Home » ABC Small Business Blog

Small Business Takes Center Stage: Enter Joe the Plumber

Posted by Charles Cooper on Thursday, October 16, 2008

The coverage of a plumber named Joe Wurzelbacher and his encounter with presidential candidate Senator Barack Obama, replete with the Senator's admission that he plans to “spread the wealth” has been remarkable, but after last night that little discussion has been elevated to a real campaign issue. Yes, folks, Joe the Plumber, a man who wishes to purchase the business he has worked for all these years, now has a role in the 2008 presidential race, playing the same role that Willie Horton played during the Bush-Dukakis race back in 1988: As a window into the real views and positions of the Democratic presidential candidate.


Back in 1988, the hot issue of the election was crime. Dukakis touted his criminal justice efforts as unqualified successes. Willie Horton actually came up as an issue in the Democratic primaries. He was a sadistic murderer who cut up a 17-year old boy working the counter at a convenience store. The kid, Joey Fournier, gave Horton all the money and was then stabbed 19 times. Horton then stuffed his body into a garbage can. He was arrested, convicted and sentenced to life in prison without parole, the maximum sentence in Massachusetts. He was then allowed to enjoy weekend furloughs from prison. He came back nine times, but on the tenth he crossed over into Maryland and attacked a couple in their home, subjecting them to a 12-hour rape and torture experience before stealing their car. He was caught and convicted and sentenced in Maryland to two consecutive life terms plus 85 years. The sentencing judge, Vincent J. Femia, refused to return Horton to Massachusetts, saying, "I'm not prepared to take the chance that Mr. Horton might again be furloughed or otherwise released. This man should never draw a breath of free air again."


The fact that Dukakis, card-carrying member of the ACLU, would permit the weekend release of a violent murderer sentenced to life in prison without parole became a major campaign issue and helped to sink the Governor's presidential bid in spite of the incessant cries of “racism” from the Democrats. America understood very well that the issue had nothing to do with race. It was about releasing violent criminals, who should have never drawn a free breath again, so they could prey on the innocent once again.


Now, twenty years later, the problem isn't crime, it is the economy. We have Joe the Plumber and yet another window into the heart and mind of the democratic candidate for president, a regular guy who just might get across the message that raising taxes small businesses—raising taxes on anyone for that matter—is, as he put it, “completely wrong.”


Appearing on Nightline, Joe told Terry Moran, "To be honest with you, that infuriates me. It's not right for someone to decide you made too much---that you've done too good and now we're going to take some of it back." Joe went on to say that, “If you worked for it, if it was your idea, and you implemented it, it's not right for someone to decide you made too much."


During their encounter, Obama had told Joe that he planned to raise taxes on those making over $200,000 per year in order to “spread the wealth around,” which has proven to be the focal point of a great deal of richly deserved criticism. It also begs the following question: What is the purpose of taxes? Do we pay taxes to pay for necessary government services, or do we pay taxes to redistribute wealth? Apparently, Obama thinks that redistributing wealth is every bit as important as paying for necessary government services.


That seems to be the part that is drawing most of Joe's ire. He rightly points out that he is already overtaxed and that anything more would hurt is ability to purchase the business he is trying to buy. Obama's concern was for those behind Joe. During the debate, he said that Joe should have had his tax cut five years ago. He did. It was Bush's 2003 tax cut, which the Democrats violently opposed, doing their best to limit it in every way they could.


After that performance, should we really look to the Democrats for small business support? Their philosophy seems to have far more in common with Karl Marx than it does with Adam Smith a fact made obvious by Obama's little admission. During good economic times, that would be bad enough; but we are not in good economic times, are we? We are in a recession that is likely to last a while, unemployment is at 6.1%, a tiny but highly vocal and litigious segment of the population is doing its best to make sure that energy prices stay high, we are sending billions of dollars overseas of oil and other reasons and burrowing like mad to make up the difference. If ever there was a time to work for prosperity, to get the nation's economic engine going, that time is now.


Prosperity means that the chains are taken off of the American economy and it is allowed to do its work. Prosperity means that businesses are encouraged—I mean really encouraged—to make money, to expand, to hire people; you know, to prosper. Prosperity means giving everyone an equal chance, not guaranteeing an equal outcome. It means all of these things, but one thing prosperity does not mean is spreading the wealth around. In fact, prosperity means taking the wealth you have earned and using it to create more wealth.


In an article appearing on MoneyNews.com, Columbia University economist and Nobel Prize winner Robert Mundell, says that ending the Bush tax cuts—as proposed by presumptive Democratic presidential nominee Barack Obama—would cause "a big recession, a nosedive," while he called an abrupt tax increase “lethal.”


According to Mundell, making the Bush tax cuts permanent would eliminate economic uncertainty, which he says is more important than pushing for a further cut in the income tax rates." Mundell also advises lowering the top marginal tax rates from 35% to 30% and cutting the corporate tax rate to 25% in order to stimulate the economy and allow us to grow our way out of the crisis we are in.


Joe the Plumber knows that well enough, even without Ivy League degrees. He knows that higher taxes do not lead to prosperity, they lead to stagnation and they lead to failure. Small business owners all over America know the same thing, and they know that the policies outlined by Senator Obama will harm them terribly.


We have a choice in November, a candidate that will harm small business or one that will support small business; a candidate that will follow a Marxist approach to the economy or one that wants American Free Market Capitalism to do it work.


Choose wisely.

If you enjoyed this post, please consider leaving a comment or subscribing to our free newsletter to receive future articles and information delivered directly to your email inbox.

Charles

Charles Cooper is the Web Editor for America’s Best Companies. He came to ABC with nearly twenty years of business and technology writing and editorial experience. In addition to ABC, Charles has been tapped to be a freelance business writer with the upcoming American edition of The China Daily, has served as a writer for HowStuffWorks.com and LovetoKnow.com and as senior editor for Gear Technology magazine. Contact Charles.

Tags: small business, taxes, joe the plumber, willie horton, presidential election

Print this Article Print Email this Article Email Print this Article Comments
 
RSS RSS Feed Stumble Stumble del.icio.us del.icio.us Reddit Reddit Digg Digg Tip'd Yahoo! Buzz

Add a Comment


Name Email Address
Website

Identify yourself Required, never displayed Optional
 
 


 
Verify You're Human
 


VR 468x60

Reader Comments


Friday, October 17, 2008 at 11:06 AM
Toby says:

I think you are being unfair to Obama and McCain by overstating McCain's ability to help Joe the Plumber and understating Obama's. A little bit of redistribution of wealth isn't a bad thing. After all, it worked with Roosevelt's New Deal, and it has helped millions of retirees and senior citizens (see Medicare and Social Security).

Friday, October 17, 2008 at 11:19 AM
mark says:

You are a dumba** with no sense of appreciation for facts, history, human behavior or even a sense of humanity. You don't care about the truth OR people--only yourself.

When times are difficult, you DON'T say..."hey everybody, do whatever you want to do!" You make a PLAN, everybody sacrifices a little, works *together* and then you win.

Ever hear about a little thing called The Great Depression? How'd we get there? A free-wheeling economy based on easy credit, no regulation, low tax rates and a national psyched ruled by getting rich via the stock market.

What was the response there? Government programs designed to help people. Folks banding together. A redistribution of wealth.

You speak of Marx as if you've actually read him, but obviously you haven't. And while you may think Adam Smith is a God, let's clue you in--HE ISN'T.

He is an economic theorist who espouses a particular notion that over time, has proved false.

Free Market Economy does NOT work. It never has.

Yeah, read that again and go do some homework. Free market economy doesn't work and never has. Take a look at ANY healthy economy in history EVER.

You'll note that there have always been strong protectionist laws in place that creates a favorable condition for a successful economy. You only GET a strong economy by having protectionist policies, and THEN complaining about other people's protectionist policies and spouting off about the benefits of free trade.

It doesn't benefit a poor country to have free trade with a rich country--the rich country just comes in an abuses the resources and cheap labor, and when that economy starts to strengthen, it then trots off to find another weaker economy to abuse.

Well guess what. You eventually run out of weaker economies to abuse and then what happens?

The same old 'trickle down' economic theories didn't work for Reagan and they didn't work for Bush. Have you ever noticed that the national deficit reached all-time highs under Reagan and Bush?

Your so-called fiscal conservatives have no problems borrowing money now to enrich the few and leaving everyone else the bill to pay for decades to come.

That's responsible?

The notion of an economy always having to grow, and the sole purpose of business is to make money and a culture of MORE, MORE, MORE is false. It's destructive to both a moral culture and the physical world that we live in.

Sometimes, you have to say 'enough'. And use resources in moderation.

And is typical of the nonsensical propaganda your ilk spews...Joe the Plumber isn't even a licensed plumber, isn't even named Joe, is a registered Republican, and in true Republican fashion, doesn't pay his taxes.

There's a real poster child for your ideals. I'm not even being ironic here--you're absolutely right--this man represents EVERYTHING about the Republican party.
He's a liar, skirts the regulatory system designed to protect the public at large, has an over-inflated sense of his importance, feels he is above the law and doesn't think he should pay taxes in order to participate in our society.

Yeah, that pretty much sums up the Republican party...and you.

Did it ever occur to you that maybe this man...and many other people *shouldn't* be business owners? You DO know that 80% of all new businesses FAIL within the first 5 years of existence, right?

Which means the premise of "strike out on your own, become your own boss and you two can participate in the American dream of becoming RICH" is DESTINED TO FAILURE for 4 out of every 5 people.

Just like the free market economy--MOST of the people get screwed in order for a few to succeed.

What is needed is a revolution of the mind, a significant changing of our values and what is important.

Enough...should be enough. Not MORE. Fairness for all, should rule the day, not "let's give to the wealthy and hope that they give some to the poor." Understand that managing an economy the way that you manage your own money is not a bad idea.

You...a fat, white man of privilege who produces nothing but words on a piece of paper (or computer screen) produce NOTHING positive in this economy, and your notions of what's right serve only your own self interests.

You should be ashamed of yourself every time you look in a mirror. This isn't even a matter of having different economic theories--you are simply a waste of space and resources.

The problem is not whose tax plan is right for Joe the Plumber. The problem is YOU.

Friday, October 17, 2008 at 11:22 AM
Pilch says:

I love these Joe the Plumber headlines.

Joe The Plumber Is Not A Licensed Plumber!
Joe the Plumber: White House "plumber"?
Joe the Plumber isn't registered to vote
Joe the Plumber: Dad is son-in-law of Charles Keating!
Joe The Plumber Is, It Seems, Not A Tax Expert
Joe the Plumber won't say who will get his vote
Joe the Plumber Joins Ranks Of Other Awesome Plumbers
Joe the Plumber strikes 'Net gold
Joe The Plumber: Obama Tax Plan 'Infuriates Me'

Classic.

Friday, October 17, 2008 at 2:13 PM
Vladimir Lenin says:

Mark said:
Just like the free market economy--MOST of the people get screwed in order for a few to succeed.

What is needed is a revolution of the mind, a significant changing of our values and what is important.

Enough...should be enough. Not MORE. Fairness for all, should rule the day, not "let's give to the wealthy and hope that they give some to the poor." Understand that managing an economy the way that you manage your own money is not a bad idea.

I couldn't have said it better myself! Bravo! I wish you were around, Mark, during the October Revolution. I could have used you as a speech writer to fire up the proletariat, but I would have had to have Stalin kill you off in an insane, paranoid rampage, along with 60 million other people. Good luck with spreading the revolution! I'm sure you will succeed where me and Joey failed.

Friday, October 17, 2008 at 5:35 PM
mark says:

It's funny how people who seem to think that socialism is some kind of evil, don't understand you already LIVE in a socialist country.

Have you ever been laid off from a job and received unemployment benefits? Collected a Social Security check? Driven on a public road? Worked a minimum wage job? Gone to a public school?

Those are all socialist programs.

Oh...and that FDIC thing that *protects* you and ensures that YOU will still have your hard-earned money in the event that a bank over-extends itself by offering credit when it shouldn't...you know, like NOW...well, that's a socialist program too.

People who complain about socialized medicine and cry "We don't want to have health care like Canada!" don't quite grok that the people who LIVE in that system are, for the most part, quite happy with it. Likewise in ANY country that has nationalized health care--people will gripe about ANY government agency, but in the end, are happier to have the service than not.

I bitch about going to DMV like everyone else, but you know, my registration fees go towards building/fixing roads and I'm okay with that.

The current system screams FREE MARKET, and COMPETITION...until we actually start to lose, of course.

Our farmers get subsidies, our big businesses get tax breaks and everyone is looking for a tax break. Only suckers pay their fair share of taxes, right? If you're rich enough to afford high priced specialists (accountants), then you discover the magic of "loopholes" to lower your tax burden, right?

And that's fair? That's *right*? That's just?

Friday, October 17, 2008 at 10:42 PM
Patton says:

It amazes me the violent, little-girl hysterics that come out of the left when you uncover something they don't want brought to light. They have attacked Joe, they have attacked the writer here and they did it all to cloud an otherwise simple story:
1. Obama goes to a ropeline event to meet people
2. Obama is challenged by a regular Joe on his tax ideas
3. Obama is honest about his socialist intentions

Mark, if you have a beef with anyone, it is with Obama for announcing the socialist/communist agenda he has for America before actually winning the election.

Friday, October 17, 2008 at 11:08 PM
Happy says:

The best argument I've ever seen against socialism was put together by Mark Perry in the post I linked to in my name. The basic premise was this:

"The strength of capitalism can be attributed to an incentive structure based upon the three Ps: (1) prices determined by market forces, (2) a profit-and-loss system of accounting and (3) private property rights. The failure of socialism can be traced to its neglect of these three incentive-enhancing components."

"Without the incentives of market prices, profit-and-loss accounting, and well-defined property rights, socialist economies stagnate and wither. The economic atrophy that occurs under socialism is a direct consequence of its neglect of economic incentives." said Perry

If Joe the Plumber decides to work hard, save his money, open his own business, and some how find a way to make it successful, why should anyone but him directly benefit?

Saturday, October 18, 2008 at 2:57 AM
shayj says:

This "big government" label put on the Democratic party is a joke. We have had over six years of Republican ruled, and I personal did not feel any less government control, did you? It seems that what the so-called "conservatives" want is for government to be a pawn to be used whenever they mess up. They seemed to prefer "every man for himself." Where is the humanity in this? How pathetic a nation we would be if we had such a nearly non-existent government? Having a democratic government is needed to avoid the total greed and neglect that can exist due to people's basic selfishness.

Our Constitution states "For the people..." - all the people.

The Democratic party does not stop one from having a prosperity and economy freedom.... what it does is make certain all American have the fundamentals to live as a decent human being. From a religious view, how totally un-Godly to not want to be a part of this. (Read the Bible, to see how God "commanded" his chosen people to "leave the corners of their field unpicked for the poor.")

..."One nation, under God..."

As Christ says, "the poor will always be with us." A Democrat governance does not stop those who can give more to give to charities and individuals if they so choose. However, it sets up a system where it is "a must" that all who has the ability to work and the luck (blessing) to prosper, share a certain percentage for those who are not so fortunate in these areas.

Saturday, October 18, 2008 at 9:46 AM
Patton says:

Shayj--
If you were talking about the democrats of 40 years ago, then I might agree with you. The problem is that the batch we have today--including Obama--are so far to the left that they might as well be honest and just call themselves socialists. They demand equality in outcome, not equality in opportunity, and that is a surefire way to bankrupt the US both fiscally and as a culture. We can't let it happen!

Tuesday, October 21, 2008 at 10:03 AM
Uncle Sam says:

Correct me if I'm wrong.
Joe is not a licensed plumber.
His ability to buy the company has not be validated.
He would benefit from a tax cut under Obama's plan.
He owes back taxes, which suggest a lack of investment ability (or a bad CPA).
He is being used by both parties as an example of something I'm not sure of and doubt the validity of.

Taken out of context, "share the wealth" seems to me a way to reduce the tax burden to the middle class while increasing it for those who have benefited from loopholes to reduce their personal income - not business income.

It's nice when some of the wealth 'trickles down' to us middle class folks and who am I to say wealth distribution is fair in this country, but fair is fair when it comes to taxes and in my opinion, it hasn't been fair for a long time.

One last thing. Cut taxes and give more rebates while wars and bailouts are in progress to the tune of 11 trillion dollars (and climbing) in deficit spending. What a novel idea! Let's blame only one party and go back three decades to do so, rather than find solutions to the problems that have been identified, set up regulations to curb future transgressions and move the H*** on!!

Sound economic theory has been sacrificed on the altars of political expedience, huge government waste and bad policies.The next president better have a plan to get the parties to work together to solve the problems this country has been buried in or the future will be bleaker than it is now.


Join Free Today

Email:    Password: | Register | Help