Standard

WASHINGTON, DC - MAY 23:  Sen. Marco Rubio (R-...

While I generally like Marco Rubio he is dead wrong on immigration and now he is pushing another bad idea.

Not taxing Olympic athletes gold medals. Let’s follow the argument a little. They have worked really hard to compete in the Olympics? Yes. They are representing the BEST of the BEST in America? Well maybe. More likely they represent the best of the backed. If ever there were a class of achievers that fit hand-in-glove with Obama’s “you didn’t build that statement” it is Olympic athletes. The vast majority of competitors could not begin to train or compete without massive assistance from others. It begins with parents taking their children to practice and PAYING for practice. The kids with above average talent begin to separate from the other competitors. Depending upon the sport they are given TAXPAYER subsidized coaches and facilities and as their talent is further revealed the amenities also improve to facilitate training. Again, all at somebody else’s expense, be it a coerced into support TAXPAYER or be it philanthropist. They are often given allowances by parents or supporters or they get phony “jobs” where they can “earn” spending money. All of this so they can fulfill a four year old’s dream of gold.

Now let’s look at the real gold medal winners in society. The small business owner. They rarely have anybody to fall back on. They get up earlier than the next guy. They often work one job to support their family while sidelining in their small business until it becomes viable. Instead of being supported from outside they are carrying two loads. Instead of receiving TAXPAYER subsidies to facilitate their dreams they will be progressively taxed with an ever increasing burden as they begin to create a successful business. Make that three loads they must bear. If ever they manage to take their dream from concept to small business to large business they will be vilified by society and the political class. For all of their years of hard work they will be beaten down at every opportunity, taxed in a manner that makes government and the leeches of society the primary beneficiary of their diligence and hard work.

For the Olympic athlete, the supporters truly make the game possible. An Olympic athlete without somebody else’s money and facilities will go nowhere. (yes, there are some exceptions.) These supporters don’t condition their support on the delivery of any product or service. It is not an exchange of value for value. A coach may choose who he or she will train based on potential but not on an assurance of victory. The coaches are usually not paid by the athlete. A supporter or taxpayer foots that bill. Olympic committees chose who will be trained to represent a country on a hope of success. The supporters are an entirely critical component to victory. This is particularly true as competitors move up the path to participating in the Olympics.

No supporters, no athlete. If the athlete “leaves” the supporters pick a different athlete to back. Somebody else DID build that for them.

A small business has two types of supporters. Customers and employees. In the case of customers, they are not donating money to the small business. They do expect a fair exchange of value for value and if they don’t get it they go somewhere else. The small business person must develop a product or service that will entice people to make this exchange voluntarily. TAXPAYERS are not coerced into supporting small businesses. In most cases the small businesses are TAXPAYERS coerced into paying for freeloaders. Yes, as a small business owner, I can tell you employees are important in the operation of a small business. They range from the lazy to the top-notch and every small business owner wants to keep the top-notch. It is, however, very rare that any particular employee or group of employees are critical to the survival of a small business. If one or more leave, they are replaced and hopefully with as good or better. The business goes on. The employees are PAID to be there unlike Olympic supporters who are PAYING for a place at the table. The small business owner gets “paid” after everybody else gets paid, including the IRS. Employees, like customers, enter into an arrangement of value for value. They deliver a product or service to the business in exchange for pay in the same way the business delivers to its customers.

If the employee leaves he gets new employees. If the customers leave he refines his product or service to entice them back. Or he tries his luck in a different line. And he works that second job again.

If the small business Owner leaves, there is no business.

Small businesses create the vast majority of new jobs in America. They are the prime movers of innovation in products and services. The regular introduction of small business products and services provide a constant downward pressure on prices for goods and services. Small business is the essence of American liberty. It is people dreaming big things and doing big things without handouts from others or forced handouts from taxpayers.

An Olympic athlete spends typically 12 to 20 years preparing for a one-off or perhaps two-off chance for gold. If they are successful they will have substantial payouts in the form of professional careers and endorsement contracts. The entire economic output of an individual Olympian is gone after their BIG DAY with a few exceptions. It is a shiny bauble, Fool’s Gold.

Small business owners often labor for three, four or five decades before they get a chance for real success. When that success comes, the scum in DC and the leeches around the country will be waiting to suck the life out of them. A successful small business will generate economic output and pay dividends for generations.

Why is Marco trying to give one more handout to the group created almost entirely by handouts?

Where is Rubio’s bill to eliminate, or even greatly reduce, income tax on small business?

He might at least start the conversation.

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