Haunted House: The White House Gets Top Spot

According to Rasmussen Reports who provides daily updates on the Presidential Approval Index, Barack Obama’s index is sitting at a minus 20!

Of those polled, 21 percent approve of the job he’s doing and a whopping 41 percent disapprove—that makes for one scary “haunted house.”

Here’s where I feel sorry for this ghostly leader. Sure it’s his job to listen, guide, veto, make decisions and he’s the one who must stand in front of the microphone and tell the country what’s wrong, why and what he plans on doing about it.

But it’s not always so easy in a house divided, meaning the Democrats and Republicans.

There are the Occupy Any Street protesters and they don’t help—heck they really don’t even have an agenda but they sure do like making signs.

And, in my opinion, the true dislike of some top Democrats for some of their Republican colleagues and vice versa doesn’t help either—it makes our country look like it’s being run the Three Stooges—only there’s way more than three.

Anyone who feels one man (or woman) runs the United States is a fool. Barack Obama, nor any other President before him) can’t be the end all of every problem our country faces.

Yet, the same congress and senate folks get voted back in time and time again by their constituents. This tells me the average American is pretty clueless about politicking, how it works and how to make a change.

Everyone always makes fun of New Jersey but then again, with TV shows like Jersey Shore, maybe they like making fun of themselves.

When Republican Chris Christie defeated Democrat Jon Corzine in the 2009 gubernatorial race, I for one was pretty surprised as New Jersey has always appeared as a blue (Democratic) state. But the folks in Jersey stood up to this Governor’s Haunted House and said, we are sick and tired and don’t want to take it anymore—they switched the party they held most dear and voted Christie in.

This is what Americans need to do. We can’t continually vote in the same people over and over again if we expect change, fresh ideas and above all, end the standstill Washington has become today.

I for one, however, will be 100 percent surprised if this feat is accomplished because people don’t vote smartly or informatively—they are too lazy to read about the issues and make the right decision. Too many vote for their party leaders and never switch or vote on the recommendations of friends and family members—not a smart way to vote.

So, what’s the easiest way to fix this Haunted House? Term limits and once you’ve reached your limit, you must beg away and let two others fight it out for your spot.

Why is this so hard for the American public to see? But alas, we too are not the ones who can vote on term limits—only those elected can and they are not going to set limits on their jobs and career. I mean would you? Say you earned your law degree, passed the bar and were told you have four years to be a lawyer and then you’re simply voted off the island and must change careers? Would that make you happy?

What we can do is vote for those who approve of term limits and only hope they can push their way through the big, thick, ugly walls that separate the new and the young from the old and the “we’ve always done it this way” folks who now run Washington.

The 2012 race is not going to be pretty. The Republican debates are already ugly and the confidence in America is at an all-time low.

How would you fix this Government? Surely not by the disorganized effort from the Occupy Any Street group!

*********

Source: Rasmussen Reports

Chris Christie image from Wikimedia

Occupy Any Street: What’s the Message?

It all started with Occupy Wall Street and the protests and marches have spread to almost every major city including Austin (where I live), Oakland and the debacle in Atlanta where SWAT teams intervened.

I’m not quite sure of the message here. What is it? I understand people are angry there are no jobs and they want and need jobs. I understand many folks have lost their homes, ruined their credit scores and need jobs to rebuild.

What I don’t understand is the mixed message those who are “occupying” are sending. Pick a cause—any cause—you can’t march, protest and make signs that boast how Uncle Sam wants you to protest Wall Street. I’ve seen the sign where a man pasted a dollar to his mouth and says he could lose everything for having a voice. There are signs with the White House in the background and the words on the sign—sold to the highest bidder. The one I like best? I’m so angry I made a sign!

Again, I’ll say what is the message here? Are you tired of it all and just can’t take it anymore? If so, what exact things are you tired of? The politicians you voted in? If so, vote them out.

And, dare I say, some protesters simply joined Occupy “Any” Street because they are people who do this all the time, no matter what the cause.

When I lived in New Mexico, and I won’t mention where, a man who was loaded with cash didn’t work (I like to call these folks trust fund babies.). What he did do was protest—everyday—on almost any subject.

He’d protest at one end of town at a gas station holding signs blasting the gas station was a rip off and folks should go to such and such to get their gas. He was never really clear why he thought the gas station as a rip off, but he did it anyway. He did this at many gas stations too (all of them in fact) so was he really just protesting gas?

He protested in front of hotels who he felt had unfair employee practices. He protested in front of the animal shelter during the winter with signs showing the expected nightly temperatures so people would bring their animals in (I actually liked this protest).

He really didn’t need one cause, he had many. This is what I get from Occupy Wall Street or Any Street.

Those who have the power to take your message further will help your cause if you’re organized and if you have strong leaders who make sense. Not Joe somebody who tapes a dollar to his face.

Unfortunately, if you want people to take your causes (whatever they are) seriously, you need a manifesto so to speak. A list of wants, a list of dislikes and above all—some professionalism please!

Those who marched for the Civil Right Movement had a clear cause. Those who march in gay pride parades have a cause. What are your complaints exactly?

Your protests may end with some of you being arrested but that will surely fade away because it’s unclear to many of us why you’re out on the street.

It seems these streets of protests are going in many directions depending on the “street” and the town where it sits.

I’d like to see this better organized. What do you think?

BNET's Penelope Trunk Disses Steve Jobs

There are many reasons why people follow and read articles and blogs by Penelope Trunk and if she’s a business expert, I’m Angelina Jolie.

I held my breath when she talked about the why business startups shouldn’t hire people with graduate degrees. I held my breath when she talked about how 9/11 made her a better entrepreneur. I held my breath when she wrote about starting a business and then selling it for nothing, but now as she disses Apple’s Steve Jobs, I’m a little disgruntled—well actually I’m feeling something more, but I want to keep my blog clean.

In her post, The Steve Jobs Anti-Eulogy she does seem to agree Jobs gave the world so much but is basically tired of all the hoopla and wants to move on already—or in her words, “I think the hoopla about him is over the top.”

Trunk talks about why so many are writing and reporting on Jobs because they basically want to talk about themselves. Really Penelope? If you read Ms. Trunk’s pieces, all of her links go to past blogs or articles that have nothing to do with the topic she’s writing about (so self-promotion is something you adore Ms. Trunk).

She then goes on to say that “individuals do not make history. Populations do.” Well in that case Ms. Trunk, if you need to take an extended leave from BNET, we won’t miss your “individual” input.

Trunk next tells us how “you can tell a lot about a society by the people they honor.”  And, points out “But I think a list like that — honoring great inventors and philosophers — is just as shallow as honoring the war heroes.” Wow Penelope, for real? I bet she wrote a report about Hitler as a kid.

Finally she ends up dissing those who were proud to talk and know Jobs and says, “Trying to be unique by saying you talked to Steve is just a symptom of the larger problem: the fetishizing of being a special genius.”

I guess if I’m complaining about her insights (or lack of intelligent insights) it must mean she’s doing her job—what I mean by this is I seem to read her stuff albeit it leaves me angry almost each and every time!

Yet again, Penelope, Steve Jobs’ death may have brought on too many articles, blog posts, television snippets and more, but I for one, would rather hear about Jobs than Paris Hilton, Lindsay Lohan or even Michael Jackson—whose death was to me way over the top where the much better actor Elizabeth Taylor was slighted in the media.

Sometimes Penelope, you just don’t get it right, but I guess that’s your point isn’t it?

Now Michele Bachmann Opens Mouth and Inserts Foot

This one is hard to believe and what it has to do with business facts or fiction I'm not sure but I just couldn't pass up writing about this one on my blog!

I love the magazine Vanity Fair if only for its reminder of old money, old Hollywood and yes I like to rub my body in the pages full of cologne I can't afford!

But in the November 2011 issue Ms. Michele (My Belle) told Craig Brown a little bit about her favorite heroes. Here's where I must say she opened her mouth and inserted her foot worse than anyone I've heard or probably will hear in the future.

On Elvis Presley (a hero) she says "I find it interesting that it was back in 1977 that Elvis Presley passed away: under the presidency of Democrat Jimmy Carter. She also reminds us "the late, great Jim Reeves" passed away under "Democrat Lyndon B Johnson's." She goes on to say: "I'm not saying that countless of thousands of great American singers are due to die if we re-elect the Democrat President Obama. I just think it's an amazing coincidence." What? Is this woman on crack?

Another hero of hers is Norman Bates of the Alfred Hitchcock thriller Psycho. She says of Bates, "Here is a salt of the earth guy who tends to his mom as well as single-handedly running a small family business. And what do the liberal elite call him Psycho! Can you believe it?"

OMG and WTF people and sorry about the swearing here. All I can say to Ms. Michele is you need to be exercised by your hubby. I hear he's good at exorcisms. Someone save this woman from herself and from all of us and please do it quick!

NBC’s Today Show Hammers Car Dealerships Unfairly

I must say here folks, I love NBC’s Today Show, well at least I used to. Not anymore, not after today’s episode of “Today.” Bye bye and welcome Good Morning America!

In a report they called “Are dealers charging for unnecessary car repairs” I’ve got a complaint or two and while I’d like to post a comment or object to the (in my opinion) inaccurate and poorly researched story, 

NBC offers no public comments on their website. You can Facebook “like” the story, but there was no liking coming from me at all! Here’s why.

First off, reporter Jeff Rossen (who is supposed to be an investigative reporter but gives all investigative reporters a bad name) offered up an expert – an independent auto technician who was a certified mechanic by two major organizations. What organizations were those Jeff? ASE? ASE so you know has over 10 knowledge areas so how do your watchers know which areas he was certified in? Was he even certified in air-conditioning and electrical? Also, the mechanic has a Triple A on his uniform—if there is certification from Triple A, it’s simply because the shop passed a “cleanliness” inspection.  So right off the bat, I don’t trust your expert already.

The scenario was for the “expert” mechanic to making something wrong with one 2007 Jeep Cherokee. The expert removed a switch making the A/C system blow only warm air and told Rossen, his shop would charge $100 to replace the switch.

Next, Rossen and his undercover producer visited Chrysler/Jeep dealerships to see how much it would cost to diagnose and repair the broken switch.

The six dealerships charge between $270 and over $2,000 to fix the switch (the one charging over $2,000 was obviously a not so trustworthy dealership).  Most were in the $270 to $350 range, however.

Let’s take a look at this 2007 Jeep Cherokee – it had over 40,000 miles on it and was no longer covered under the manufacturer’s warranty (perhaps the owner should have bought a Chrysler Service Contract) that would have cost almost nothing at the time the vehicle was purchased, but I digress.

The expert doesn’t offer how he’s breaking down his $100 repair bill. How much was the switch (part) and how much was his labor? Rossen mentions (and I absolutely hate this) that dealerships always have a higher labor rate than the independent shops. This is not only untrue; it’s poorly researched again by Rossen.

The two dealerships I’ve owned (Chrysler decided to close mine down because they were what Chrysler/Fiat were allow to call useless assets) could only charge labor rates set by the Chrysler Corporation. Independent shops have no limit to what they can charge. I called 3 independent repair shops in Austin Texas where I live and all had between a $90 and $93 per hour labor rate. I then called three Jeep dealers in and around Austin and their labor rates were $72 per hour, so recheck your facts sir.

Next Rossen talks about how some of the dealerships offered free inspections to see if the vehicle had any other problems and yes, some did find problems. Folks, the car has 40,000 miles on it and Rossen failed to mention if the Jeep had ever received the recommended 30,000 mile maintenance required by Chrysler in the owner’s manual that comes with the vehicle—poor reporting again Mr. Rossen.

Finally, Rossen goes on to say since dealers aren’t selling cars, they are looking to their service departments to make the money. Wow really Mr. Rossen? How much do you really know about the auto industry? The profits made on selling new cars is not the meat and potatoes of the dealership industry. It is the service and parts department and in fact, it always has been.

Sure, there are dishonest dealerships out there but to sway your watchers in this way, you are only hurting them. Why? You also forgot to mention if your “expert” was using a Mopar, Chrysler switch or if it was an aftermarket switch that came with no warranty. If an independent shop places an aftermarket switch in, not only are warranties not always available or are slim to none, an aftermarket switch can indeed affect other elements of this vehicle, making other parts fail.

Today’s vehicles are so computerized, the components inside them work together for a reason. Car maintenance schedules are there for a reason, so big, expensive repairs can be avoided down the road. And, dealership technicians are often treated as crooks (so unfair folks).

Boo hoo on your Mr. Rossen. I say to NBC, strip his investigative reporter title away. Perhaps he better go back to copy editing.

Because I want others to see how blatantly wrong this report was, here’s the video link.

Get Ready for Holiday Toy Shopping: Shop at Walmart

Even if you hate the big box chain Walmart and the principles behind where they purchase their wares to sell and how they pay employees, when you get ready for holiday toy shopping this year, shop at Walmart. Why? According to Bloomberg, Walmart is beating out Target, K-Mart and even Amazon.com on some top toy picks including Elmo gems and Leapfrog toys.

When comparing prices, Walmart has been lower in some cases by 12 to 13 percent and because money is so tight these days, you can bet the farm shoppers will invade Walmart like zombies in the Night of the Living Dead.

Both Walmart and K-Mart do offer layaway services but you won't find any layaway options at Amazon.com or Target (Target's sister company Best Buy will offer layaway options, however).

I'm not fond of Walmart and its not because they are a big box store, there are plenty of these to go around The reason I'm not so fond of them is the way they lean toward hiring part time workers to avoid paying benefits or cut the hours of long-term employees to take away their benefits. If you do achieve the benefit platform at Walmart, it's often too expensive to afford so what Walmart is really doing is keeping prices low because they are screwing their employees.

So get ready and toy shop at Walmart if you want the cheapest prices this holiday season, but if you want to stand behind moral principle, shop somewhere else.

NFIB Grades Small Business Laws

The National Federation of Independent Business (NFIB) is a must-subscribe to magazine if you are a small business owner! Joining the NFIB is also an inexpensive way to stay up to date on industry topics that affect you and your business.

As usual, in their September/October issue, they pound out what they call their "Scorecard." Below is a synopsis of how NFIB is grading small business laws and acts - any or all may affect you!

FUTA Tax Act - This law has been in place since 1976 and allows employers to make a quarterly deduction of two percent from employee's paychecks and in June of this year, the government voted to continue this allowed deduction. Instead of the employer paying the entire four percent due each quarter, this allowable deduction allows the employee to share the burden on funding Federal Unemployment Tax! (Grade: A!)

Mandatory Sick Leave - Yes, you read it right! Just like Connecticut, this past July Massachusetts wants to force the small business owner to offer paid sick days. Great another expense we can't afford! (Grade F!)

Kiss U.S. Representative David Schweikert on mandated health care! - Schweikert introduced the Small Business Health Relief Act in July. What this bill proposes is to take out the "most egregious provisions" in the recent Health Care Bill the Obama Administration fleshed out. The way the bill stands now, every small business owner would suffer! (Grade A!)

Kudos to NFIB once again and don't forget to check them out online!

Joe Biden: Shut Up Already!

On a visit to Flint Michigan to support Obama's Jobs Bill, Vice President Joe Biden once again, opened his mouth and inserted his foot!

According to the Fox Nation, Biden said this:

"In 2008, when Flint had 265 sworn officers on their police force, there were 35 murders and 91 rapes in this city," Biden said. "In 2010, when Flint had only 144 police officers, the murder rate climbed to 65 and rapes--just to pick two categories--climbed to 229. In 2011, you now only have 125 shields. God only knows what the numbers will be this year for Flint if we don't rectify it."


Okay Joe, I understand you're probably talking about more law enforcement jobs, however, in the Jobs Bill I read, it called for job creations in the areas of road building and other construction-related jobs - education too. No where did I read anything about more police officers for Flint Michigan.


This is a scare tactic folks and one that comes right after Biden told Meet the Press he and Obama are the underdogs in the 2012 Election race.


I wonder if President Obama cringes each time Joe stands up on a platform and well, starts talking about his platform, which may not be the "joint" platform. Here we go folks. The lashing out has begun full force and this is a low blow Joe. Don't put the fear of God in people to get votes. It doesn't sound pretty and if anything, these comments will only remind people why they need to vote you out.

Would James Harrison Drink Dr. Pepper Ten?

Dr. Pepper is now a manly man's drink, well at least that's the goal behind Dr. Pepper Ten. The Dr. Pepper/Snapple Group is introducing this 10-calorie drink because apparently when you are down a few billion cases in sales, you need to step up and do something so why not focus on the male population?

As a Pittsburgh Steeler fan (and no I'm not one of those fans who only like them because they've got SIX Super Bowls titles; I was born there, grew up there and I love the Steeler Nation). If you love NFL football have you noticed how many fans are now Green Bay Packer fans since they won the Super Bowl last season? I swear people, don't be a fan just because the team you really like (even if it's Cleveland) can't win the big game - be faithful and maybe your team will get to the big game someday. But I digress.

So, I'm wondering with all the manly, man commercials Dr. Pepper Ten is putting out, would James Harrison drink Dr. Pepper Ten? Often called the meanest man in the NFL (but he likes that title), I just can't see it folks.

I can see a conversation between, Tony Romo and James:

"Jimmy boy, have you tried this stuff?" asks Tony?

"Just lie down on the turf dude, I intend to pound you down there all day any way so sit down and shut up already," warns Harrison.

And that would be pretty much it. James Harrison is not going to drink Diet Soda Pop!

I guess the makers of Dr. Pepper Ten think men will buy it because the can is in gunmetal grey and there are silver bullets on the can. What do they think these men are going to do when drinking this - kill a Werewolf?

Retailers will do just about anything to get you to buy their product offerings but this is going way to far.

Where's linebacker Ray Lewis when you need him? "Shut up and play he'd say." For sure, Ray, for sure.

Sunday Truth Topics: Why Occupy Wall Street Won't Work and Other Amazing Facts

It's Sunday folks and the start of a new week (or the end of a weekend, whichever way you look at it). A couple things stood out this past week namely Occupy Wall Street (OWS) and the growing protests around the country.

I believe in this movement but I'll tell you why it won't work in America. Our government leaders praise upheavals such as this as long as they're not on American soil.

When protests (also riots) in Egypt led to the resignation of Egypt's President Mubarak, the world cheered with these downtrodden folks, even top political leaders implied it was a great way for these depressed folks to get want they wanted.

In Tunisia when protesting and yes a revolt of sorts forced the resignation of Zine Al Abidine Ben Ali, it was cool, awesome and a victory for Tunisians everywhere.

In America, however, our leaders don't want us to speak our mind or protest much like the doings of OWS and its supporters. They send in riot police and consistently tell news reporters "this won't work" and "there's a better way" when in reality there is no better way than for some of us to step up, shout out, make signs and all in all, it's been a peaceful protest that Washington (and Wall Street) wants to stop and that's unfair.

What these leaders are saying is: It's okay for the poor countrymen and women in the Middle East to protest unfair government but it's not okay to do it here. They are more on the lines of, you hired us to fix the economy so we will--but they aren't and that's where the problem lies and in the long run, because our city and town leaders are being encouraged to play down and disapprove of the OWS movement with threats of pepper spray and scary law enforcement all around, our political leaders will win and OWS will just fade away--if we let it. If you agree with me, don't give up and hang in there.

Today, on the TV show Meet the Press, Mayor of Chicago and former White House Chief of Staff for Obama, Rahm Emanuel was interviewed. He praised the Obama administration for bailing out the auto industry and how now it's better than ever. Really Rahm? All the Auto Czar (as I like to call Obama) did was allow Chrysler and General Motors to get rid of useless assets (meaning close down dealerships) and business owners, their employees and dreams are NOT useless assets so Emanuel needs to rethink this statement and stop using the auto industry as an example of success. Why don't you look into the suicide statistics of closed dealership owners Rahm? Or bankruptcies? Now there's some cold hard fact folks.

Emanuel also went on to say "I don't create jobs, the President doesn't create jobs." He said what they can do is "create conditions" so private industries can create jobs. Nice Rahm, passing the buck again.

The war between the Republican and Democratic leaders is so embarrassing right now, and they can't seem to work a few weeks without taking at least a month off because being a politician is SO stressful, why not give them long-term leave and shut down the House and Senate entirely (this means no pay or benefits of any kind for our leaders as well).

Sure keep open up the departments who actually do things like send out Social Security benefit checks, etc, but as far as the decision makers go, since they are making no decisions at all, let them take a long-term unpaid administrative leave for once and see how they like it. Oh and no unemployment benefits for them either. I wonder how long it would take some of these folks to join the OWS movement once they had no job to go to?

These are my truth topics for Sunday and while I would love to be more positive about our government, it's really hard to these days and many of us right now are not Proud to Be Americans.

Have a great week and don't forget to bookmark this blog and check in daily.

Finally, learn more on why tax credits won't help the small business owner in a post I wrote for the must-visit website Bright Hub. (http://www.brighthub.com)

Joe Biden Opens Mouth, Inserts Foot

Just when you think the Washington spin doctors have tamed VP Joe Biden, he opens his mouth and yes, once again, inserts foot.

On NBC's Today Show in their Decision 2012 segment this morning, Second in Command Joe called he and Obama "underdogs" in the upcoming race foreseeing an easy takeover of the White House by any GOP candidate. (I do hope Sarah Palin did NOT hear this statement).

Some political experts say this may be just a ploy or strategy for re-election purposes--you know, "we're the underdog" and "we get no respect" and "vote for us" and "yes we can for real this time."

The President already has problems when it comes to damage control after Biden says almost anything but some Americans may think this underdog statement means a throwing in of the towel so to speak: "Well we thought yes we can, but we can't and so, we apologize and bye, bye."

The Jobs Bill (in my humble opinion as a business owner for many, many years) has some (but few) good elements but the whole package is a joke. It's not going to help small business owners unless they are contractors, educators or can build some sort of bridge or road, meaning Joe the Baker is out, out and way out. I'm not saying we don't need these things, but what about help for all the other small businesses out there? Not every small business owners wears hard hats, had a Bobcat or can offer educational services.

If the Jobs Bill does pass, I sure hope for businesses attempting to qualify for a tax credit or aid or a loan from the proposed new private investor bank, that the red tape Obama says will be cut, will indeed be cut. I don't think that will happen though folks. I keep remembering Cash for Clunkers--while this may have helped the sale of more cars in America, the red tape for dealerships trying to get those Clunker rebates was wound so tight it took months to receive needed cash and as we all know, the small business owner can't operate with receivables 120+ days past due. I expect the forms, paperwork and the wait will be the same for the Jobs Bill too. This  means too many that may qualify will have form after form to complete and after completing all these forms, some may not even qualify for any help at all!

There's gotta be a better way here folks. Red tape and bad elements within the Jobs Bill makes me believe the chances of it passing as a whole is a no-go, but as the Prez said in his press conference on October 6 2011, he's willing to take portions of the Bill and go forward if Congress won't pass the Bill as is.

Jeez, even the President isn't confident, but then again, His Man Joe does say they are indeed "underdogs."

Why Small Business Owners Cheat: Because They Can!

Unite and Unite Some More!

Solidarity Forever! So says the “About Us” web page on OccupyWallStreet.org (OWS).  Here’s a  quote, taken from the OWS website: “The participation of every person, and every organization, that has an interest in returning the US back into the hands of it's (sic) individual citizens is required.” (Need a little proofreading here I think, but I digress). I like this group and it’s spreading so if you’re interested, visit their web page or check the Internet—most likely there’s a gathering (or protest) in your city. Linda Richter of Bright Hub wrote a nice piece on OWS and it’s a great read and discusses how this protest is spreading across the nation—coming to an arena near you, etc.

The Greedy (and Smart Business Owner)

The SBA offers some FAQs on what constitutes a small business and offers up that a small business is any business employing 500 people or less. In any event, the SBA says these firms account for 99.7 percent of business in the United States.

More realistically, I would harbor a guess that a small business is a business that employs 25 people or less and that figure is more likely around 50 percent of all businesses because to me, 500 employees or less does not make a small business.

In this first post on Business: Facts and Fiction, as a former business owner, I want to talk about the greedy (and very smart) small business owner.

Everyone in America is complaining about Obamacare or raising taxes or denying grandmas and grandpas everywhere social security and Medicare benefits but no one ever talks about how good the small business owner really has it when it comes to paying NO TAXES AT ALL!

This is so true and let me give you an example.

Bruno and Ezzie Score Big

Small business owner Bruno and his wife Ezzie own a little office supply store. Sounds reasonably legit and for the most part it probably is! Here are where things go south and if you fear hearing the truth, you may want to stop reading now.

Ezzie hates grocery shopping so she sends an employee to the supermarket with a list and company credit card in hand. The employee even delivers the groceries to their home and puts them in their dedicated spots (don’t forget the wine!)

Bruno sends his assistant to the post office daily to collect the daily mail (Ezzie and Bruno also use the post office box to receive personal mail). Upset at so many overhead expenses such as utilities and telephone expenses, Bruno comes up with an idea. Why not pay my home telephone and utility bills out of my business account? That would save me thousands and me and Ezzie will have extra money to spend on a new car or something! Bruno also enjoys paying all the company credit card bills out of the business checking account—even the personal expenses—it’s all his money and his business and his decision right?

On the weekend, Ezzie and Bruno go off to buy that new car and find a used Hummer so equipped with features the darn thing can almost drive itself! But wait! Instead of using all those savings from allowing the business to pay their personal expenses, why not let the company buy the Hummer? Why not indeed! As far as gas, the company pays for that too.

Oh Ezzie and Bruno have to keep some things legit so they pay medical expenses and perhaps their mortgage payment and property taxes from their personal checking accounts—they don’t want to appear too greedy and they do have to show their CPA some sort of expenses at year end that are not being paid out of what small business owners everywhere love to call “the ice cream fund.”

Bruno has lunch with a fellow small business owner friend who tells Bruno—“you need more deductions and expenses dude! You don’t want to owe the IRS do you?” Hmmm Bruno thinks!

Sure Bruno and Ezzie could come up with some real legit business expenses like buying or leasing equipment they really need to use at the store but instead, they allow their small S Corporation to invest in Bruno’s brother’s mattress and produce factory—sounds like a disaster from the start right?

This is exactly what Ezzie and Bruno want, however! The produce and mattress factory doesn’t do all that well and is in the red constantly—month after month ending with a loss of over $100,000 at year end. Because Bruno and Ezzie are 50 percent shareholders in the business, they can claim half of that loss or $50,000 (it’s more complicated than that but basically it’s how it goes in real life.)

Bruno and Ezzie have a neat profit of around $25,000 thousand from their office supply store and to make this long, long story short, Bruno and Ezzie have K-1 statements which must be included with their personal tax return that look like this:

• Office Supply Store – K-1 - $25,000 positive
• Brother’s Produce and Mattress Factory – ($50,000)
• Money lost in the year – ($25,000)

This $25K loss is reported on their personal tax return, the IRS feels so sorry for Ezzie and Bruno and does indeed offer them a refund---a much undeserved refund at that if you think about it. Not only have they knowingly invested in a losing business, they’ve also paid most of their personal expenses out of the office supply store!

So, if you think the small business owner is suffering, think again the next time you walk past any small business. There are some honest small business owners out there, however, with the government making it harder and harder to even live and compete in America, what Ezzie and Bruno do is being seen more and more.

Business Fact or Fiction? This time it’s a fact folks and if you have a friend who owns a small business, ask them about their “ice cream fund.” If their face turns red or they walk away quickly, you’ll see how right I am on this topic.

Or, if you can’t afford to be a business owner—learn how easy it is to be a Lazy American and get stuff for free while watching TV!

Time for small business oversight committees? Sure, let’s spend more of our tax dollars—at least these dollars would be better spent than some of our tax dollars funding projects such as how cow farts are a form of energy or pollution—who knows! Jeez folks.

SBA FAQs Resource - http://web.sba.gov/faqs/faqIndexAll.cfm?areaid=24

Images:

Occupy Wall Street Screenshot by author.

Greed 1924 - Wikimedia Commons/Public Domain