The following organizations have seen substantial contributions from my businesses over the last 2 decades. Most of these organizations sided with the “52″ this year.

I have informed each and every one, using (paraphrasing here, as each response was different, based on the exact activities) their behaviour as a guide, that we will no longer support their organizations.

The City Mission-shelters
The Food Banks
The United Way
American Cancer-Heart … etc … societies.

And a variety of other charities …

The basics of the letter I sent each …

*Dear Sir/Madam:

Ww have supported your causes for many years, but this year, we have declined to continue with our support.

The American people – or 52%, to be exact, have decided that business owners are the problem in our country, and we need to be punished with confiscatory taxes. We were even told that our current tax rate of 37.9 % by the Federal Government alone was not enough, and that we can expect the Federal government to start taking 50-60% of our hard work, in order to give our hard earned money to those who did not earn it.

Further, by voting against this increase, we were told by our newly elected president that we are “selfish”.

As the majority of the American People decided that government was the solution, and that private business was the problem, we are bowing to their wishes.

We wish you the best of luck in getting the required funding for your organization from the Federal Government.

Best Regards,

Craigpennsylvania*

Every business owner I know has severely cut back on charitable giving since 11-04. It is not going to be a good year for charities. Perhaps, in the future, there will be an appreciation for what businesses do for our communities. In the mean time, this is but one weapon we have to fight this trend towards socialism

The response I have gotten back from some of these organizatons led to a phone call. I heard many exclaim thoughts along this line:

I had no idea that the new taxes would hit businesses so hard.

Simple, Your understanding is quite incorrect. Obama started with a position that the upper income earners would see their rates go to 39.6% plus this income would be subject to Social Security taxes, which are 12.4 % when the employer’s portion is added.

When one considers the fact that anyone who is paying social social security at the current highest rate ($102,000 in 2008) will ultimately receive a NEGATIVE return on “investment” in order to fund the retirement for lower income earners, the tax Obama wishes to place on incomes over $250,000 is just that – a surtax.

He later said he would only go to 4% – which is 8% when the employer match is added.

This means the top rate would be at least 47.9 %.

Yes, during the 70′s, the top marginal rate was 70%, but all of the following was deductible, which isn’t today.

All interest payments, All Sales Taxes, All business Dinners, All Club Dues, The per child deduction … etc …

Much less income was subject to taxation, as so much was deductible.