Tale of two manufactering plants

Obama, Fiscal Cliff, taxes on he rich, FreedomWorks, Teaparty, The kitchen Table Patriots, Ana puig, Anastasia Przybylski, Gene barr, David Taylor, Kevin Shivers, william Marsh,

Today in South east Pennsylvania two different press conferences were occurring at two different manufacturing plants. Both press conferences were being held to discuss the fiscal cliff. One was held at the manufacturing facilities of the Rodon Group, an injection molding company that makes toys for the popular K’Nex  brand. President Obama was at this plant talking about the fiscal cliff.  His idea was to raise taxes on those that make over 250,000 dollars a year. Only 2% of Americans make over this threshold. The president believes this will solve our deficit crisis and save jobs. However this will not help the United States debt. Most estimates see that an additional 80 billion will be raised. This is about 5 to 10% of the annual deficit.

Over in Ivyland another press conference was being held at the Manufacturing plant of American Bar Products. This press conference was loaded with heavy hitters in the business community which included Gene Barr President of the PA Chamber of Business and Industry, David Taylor Executive Director of Pennsylvania’s Manufacturers Association and Kevin Shivers Pa State Director of NFIB. These Business leaders spoke out against President Obama’s plan and indicated that it would in fact hurt small business in this country.  


American Bar Manufacturing plants makes steel bars for all sorts of applications. The owner of American Bar, William Marsh, said eloquently “How do we compete on a global market where we are competing against lower labor cost around the world. The only way to compete and pay high wages is to have high labor productivity. The only way to have high labor productivity is to have the best equipment. The only way to have the best equipment is to continually innovate, Invest and sometimes fail.  Innovate again until it works.” So what is the impact of the Presidents policy?  Marsh went on to explain that companies like American Bar have very little debt. That means that capital expenditure on innovation and equipment are financed solely on earning IE profit. Marsh explained that “higher taxes mean lower amounts of retained earnings. Lower amounts of retained earnings means lower amounts of capital investment, lower innovation, less hiring, lower wage growth..”

Marsh went on to explain from a small business point of view, “If you raise tax on productive work,  people will work less and there will be less profit. With less profit there is less NOT MORE government revenue.  The impact of the Presidents policy will be, less business investment, less capital expenditure, less innovation, less capital accumulation, lower productivity growth, lower employment growth, and lower wage growth. If this is true why is the president proposing these policies of raising taxes? “

David Taylor, VP of Pennsylvania Manufacturers Association, Described Obama’s tax plan as an “obsessive fixation with tax increases; he fails to realize that most of PA manufacturers are structured to pay business taxes at the personal rate.” Taxing these folks takes away the working capital of their businesses, robbing them their ability to expand their business operations and increase pay roll.”

Gene Barr, President of the PA chamber, Gave a broad view of the fiscal Cliff.  He explained the impact of Obamacare and stated that we have “ an administration that believes prosperity comes from government.”

Ana Puig Co-Chair of the Kitchen Table Patriots and FreedomWorks PA had a grassroots perspective. She pointed out that when these “crisis” happen, the tax hikes are immediate while the spending cuts are promised.

Kevin Shivers, From NFIB said it best, “there are over 250,000 small businesses in Pennsylvania and President Obama found one who actually supported his tax plan. Well, I represent about 15,000 members that oppose the president’s tax plan.”

Over all, for a press conference held in a hard to find manufacturing site, there was a great turn out from the public.  The message needs to get back to the White House that the people understand what is going on and hopefully we will rain in spending and avoid the fiscal cliff.


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Pat Achilles December 01, 2012 at 12:24 PM
No percentage in tax hikes will even begin to cover what the US owes, if this administration doesn't considerably cut what its been spending right now, not in ten years as Treasury Secretary Geithner's plan proposed. Manufacturing, as indicated in the story above, will decrease instead of increase and the economy will become even more arthritic. And of course, with this administration's War on Coal, the western half of PA will soon get its punishment too. It's such a shame that not enough people in PA understood what these policies will mean for jobs, and vote this administration out. But as Mencken said, "Democracy is the theory that the common people know what they want, and deserve to get it good and hard."
Dogman December 03, 2012 at 03:13 PM
First of all, why isn't the author identified as a co founder of the local tea party group? She quotes her partner but doesn't mention their connection. The subject of reinvestment in technology is brought up but no mention of the Administration's tax incentives for reinvestment (Section 179). It's simply a lie that the Obama administration believes that tx increases alone can solve our economic problems and the author is lying deliberately which is normal for her judging by her website. lastly, read Bruce bartlett's book if you want an understanding of marginal tax rates and their economic effect.
David Neamand December 03, 2012 at 09:24 PM
Dogman, your statement is untrue, I watched interviews with the administration talking point -Geithner, and all he pushed were tax increases, and you are hooked into a fantasy world if you believe otherwise. He was asked if there were cuts in spending and the reply was "that is a separate issue" ie tax increases were the main thrust of Obama's policy not spending reductions. We cannot possibly raise sufficent capital to do any meaningful reduction on our debt without spending curbs and what does Obama want? Another 50 Billon of stimulus. Really worked well the last time - not so why not try again and waste more. Well perhaps not cause in addition to putting a cloak hold on investing, Obama's tax hike might just manage to pay for his stimulus Whoho
Dogman December 04, 2012 at 05:40 PM
Sorry, the spending cuts outweigh the tax proposals. You continue to lie about this. One answer to a specifci question can not explain the hole of a proposal. In fact Geithner was specific and used the amount of 600 Billion when referring to cuts. Thank God the Tea Party's time is about over. These no nothing dunces ahve diverted far too much energy from far too many people.
David Neamand December 05, 2012 at 04:46 AM
I listened carefully Dogman, All that was mentioned were "modest cuts in medicare and Medicaid, which was already raided to provide seed money for Obamacare just where we need cuts. Medicare needs reforming not cuts. There are significant areas where cuts can be made, DOE, and EPA come to mind. Wasting billons on projects that don't work or companies that go bankrupt. As to the taxes which was the main part of the interview, I was interested to notice that he dodged the question about Home Mortgage deductions and caps on how far a raise of capital gains would be. By the way and for the record, as to the tea party comments, the Tea Party and I share the same beliefs about the looming fiscal disaster our rapidly rising national debt will be, and a few other issues (very few) but that's about it. If you think you want to cut from Medicare, but tax tax then spend, you are not solving anything, and driving up the debt. It was proven over the last 4 years that stimulus didn't work or else the economy would be growing faster then 1.25% and unemployment would be far lower but alas it was all a pipe dream. Why else would so much energy be spend on the blame game, that really accomplished a lot doesn't it. What a waste of energy, rather then thinking of ways to solve the burgeoning debt crisis, just blame it on some one else, close your eyes and ears to the reality of our current economic situation.


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