
Everyone is talking about the middle class, the taxpayer, the common man. I wrote earlier this week about “the forgotten man” of the Great Depression, and how he was used as a scapegoat or hero figure in what may well have been a manifestation of the nation’s collective dysfunction as much as it was the result of greed and overblown spending. I think one danger we’re in now as a nation is a similar tendency toward polarization and scapegoating. In healthy families and collectives, there is no need to demonize people or paint them into one-dimensional roles. The fact that we are finger-pointing on a national level indicates to me that we are in danger spiritually as well as economically. Without some galvanizing outer event to bring us together, we will continue to splinter until we succeed at demonizing one segment while glorifying another. Theoretically, we may generate a world war, a national disaster, or an economic depression to achieve for us what we will not do for ourselves as a nation, which is to unite. I fear that we will take the wrong course and continue to blame and reject the “other,” and unconsciously bring disaster among ourselves until we can finally realize what we’ve done.
Joe the plumber
Joe Wurzelbacher is the Ohio plumber whose name has become a household word and a metaphor for the American dream. At an Obama rally outside Toledo on October 12, Wurzelbacher asked Barack Obama why Obama wants to punish him through higher taxes on the small business Wurzelbacher hopes to buy. Joe was mentioned several times in the most recent presidential debate, and has galvanized many small business owners and others who have struggled to get ahead and provide for their families to protest against Obama’s “spread the wealth” plan. In an already failing economy in which taxpayers will be footing the bill for a massive bailout, business owners are scared. What if they can’t keep their doors open? What if they can’t make their payroll? What if they can’t provide for their children? What if they lose everything they’ve worked for?
Many small business owners like my husband and I have survived two recessions during which we nearly lost everything we had. That bakery you buy from, the dry cleaners who clean your clothes, the restaurants you eat at, and the shop where you have your watch or auto repaired are all run by small business owners. They have a perspective that comes from starting with nothing and working their way up to becoming business owners—what we call “The American Dream.”
On the other hand we seem to have a lot of Americans who are angry with small business owners and large ones. They say business people are all greedy, that they’re selfish and have too much. They resent the fact
that the middle class and upper middle class can drive better cars that get better gas mileage, can live in nicer neighborhoods and send their kids to private schools. They’re angry that their kids have to compete at school with children who have more stuff, wear more name brands, and whose iPod is more expensive. There are angry, hard-working Americans who want that stuff, too. And although the welfare and many of the working class pay zero in federal taxes, they want the people ahead of them to pay more so that they can get more free stuff that they didn’t work for, perhaps because no matter how hard they work or how many hours, they can’t get ahead. They want someone to help them along. They don’t always want to be the guy on the bottom, supporting the guy at the top so that he can buy his daughter the more expensive iPod.
It seems to all be about stuff and jealousy, and our human refusal to be content with what we have. And some level of discontentment can be good when it goads us to achieve. But when it goads us to achieve at another’s expense, or to generate a sense of entitlement that we think gives us the right to take what someone else worked for, what then? Are we even thinking about our assumptions?
John and Jane Q. Taxpayer
McCain and Obama alike refer to the taxpayer, to the middle class, to the American living on Main Street. But who is this American taxpayer? Based on statistics from the U.S. Census Bureau, the majority of Americans work at small firms and make under $50,000 a year. Over half of all Americans employed in the private sector are employed by small businesses, which produce more income and more jobs than the large business sector. Yet small businesses pay more per employee for government regulation and intervention than do large firms with over 500 employees, a fact published by the U.S. Small Business Administration.

The American taxpayer is you and me, and it’s probably also your boss, unless you work for a large company (500+ employees) or the local, state, or federal government. Our economy is run by small businesses and by middle-class Americans who are already struggling to make their payroll, their payroll taxes, their high business and unemployment tax payments, their outrageous comprehensive, liability and vehicle insurance premiums, as well as their personal mortgage payments, tuition for their kids, and contributions to their own retirements. After all, we small business owners don’t have guaranteed retirement as do our legislators. We don’t have government-backed retirement plans like government workers. In the past week alone, my husband and I lost 33% of the value of our retirements, money we saved all by ourselves and which is not guaranteed by anyone. How selfish is it of politicians to tell Joe the Plumber that he is making too much money when they themselves are multimillionaires with guaranteed retirements and health insurance?
How is that loving your neighbor as yourself? And if our lawmakers are not acting out of real love, then from what energy are they acting? Do we want to know?

It appears to me that the bailout bill and the economic plans being proposed do little to improve things for the segment of American businesses or citizens who actually produce the most jobs and income for most taxpayers. It appears to me that the new taxation being proposed against small businesses and the middle class will do nothing to help those of us who have already done more than our fair share. Instead, it aims to penalize us for working so hard. It aims to force us to “spread the wealth around” before anyone even asks whether there is any “wealth,” and whether the current tax scheme is fair. Why do we not ask more questions about fairness, when the word “fair” is being bandied about by both candidates for the American presidency?
there’s a top line, and a bottom line
As the co-owner of a small business, I’m concerned about how a new tax-and-spend congress and president may affect the future of our country and our own business. With only half of our umpteen children raised, we cannot afford to go bankrupt. My husband is almost 55 years old and has literally worked with his hands all his adult life. Like many other small business owners who have Subchapter S corporations or LLCs, any business “profit” we make—even money we set aside for the business so that we can pay our payroll and keep our workers employed when our contractors do not pay us or pay late—is taxed to us as individual income. What we actually live on and what the business makes are two different things. Right now, in spite of a so-called conservative congress and president having been in power for six of the past eight years, we pay enough in business-related taxes to employ 4.5 additional workers who we can’t hire due to the prohibitive costs of doing business. Instead of hiring new people, my husband works almost every Saturday. So when I see Joe on television, I want to pat Joe on the back and say, “Joe, I understand.” Lots of us work 10-12 hour days and have everything we own at risk as we run businesses that are being bled dry by a burgeoning welfare class and bureaucrats in Washington, D.C.

Most people do not run small businesses and don’t know what it takes to run one successfully. Over the years, we have had several employees who had similar attitudes to those expressed by so many bloggers, commenters, and others who are criticizing Joe the plumber for “making over $250,000 a year.” They say Joe is rich if his business makes over $250,000 a year. They say they deserve a cut, too, and they go out and start their own business, and most of them fail. They fail because many people don’t have the right combination of work ethic, determination, intelligence, experience, ambition, and hope to be able to open and maintain a small business successfully. But they direct jealousy and hatred at those who do, and they say that Joe the Plumber must be rich if his business makes $250,000 a year.
I have news: They don’t know what they’re talking about. And over the next few days I’ll be explaining how Joe’s plumbing business is most likely to operate based on government statistics gathered from people’s tax returns, and why revenues of $250,000 to a plumbing business by no means make Joe “rich.” I’m going to explain the top line and the bottom line of an income statement and a tax return so that people will (I hope) stop accusing Joe of being “rich,” when what he actually said was that he hopes to buy a plumbing business that makes $250,000 to $270,000 a year (that’s gross, my friends).
My hope is that people who shop and do business every day at small businesses will be more aware of just how many services they use are provided by people who own small businesses. Even that restaurant chain you eat at is actually owned by a small business owner who bought into a franchise, borrowing what he hoped to be able to repay through incredibly hard work. When you stop and think about how Bill and Betty the Business Owners are the ones who have to go in and work the 8-hour shift whenever someone they hired doesn’t show up, or how they borrowed against the home they live in to be able to open the doors of that business, maybe you’ll think twice before you assume you know how “rich” those people are or how selfish and greedy they must be.
And maybe, just maybe, we will start saying, “I’m not sure,” and maybe we’ll ask more questions of the people we do business with. Maybe we will pay as much attention to the internal revenue of our spirits, looking to our own hearts and our level of judgment and anger with as much vigor as we judge our neighbors.
One can always hope.
