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Hinckley: Why Progressives Hate Entrepreneurs + Business Owners

Saturday, April 19, 2014

 

As much as the Big Government Progressives hate to admit this simple fact, every single bit of wealth in our great nation has been created by the private sector. Even the government programs they love to boast about are funded exclusively by taxes imposed on private sector workers, or sadly in this day and age, future taxes levied on our grand children when they inherit our debt. Inventors, entrepreneurs, former huddled masses, single moms, single dads, happily married couples all pursuing their dreams of producing innovative often life changing products or services, have created the BOOM that is uniquely American.

In fact, American industry has created more wealth and paid more taxes than any country in the history of the world. By a long shot.

Coincidently, while all this wealth creation was happening and private sector American workers were achieving a quality of life never before experienced by workers anywhere in the world, the government got jealous and thus was born the Progressive. Progressive politicians are essentially people who would love to start a successful company and be the CEO but lack the understanding, discipline and skill required and thus decided the next best thing to starting a company and creating wealth would be to control the companies and take their wealth through a progressive tax code. And this is where we are today. And this is why building a business in America is next to impossible. Trust me I know, I’ve done it.

Entrepreneurs with a dream take risks and start companies. The employees in these companies make products and in turn make money to support their families and pay taxes to support the government and its’ employees. America needs a constant stream of new businesses being formed to ensure the next generation of companies will come to flourish, thus creating the jobs and tax revenues needed to support the aforementioned government and it’s employees. That’s how it works.

All businesses pass through four stages, Development, Growth, Maturity and Decline. The only question is, what stage are you in and for how long? America needs a healthy component of businesses in all stages of development in order to ensure continued prosperity. Unfortunately, I believe today, with the rise in power of the Progressive Politician, the people making the rules of business, and controlling the tax code, lack the basic understanding needed to produce an environment where new businesses can start and existing businesses can grow and thrive.

The entrepreneurial mind and body is exclusively different from most. It believes it can do what everyone says can’t be done and dedicates its efforts, through much pain and suffering, to that end. Unfortunately, much of that pain and suffering is dealt by the hand of our progressive government and its’ punishing and confiscatory tax code.

As you will recall from my previous articles, “innovation” in Progressive Speak is another term for figuring out new ways to take money from productive people and transferring it to unproductive people. Therefore you’d think they would be smart enough to “nurture” the geese that lay the golden eggs that they then redistribute, but in fact they’re not. All you have to do is look at Rhode Island and America’s manufacturing landscape, which has been eaten alive by 70 years of progressive politics.

In order for America and Rhode Island, to get back on track, we need to fashion a business-building environment where entrepreneurs are nurtured rather than tortured. A main way to accomplish this is through eliminating the income tax, for businesses and families, and replacing it with a code that rewards risk and work, while making compliance quick and easy. In other words, April 15th should be just another day.

Today our income tax code, is tens of thousands of productivity punishing pages, essentially a giant stick in the spokes of industry, slowing down our entrepreneurs and companies while driving up cost and driving down competitiveness. The compliance cost alone are in the hundreds of billions of dollars, including hundreds of thousands of man hours that could be spent innovating, building or with the family, but instead is spent “complying”. Furthermore, it incrementally punishes hard work and success, while rewarding the well connected with loopholes and carve-outs.

As much as the Progressives hate to admit it, states like Rhode Island must compete with other states on the national level and we as a country must compete with other countries on the international playing field. Our income tax code, State and Federal, today is essentially like asking a running back to walk on the playing field wearing a 50-pound lead vest and compete against un-weighted adversaries.

A pro-growth tax code could be written in a couple pages and should be a simple consumption tax across all goods and services, like the Fair Tax Solution. As consumers we are already paying these consumption taxes, because as Milton Friedman said, “Companies don’t pay taxes, they simply collect them”. Meaning they build these massive compliance and tax costs into the goods they sell you. The larger companies have adapted to this oppressive tax environment and can afford Lobbyists to buy favors and political carve-outs. However the aspiring entrepreneur has no advocate on Smith Hill like CVS does or in Washington like General Electric. Instead she gets pulled away from producing and inventing to service these massive government costs and demands, thus lowering her time spent growing the company, diminishing her available capital and in turn increasing her chances of failure.

Unfortunately, in the current progressively dominated political environment, pro-growth tax reform will never happen for one simple reason: Control. Progressives feel they need to control Americans and the businesses they start and run. They have justified this “Needed Control” by vilifying entrepreneurs with words like “extremist” and “radical” for believing in things like true tax reform and balanced budgets. In fact I was called both by Senator Whitehouse for supporting these very things.

Mitt Romney was lambasted for honestly revealing his tax return and the fact that he “only paid about 15 million dollars in taxes a year”. Personally, I think we need more people starting businesses like Mitt Romney and paying millions in taxes, not to mention the thousands of people he employed, who in turn paid millions more in taxes. Yet on the Progressive Left we have people like Senator Whitehouse who sponsored the largest piece of tax hiking legislation in 2012, the so-called “Buffet Rule”, yet he would not reveal his own tax returns. Doesn’t this seem a bit odd to you?

It does to me, but in fact; remember that in the face of the most anti-business and divisive political leadership since Castro took over Cuba or Chavez, Venezuela, the end always justifies the means. Government control over industry through demonization allows the Progressives to keep the very people, entrepreneurs and business leaders, who deep down, they really want to be, under their thumb and on a short leash…they then, in their own minds, are the masters…the Enablers of Progress!!!

Sorry, there will be no pro-growth tax overhaul until we enact term limits and throw the bums out! Referendum anyone?

Former U.S. Senate candidate Barry Hinckley is an entrepreneur, most recently founding and building Bullhorn, Inc. into a leader in staffing and recruiting software. Bullhorn was sold in 2012 to Vista Equity Partners. Hinckley, a free market libertarian, lives in Newport where he is working on his next business venture.

 

Related Slideshow: New England States With the Most State Debt

Prev Next

6. Vermont

Debt Per Capita: $12,566

National Rank: 36th Most

Total Debt (in thousands): $7,866,666

National Rank: 49th Most

Debt as a Percentage of Gross State Product: 29%

Prev Next

5. Maine

Debt Per Capita: $12,577

National Rank: 35th Most

Total Debt (in thousands): $16,717,250

National Rank: 42nd Most

Debt as a Percentage of Gross State Product: 31%

Prev Next

4. New Hampshire

Debt Per Capita: $13,951

National Rank: 27th Most

Total Debt (in thousands): $18,425,567

National Rank: 41st Most

Debt as a Percentage of Gross State Product: 28%

Prev Next

3. Rhode Island

Debt Per Capita: $17,960

National Rank: 16th Most

Total Debt (in thousands): $18,863,153

National Rank: 40th Most

Debt as a Percentage of Gross State Product: 37%

Prev Next

2. Massachusetts

Debt Per Capita: $19,493

National Rank: 12th Most

Total Debt (in thousands): $129,550,263

National Rank: 10th Most

Debt as a Percentage of Gross State Product: 32%

Prev Next

1. Connecticut

Debt Per Capita: $31,298

National Rank: 3rd Most

Total Debt (in thousands): $112,372,072

National Rank: 12th Most

Debt as a Percentage of Gross State Product: 49%

 
 

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Comments:

Thank you Barry. There are many of us who greatly appreciate your columns that explain these basic issues of American enterprise and American freedoms so simply, clearly and elegantly.

Yet, there are also many people who have been brainwashed for so long that they have little idea what you're talking about. I hope your writings can, perhaps in time, spark a love of freedom in these readers as well.

Comment #1 by Art West on 2014 04 19

Democrats are killing the middle class!

Comment #2 by LENNY BRUCE on 2014 04 19

"Progressives HATE Entrepreneurs LOL" this is nothing but a bold-faced lie
Silicon Valley tech companies are filled with , young progressives, the entrepreneurs who run them are mostly liberals. And generate Trillions of dollars every year. Folks like the liberal Bill Gates and many more

Why do Conservatives HATE Silicon Valley ?? and especially San Francisco ?

Comment #3 by Sammy Arizona on 2014 04 19

Great article. Of course, Progressives finally caught on to the fact that socialism doesn't work outside of the realm of Marxist theory, which is why they embraced the socialist welfare state to milk it of the abundance it produces. Even the ChiComs figured that out. But even the socialist welfare state is doomed to failure as the current occupant of the White House is rapidly proving. It is axiomatic that Democrats, Socialists, Progressives and their ilk never tire of new proposals to grow the power of the government in search of their illusive utopia that will only bring misery to those under their control. It's amusing to observe their mindset. It differs little from the mindset of "liberals" and Progressives in the 1930s when thousands, many in the "intellectual" and chattering classes were swept up in the euphoria of the "Great Soviet Experiment." They championed the "workers' paradise," at a time when Stalin had turned the workers' council into mindless cheerleaders for the wishes of "The Boss," and was exterminating the intellectual and peasant classes, as Eugene Lyons detailed in his books "Assignment in Utopia" and "The Red Decade." One of those caught up in the euphoria was Frank Marshall Davis, the Stalinist who served as Barack Obama's political mentor when he was a boy in Hawaii. It's no wonder Obama, and his mindless sycophants, hate business and the free market economy. It was part of the mush fed his empty brain at an impressionable age. Ironically, Obama is so mired in ideology that lacks even the intelligence to realize that a fully functioning free market economy is what is going to finance his expanding welfare state.

Comment #4 by Kendall Svengalis on 2014 04 19

Great article. Of course, Progressives finally caught on to the fact that socialism doesn't work outside of the realm of Marxist theory, which is why they embraced the socialist welfare state to milk capitalism of the abundance it produces. Even the ChiComs figured that out. But even the socialist welfare state is doomed to failure as the current occupant of the White House is rapidly proving. It is axiomatic that Democrats, Socialists, Progressives and their ilk never tire of new proposals to grow the power of the government in search of their illusive utopia that will only bring misery to those under their control. It's amusing to observe their mindset. It differs little from the mindset of "liberals" and Progressives in the 1930s when thousands, many in the "intellectual" and chattering classes were swept up in the euphoria of the "Great Soviet Experiment." They championed the "workers' paradise," at a time when Stalin had turned the workers' council into mindless cheerleaders for the wishes of "The Boss," and was exterminating the intellectual and peasant classes, as Eugene Lyons detailed in his books "Assignment in Utopia" and "The Red Decade." One of those caught up in the euphoria was Frank Marshall Davis, the Stalinist who served as Barack Obama's political mentor when he was a boy in Hawaii. It's no wonder Obama, and his mindless sycophants, hate business and the free market economy. It was part of the mush fed his empty brain at an impressionable age. Ironically, Obama is so mired in ideology that lacks even the intelligence to realize that a fully functioning free market economy is what is going to finance his expanding welfare state.

Comment #5 by Kendall Svengalis on 2014 04 19

This is just ignorance on display. Moreover, Barry should take an English class or pay an editor.

Comment #6 by Jonathan Flynn on 2014 04 19

Mr Hinkley and Mr Svengalis
If the Kenya born, progressive dictator Obama is a Marxist-Socialist, he sure is a failed one .. LOL
Since the day Obama took office, the "Capitalist" markets have skyrocketed the S&P 500 has more than doubled, rising by 128 percent . The Dow has also doubled, up by 103 percent. And the NASDAQ up by a whopping 181% The boom in U.S. oil production continues, which is up by 62 % under Obama U.S. imports of oil have gone down 52 % The year before Obama took office, the U.S. imported 57 % percent of the oil it consumed. , that figure was down to 28 % and DROPPING FAST

And exports of goods and services have increased by 36 %

Comment #7 by Sammy Arizona on 2014 04 19

"The larger companies have adapted to this oppressive tax environment and can afford Lobbyists to buy favors and political carve-outs." How is this the fault of your straw-man "progressives". Your piece is just a bunch of blame-game with very little substance. As a small business owner who considers himself a progressive, I make business decisions that balance profitability, client service and satisfaction, and employee well being. It's a model that works well because those three things are not necessarily competing goals. I never worry about or make major decisions based on taxes, perhaps because I am a wooly-headed progressive.

Comment #8 by Ralph Pratt on 2014 04 20

Sounds like more rich people complaining that they don't have enough. Seems like rich people were paying a lot more taxes in the 50's yet they seemed to be doing really well. I seem to remember growing up and getting 5% interest on my savings account at the bank, now you're lucky to get 1.5% interest if you promise to leave the money there and not touch it for 2 years. Those poor banks. The rich regularly get raises of 5 - 20% yearly while the rest get next to nothing. I used to work 40 hours weeks, now I work 45 to 50 hour weeks for the same salary because they refuse to hire more people and I usually end up working through my lunch break as well. Am I lazy? I support 200% more stuff than I did 10 years ago. Companies cry poverty and that they can't afford to hire more people, or give adequate yearly raises, yet they have money to reward the CEOs with 10, 15, and 20% annual raises. They also pay failing CEO tens of millions of dollars when they fail. They leave the company they destroyed and the company gives them 30 million or more to go, while everyone else either loses their job or gets a pay cut. Taxes are used in this country to pay for infrastructure like roads, bridges and airports that businesses use to enable them to succeed. Taxes pay for fire and police to keep your businesses safe, yet you claim those businesses should pay little if any taxes. There is wealth distribution going on, but there's a valid argument that tax havens and other shady business practices are to blame, and the wealth distribution is going in the opposite direction than you're claiming.

Comment #9 by Phil Paulson on 2014 04 20

Folks like Hinckley conveniently forget that in the final days of the Bush-Cheney-GOP recession the USA was hemorrhaging 700,000+ jobs a month (even with the "job creating" Bush tax cuts) Now with a Communist dictator who hates white people and who thinks there are 57 states ..LOL, in the White House we have had 45 months of private sector job growth, and reductions in Government jobs that the righties have been calling for 100+ years
Sammy in Arizona

Never forget that "Mr. Hollywood" Ronald Reagan sold some of OUR most sophisticated weapons, to his fellow Conservatives in Iran (Iran-Contra Scandal) Then funneled the cash to the Contras a conservative right-wing terrorist group that murdered hundreds of thousands of innocent civilians

Comment #10 by Sammy Arizona on 2014 04 21

Progressives cannot abide a robust, fluourishing, productive, middle class because that group historically neither needs nor wants progressives, or whatever other banner the communists are marching under.

Entrepeneurs are incidental, just one of many targets of the Left because the Left is hate. That's all the Left is: hate. Revenge is its pastime.

Genocide is its legacy.

Comment #11 by paul zecchino on 2014 04 21

Progressives just don't get it no matter how much logic one uses to make a point.

Comment #12 by Reagan Republican on 2014 04 21

See Sammy for examples of hate. Off his meds again...

Comment #13 by Jimmy LaRouche on 2014 04 21

Progressive business owners (or workers for that matter) should feel free to increase the tax payments they make to the government. Go for it, off-load 90% of your income if you think people in government know better than you what to do with the fruits of your labor.

For me, being a serf of the government is not what America is about.

Comment #14 by Art West on 2014 04 21

What a load of BS, Barry. I've personally started several businesses, of the kind that keep glorified recruiters like yourself in business btw. A shame, because you actually seemed fairly reasonable when we met during your campaign.

Here's someone else who apparently hated entrepreneurs...

"All the property that is necessary to a Man, for the Conservation of the Individual and the Propagation of the Species, is his natural Right, which none can justly deprive him of: But all Property superfluous to such purposes is the Property of the Publick, who, by their Laws, have created it, and who may therefore by other laws dispose of it, whenever the Welfare of the Publick shall demand such Disposition. He that does not like civil Society on these Terms, let him retire and live among Savages. He can have no right to the benefits of Society, who will not pay his Club towards the Support of it."
--Benjamin Franklin

That's right, "the Publick, who, by their laws, have created [wealth]."

If your next business venture is only viable with a 0% tax liability, perhaps you should rethink that one (or find someone more qualified to run it).

Comment #15 by Russ C on 2014 04 21

Nice try Russ C, but you are being intellectually dishonest. Benjamin Franklin was advocating that all of society had a duty/obligation to pay off the government debt associated with protecting and supporting the American colonies with their struggle for independence. He never advocated for a government that promoted Collectivism. Barry's perspective is dead-on.

Comment #16 by Ben Algeo on 2014 04 21

Russ C - With all the laws on the books, creating all that wealth we must all be billionaires.

Sorry Russ C wealth is only created through labor (not talking unions here, actual work). The Government (Publick) can only take it, not create it.

Comment #17 by Wuggly Ump on 2014 04 22

Obama is a lying bankster gangster puppet..if you don't see that you're a fool!, and BTW so was George Bush! Obama is just taking orders and running the progressive playbook,and when they're done, you won't recognize this country anymore.

Comment #18 by LENNY BRUCE on 2014 04 22

johnoflynn is a complete a$$, always has and always will be

Comment #19 by llik amabo on 2014 04 24




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