Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Will American Producers be "Going Galt" After Jan. 1 Fiscal Cliff/Tax Increase?
Self | December 8, 2012 | PJ-Comix

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?


TOPICS: Business/Economy
KEYWORDS: fiscalcliff; goinggalt; vanity
Navigation: use the links below to view more comments.
first 1-5051-52 next last
What do you think is the possibility of this happening?
1 posted on 12/08/2012 4:52:25 PM PST by PJ-Comix
[ Post Reply | Private Reply | View Replies]

To: PJ-Comix
I suppose it's possible. See my tagline. I've had it for years.

/johnny

2 posted on 12/08/2012 4:56:34 PM PST by JRandomFreeper (Gone Galt)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PJ-Comix

They have an alternative. Raise their prices. All taxes, fees, fines, regulated upgrades, etc. are always paid for by consumers.


3 posted on 12/08/2012 4:59:15 PM PST by TigersEye (Who is John Galt?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PJ-Comix

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


4 posted on 12/08/2012 5:04:00 PM PST by eartick (Been to the line in the sand and liked it)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PJ-Comix
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?

Nationalize (and throw that uppity non-producer in jail for good measure).
Did you think they wouldn't have a plan B?

5 posted on 12/08/2012 5:07:00 PM PST by ZOOKER ( Exploring the fine line between cynicism and outright depression)
[ Post Reply | Private Reply | To 1 | View Replies]

To: eartick

Why not cash out 401ks and IRAs this year-lower tax rates than 2013?


6 posted on 12/08/2012 5:07:57 PM PST by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: greeneyes

Disability......two can play this game


7 posted on 12/08/2012 5:09:18 PM PST by eartick (Been to the line in the sand and liked it)
[ Post Reply | Private Reply | To 6 | View Replies]

To: PJ-Comix

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.


8 posted on 12/08/2012 5:13:10 PM PST by Arthur McGowan (If you're FOR sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PJ-Comix
Actually, I think there's a good chance that it could get worse than just some companies going galt.

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.

9 posted on 12/08/2012 5:13:37 PM PST by HeartlandOfAmerica ("We have prepared for the unbeliever, whips and chains and blazing fires!" Koran Sura 76:4)
[ Post Reply | Private Reply | To 1 | View Replies]

To: eartick

I read someplace about 59 1/2, is that the earliest one can cash out the Ira’s or 401k’s?


10 posted on 12/08/2012 5:14:26 PM PST by WildHighlander57 ((WildHighlander57 returning after lurking since 2000))
[ Post Reply | Private Reply | To 4 | View Replies]

To: greeneyes

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.


11 posted on 12/08/2012 5:16:33 PM PST by Arthur McGowan (If you're FOR sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: WildHighlander57

You can cash out before 59 1/2, but you have a 10% penalty.


12 posted on 12/08/2012 5:16:33 PM PST by kjam22 (my newest music video: https://www.youtube.com/watch?v=VciTnYA4Bfk)
[ Post Reply | Private Reply | To 10 | View Replies]

To: PJ-Comix
Of course, the ONLY way to get the producers back to working again would be to lower the tax rates.

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.

13 posted on 12/08/2012 5:17:37 PM PST by TwelveOfTwenty (Ho, ho, hey, hey, I'm BUYcotting Chick-Fil-A)
[ Post Reply | Private Reply | To 1 | View Replies]

To: WildHighlander57

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.


14 posted on 12/08/2012 5:18:02 PM PST by gotribe
[ Post Reply | Private Reply | To 10 | View Replies]

To: WildHighlander57

180 days after your 59th birthday.


15 posted on 12/08/2012 5:19:20 PM PST by Arthur McGowan (If you're FOR sticking scissors in a baby girl's neck and sucking out her brains, you are PRO-WOMAN!)
[ Post Reply | Private Reply | To 10 | View Replies]

To: PJ-Comix

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


16 posted on 12/08/2012 5:19:44 PM PST by VRWC For Truth (Roberts has perverted the Constitution)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PJ-Comix

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.


17 posted on 12/08/2012 5:19:51 PM PST by SaxxonWoods (....Let It Burn....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: WildHighlander57

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.


18 posted on 12/08/2012 5:21:18 PM PST by eartick (Been to the line in the sand and liked it)
[ Post Reply | Private Reply | To 10 | View Replies]

To: eartick

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?


19 posted on 12/08/2012 5:25:58 PM PST by SaxxonWoods (....Let It Burn....)
[ Post Reply | Private Reply | To 4 | View Replies]

To: SaxxonWoods

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.


20 posted on 12/08/2012 5:29:02 PM PST by eartick (Been to the line in the sand and liked it)
[ Post Reply | Private Reply | To 19 | View Replies]

To: SaxxonWoods

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!”


21 posted on 12/08/2012 5:34:59 PM PST by PJ-Comix (Beware the Rip in the Space/Time Continuum)
[ Post Reply | Private Reply | To 17 | View Replies]

To: eartick

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.


22 posted on 12/08/2012 5:37:05 PM PST by PJ-Comix (Beware the Rip in the Space/Time Continuum)
[ Post Reply | Private Reply | To 4 | View Replies]

To: PJ-Comix

California tax revenue from business is down 10% for November, almost a BILLION DOLLARS. Business has been leaving at about 5 a week.


23 posted on 12/08/2012 5:37:15 PM PST by Foolsgold (L I B Lacking in Brains)
[ Post Reply | Private Reply | To 1 | View Replies]

To: HeartlandOfAmerica

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.


24 posted on 12/08/2012 5:39:54 PM PST by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: PJ-Comix
It will happen...but just in a different way....

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 )

25 posted on 12/08/2012 5:42:55 PM PST by M-cubed
[ Post Reply | Private Reply | To 1 | View Replies]

To: Arthur McGowan

I see.


26 posted on 12/08/2012 5:50:13 PM PST by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: SaxxonWoods
Only the true crazies go all the way, God love ‘em.

Here in Texas, we prefer the term 'eccentric'.

/johnny

27 posted on 12/08/2012 6:06:33 PM PST by JRandomFreeper (Gone Galt)
[ Post Reply | Private Reply | To 17 | View Replies]

To: PJ-Comix

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.


28 posted on 12/08/2012 6:11:30 PM PST by RetiredTexasVet (The law of unintended consequences is an unforgiving and vindictive b!tch!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: M-cubed
When that's no longer feasible...then they'll stop producing!.. (That used to be covered in day 1 of most Economic 101 classes )

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.

29 posted on 12/08/2012 6:21:59 PM PST by wayne_shrugged
[ Post Reply | Private Reply | To 25 | View Replies]

To: WildHighlander57
I read someplace about 59 1/2, is that the earliest one can cash out the Ira’s or 401k’s?

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.

30 posted on 12/08/2012 6:34:49 PM PST by Pearls Before Swine
[ Post Reply | Private Reply | To 10 | View Replies]

To: PJ-Comix

It would be terrific if it did happen. Where’s the Gulch?


31 posted on 12/08/2012 6:45:21 PM PST by TBP (Obama lies, Granny dies.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: WildHighlander57

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.


32 posted on 12/08/2012 7:11:29 PM PST by Patriot Babe
[ Post Reply | Private Reply | To 10 | View Replies]

To: eartick

Thanks, that’s what I thought. My parents run a few in Texas. Good luck with everything.


33 posted on 12/08/2012 7:12:44 PM PST by SaxxonWoods (....Let It Burn....)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Pearls Before Swine

Seems nobody likes premature withdrawal


34 posted on 12/08/2012 7:14:40 PM PST by philetus (Keep doing what you always do and you'll eventually get what you deserve)
[ Post Reply | Private Reply | To 30 | View Replies]

To: HeartlandOfAmerica

>>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.


35 posted on 12/08/2012 7:15:51 PM PST by vikingd00d (chown -R us ./base)
[ Post Reply | Private Reply | To 9 | View Replies]

To: JRandomFreeper

“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.


36 posted on 12/08/2012 7:16:00 PM PST by SaxxonWoods (....Let It Burn....)
[ Post Reply | Private Reply | To 27 | View Replies]

To: PJ-Comix; JRandomFreeper
I added “Galt is freedom” to my tag line a few days ago. Not that the world or this country or this state or this county or this town cares, but I divorced “them”. I'm preparing my own world so I can live fine if the rest disintegrates.

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”.

37 posted on 12/08/2012 7:16:10 PM PST by Marcella (Prepping can save your life today. Galt is freedom.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PJ-Comix

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.


38 posted on 12/08/2012 7:18:56 PM PST by crusher (Political Correctness: Stalinism Without the Charm)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Foolsgold
The libtards always think the chaos which they create can be channeled in their favor to seize even more power. That is the premise they are operating on here.

Just like the hotheads who fired on Fort Sumter counted on little or no pushback.

39 posted on 12/08/2012 7:19:37 PM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
[ Post Reply | Private Reply | To 23 | View Replies]

To: JRandomFreeper; SaxxonWoods

“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).


40 posted on 12/08/2012 7:27:04 PM PST by Marcella (Prepping can save your life today. Galt is freedom.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Arthur McGowan

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.


41 posted on 12/08/2012 7:31:11 PM PST by Kickass Conservative (As they say in China, erections have consequences...)
[ Post Reply | Private Reply | To 15 | View Replies]

To: eartick; greeneyes; blam; All

Look into rolling your IRAs into a ROTH IRA. Might be better this year.


42 posted on 12/08/2012 8:49:28 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
[ Post Reply | Private Reply | To 4 | View Replies]

To: PJ-Comix

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)


43 posted on 12/08/2012 9:12:18 PM PST by sten (fighting tyranny never goes out of style)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SaxxonWoods

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


44 posted on 12/08/2012 9:14:38 PM PST by silverleaf (Age Takes a Toll: Please Have Exact Change)
[ Post Reply | Private Reply | To 19 | View Replies]

To: PJ-Comix
It's already happening and not just from a coming tax increase, but massive increases in regulations as well. Obama and his shadow backers are out to steal as much as possible while attention is diverted to the approaching collapse.

It's our standard of living that's going off the cliff to be torn apart on the rocks below.

45 posted on 12/08/2012 9:14:41 PM PST by Errant
[ Post Reply | Private Reply | To 1 | View Replies]

To: Patriot Babe

I hope things work out for you! Will say a small prayer for you tonight.


46 posted on 12/08/2012 9:26:20 PM PST by silverleaf (Age Takes a Toll: Please Have Exact Change)
[ Post Reply | Private Reply | To 32 | View Replies]

To: Patriot Babe
So my only last resource is my 401K which I have about $8000 and take the penalty and tax.

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! ;)

47 posted on 12/08/2012 9:34:06 PM PST by Errant
[ Post Reply | Private Reply | To 32 | View Replies]

To: Marcella
I'm not sure whether I should say thank you, or not... hmmmmm.

/johnny

48 posted on 12/08/2012 10:14:44 PM PST by JRandomFreeper (Gone Galt)
[ Post Reply | Private Reply | To 40 | View Replies]

To: sten
Having worked in the business, restaurants are going to get hit hard. They will of course, having free access to less than rule following staff, manage.

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.

/johnny

49 posted on 12/08/2012 10:21:40 PM PST by JRandomFreeper (Gone Galt)
[ Post Reply | Private Reply | To 43 | View Replies]

To: PJ-Comix
I can't see a total shutdown but a lot of producers reducing their volume and profit to no more than what they need to live comfortably.

That would be enough to put the economy into a deep recession!!!

Lets hope it happens.

50 posted on 12/08/2012 10:37:00 PM PST by dalereed
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-52 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson