Skip to comments.Will American Producers be "Going Galt" After Jan. 1 Fiscal Cliff/Tax Increase?
Posted on 12/08/2012 4:52:04 PM PST by PJ-Comix
What is the possibility of American producers (manufacturing, agriculture, transportation, retail, etc.) "Going Galt" after Jan. 1 if the tax rates soar as Obama wants? The Bamster is so arrogant that he thinks he can merely order it (already proposed DOUBLE the original 800 Billion tax increase) and it will be so. But what if the people it affects the most (i.e. producers) just shut down their businesses? Gas stations closed, supermarkets closed, little or no transportation, etc. The result would be not only the American economy grinding to a halt but outright panic. Of course, the ONLY way to get the producers back to working again would be to lower the tax rates. Not something the 'RATS want to do but what choice would they have?
They have an alternative. Raise their prices. All taxes, fees, fines, regulated upgrades, etc. are always paid for by consumers.
Sold off my cow/calf operation this year. Have enough on my home pasture to sustain beef for my family and to sale for cash to friends.
Will not sale beef to feed yankees and Obamabots.
Closing out banking accounts this year. Pulling IRAs and 401Ks after the 1st of the year.
All in cash, food, precious metals and be ready to rebuild when the crash is over with and if I survive.
FUBO and the FERAL Government
Nationalize (and throw that uppity non-producer in jail for good measure).
Did you think they wouldn't have a plan B?
Why not cash out 401ks and IRAs this year-lower tax rates than 2013?
Disability......two can play this game
The only thing that is certain is that there are always some people on the margin. Their behavior is the most predictable. Those who are on the brink of bankruptcy with go bankrupt. Those on the brink of firing employees will fire employees. Those on the brink of selling their businesses and retiring will sell—if they are lucky—and retire.
In other words, it is a certainty that SOME people will “go Galt,” whether doing so becomes a “movement” or not.
Face it, compared to the entire debt, this "fiscal cliff" is a little mole-hill. 1.6 trillion? bah.
But if they can't find a way to agree to ANYTHING here, then holders of US treasuries and other instruments are going to have to take a SERIOUS look over if they will EVER get paid for the securities instruments.
They're going to come to the realization, NO, and a panic could set in.
Low chance maybe, but something that needs to be considered.
I read someplace about 59 1/2, is that the earliest one can cash out the Ira’s or 401k’s?
In my case, I can’t withdraw without a penalty until mid-January. The good news is that the $6000 I put in my Roth IRA ten to twelve years ago is now worth a cool $5000, so there won’t be any taxes.
You can cash out before 59 1/2, but you have a 10% penalty.
The left's answer is that Clinton raised the taxes, and look at all of the jobs "he created".
Of course, those jobs were created by the tech boom. The need to update the old mainframes for Y2K, the need to migrate the mainframes to servers, and the need to set up the servers for Ecommerce all created those tech jobs. None of this had anything to do with anything Clinton did, but the MSM saw to it that he got the credit. This needs to be pointed out.
It’s the earliest age you can pull out without a 10% penalty. There are reasons you can withdraw funds without paying it as well. Google cashing out ira without penalty.
180 days after your 59th birthday.
Yup, the law of unintended consequences.
The folks was flaming
Out of control
It was so entertainin’
When the boogie started to explode
I heard somebody say
Burn baby burn, disco inferno
Burn baby burn, burn that mama down
Millions of individual and collective decisions will be made in the new year. Going in the Galt direction is ongoing, but whether it will increase is unknown. I think it is likely to increase somewhat.
N.B. I’ve been about 75% Galt since 2008. Only the true crazies go all the way, God love ‘em.
There is a hardship/disability clause.
I am having some nerve isssues where I am having some problems walking and performing my job and qualify for LTD through my insurance (not SSI). LTD pays 80% of my salary and is not attached to SSI.
According to my CPA, I am 56 and I should be able to get my 401K and IRAs with out penalty, just taxes due.
I used to be one of those “friends” getting beef, but the guy stopped. Can you imagine a nationwide network of boutique cattle breeder people selling to small groups personal customers?
Seems like an all-round good deal for both sides, or has the business declined too badly?
Beef prices are at an all time high and have to be. Feed prices are also at an all time high.
I sold range feed beef only. No vacination and no steroid injection. The cows were the only ones that got any care, calves were milk fed.
Isn’t the fact that many state governments are REFUSING to set up ObamaCare exchanges one way of “Going Galt?” I predict that the states that spend millions to set up those exchanges will find out that they WASTED their money. Perhaps because ObamaCare will be impossible to implement in the first place or that they will find out the exchanges can’t be set up according to arcane, ever-shifting rules. The technical term for states that try to set up those exchanges is: “SUCKERS!”
How about barter for beef? I’ll trade 1 liter bottles of Grey Goose for about 7 lbs of beef. Maybe even kick in some body wash to seal the deal.
California tax revenue from business is down 10% for November, almost a BILLION DOLLARS. Business has been leaving at about 5 a week.
what will happen is private companies will go out of business.
if they make something profitable and popular, the govt will buy the company, take it over from bankruptcy or buy at pennies on the inflated dollr, and make it union shop and govt workers and attempt to use profits so they can keep spending.
will fail b/c the product under govt production will not be as good and sales will drop significantly. overhead costs will skyrocket as well as a govt business.
Producers will raise prices and down size....They'll make the same money with 1/2 the overhead!!
When that's no longer feasible...then they'll stop producing!.. (That used to be covered in day 1 of most Economic 101 classes )
Here in Texas, we prefer the term 'eccentric'.
I think many an enterprising small business will split into smaller units, each unit small enough to avoid Obamacare, and run by part of the family. Each unit member will limit income received to less than $200,000. Of course, each unit will maximize expenses such as vehicles, convention trips, etc. The other thing I think will arise is black market bartering which has taken off in some areas of the US already to avoid taxes.
At my undergraduate Alma Mater, we were instructed to read Karl Marx's "Das Kapital" so we didn't get a lot of supply and demand type "drivel" in my Economics 101 classes -- I am not exaggerating.
You can do it earlier, but in addition to the regular taxes owed, you'll get hit with an additional 10% penalty for, uh, premature withdrawal.
It would be terrific if it did happen. Where’s the Gulch?
Yes you have to be 59 as for me right now I’m 49 so I would have to wait another 10 years. Knowing how the Democrap work I would not be surprised they will confiscate 401Ks before I reach that age. Currently I got laid off a month ago and looking for work, I did get a severance pay but living cost like Rent, Utilities, Car Insurance etc. is eating it up. So my only last resource is my 401K which I have about $8000 and take the penalty and tax.
If I don’t find a job soon I don’t know what happen I would like to start a business but not here in California.
Thanks, that’s what I thought. My parents run a few in Texas. Good luck with everything.
Seems nobody likes premature withdrawal
>>But if they can’t find a way to agree to ANYTHING here, then holders of US treasuries and other instruments are going to have to take a SERIOUS look over if they will EVER get paid for the securities instruments.
>>They’re going to come to the realization, NO, and a panic could set in.
Which is exactly why Rats are discussing seizing all the 401k’s and IRA’s and forcibly converting them to treasuries.
The taxpayers and the Federal Reserve will always be the buyers of last resort to fund the debt.
“Here in Texas, we prefer the term ‘eccentric’.”
Heh. I’m in Colorado now, but I’m 7th generation Texian. I like those eccentric Texas folks.
To illustrate, I ordered a “slew” (that means a lot) of Tenergy rechargeable D batteries today and that's part of “my” power grid when “theirs” collapses. I've had it with “them” and trust myself for my future, not “them”.
I’m just an ordinary guy, but I’m dropping out as of Dec 28 when I walk away from a high paying, prestigious job at the top of my professional food chain. I’m not going to be unproductive, but simply doing the things I want to do.
I suspect even more than Going Galt there will be legions like me Going Underground, as in underground cash economy.
Just like the hotheads who fired on Fort Sumter counted on little or no pushback.
“Here in Texas, we prefer the term ‘eccentric’.”
I can attest to the fact Johnny IS “eccentric” and there’s no one like him (in a good way).
Yep, my big day to withdraw my own money without a Government imposed Penalty, (just Obama Taxes), is January 27th.
The money I save by not paying a Penalty will be taken away due to the new Obamacare Taxes anyway, so it’s a shallow victory.
Look into rolling your IRAs into a ROTH IRA. Might be better this year.
a 20 yr old family restaurant in florida i know will be forced to either cut hours to under 28, or close the business. the owner knows the 25+ people won’t be able to survive on that.
her choice is comply and close or comply and watch employees go broke... and eventually close
i say she has a third option.. an option company owners around the country should try.
have employees sign a document opting out of the federal healthcare bs... and proceed to refuse the ‘law’
the left encourages civil disobience... lets see how long the hold that position (i know, about 5 seconds)
I believd the widespread and growing govt use of “drones” is to monitor activities on private property and to hunt down anyone who tries to live “off the grid”
Someone, somewhere someday will know if citizens have cattle, are growing crops, or are collecting rainwater (illegal) and will come after them for taxes
They are already using satellites and maybe drones? to assess higher property taxes on citizens who make home improvements
It's our standard of living that's going off the cliff to be torn apart on the rocks below.
I hope things work out for you! Will say a small prayer for you tonight.
Not sure what your income is for 2012, but you might wish to hold off until after the 1st for a possibly lower tax hit on what you take out plus possibly another year before you have to pay the tax? Talk to your tax adviser! ;)
The good ones, with the good staff that sometimes gets in trouble for putting government flunkies in dumpsters, will do fine.
If a Revolution II ever starts, I expect it will start in a bar/restaurant.
Just like the first one.
That would be enough to put the economy into a deep recession!!!
Lets hope it happens.
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