Tom Golisano discussed on The Financial Quarterback

Automatic TRANSCRIPT

With Tom Golisano can you hear me better now Tom thank you yep you're coming inside okay so so now what talk about how paychecks go up big in the four one case space and in human resource you don't just you pay roll that's correct as a matter of fact human resource services and products of paychecks now very close to about forty percent of our revenue and growing at a fairly fast about I guess about twenty five years ago the fellow we talked about before Jean Palestinian one is in subordinates came and saw me and said time we should be interested in the four oh one K. market and I've you know have them explain to me how it might operate what the profit potential was the sales revenue and so forth and I listen to them for about an hour and I sat down okay let's do it but we don't have any software to get started with so we decided we would do things manually for awhile until the software was developed we also thought it was a good idea to develop the software leader would we thought we would know more of the issues revolving around that product in its operation so we started now today I think we have around ninety thousand companies that we do for one K. administration for how we sell more new four oh one K. plans per year than anybody else in the in the business and the same thing the thing that makes it really great Josh is if you do the payroll processing you have all the information in your hands electronically to do the operation for the four oh one K. not always get the money to the investors and keep track of their accounts by individual for example we could do the payroll for maybe thirty thousand companies on a Monday Monday evening and by Tuesday morning at six o'clock in the morning we've got all these things transmitted to the investors for all the deductions that were taken that day plus any employer matches so we're really efficient and we really expedite the process so that makes sense that a really good purchases service the other thing that's like it is that workers compensation insurance all right you know employees are responsible for calculating their workers comp insurance I do not necessarily very very good at doing it is expeditiously as they could so we offer a service the actual insurance plus the ability for us to actually pay to calculate the premiums on behalf of the client now they don't also hold other ray of products to come under featured ministration things like cafeteria plans if the employee handbooks unemployment reckons representation those kinds of things and it's really rounded out paychecks his customer base yeah thank you check his customer base and what it does it makes the client it is here's the client more to us than if we were just doing payroll because we're doing so many things for the client intestine so yeah I have an idea for you well to talk off line yeah I I get calls from paychecks all the time emails from them so while I was there are you a client or not I think we were but I'm not sure anymore but you know we were a close friend Vikas and then also when I worked with a non profit that my parents worked for and they were the paycheck the customer so interesting so maybe we'll give some synergies and some ideas democratic presidential debate this week what this court in this end US a billionaire the troubling thing I see is this war on wealth it's almost reached you know French Revolution type propaganda of the the some of the billionaires are apologizing for their well I mean you you hear the debates this week N. rather than Bloomberg say you know when he was questioned on his billions hate Hey Bernie I employed twenty thousand people you've never imported person a day in your life and really going on the attack the billionaires are good for both the Democrat and the Republican Party why why this demonisation of wealth and what can be done by the billionaire community that you know I don't know get better press or something I was started demoralized to that he was very much very defensive and he should have been much more offensive if I were a politician and I guess they have a long history of it you're not having people that are extremely successful I think is great for the business world and the consumer world because it provides inspiration for people that this is a wide open economies if you do some things right in new timing is good you could become very successful when I started up in paychecks I had no idea that it ever was going to grow to the point of what I was trying to get three hundred clients in Rochester New York and lived happily ever after but then I saw an opportunity and then opportunity involved or number years where we process now the payroll for six hundred and seventy thousand companies we have over fifteen thousand employees that have a good working atmosphere and have economic security we have a lot of shareholders that have done extremely well we paid for a lot of college education to lot of retirement homes a lot of retirement I don't think there's anything to be ashamed or embarrassed about also this idea about paying your fair share of taxes I know how much I paid I wish somebody could define fair share for me because I think I'm way over at and what I've had to pay over the years and I'll also look what it does when you get successful entrepreneurs like even like Bloomberg I mean he is so generous and has so much Phillip philanthropy even said on the air that he's given it to the states only away after he after he passes so why you would vilify those people then the great they like to use the argument well Amazon doesn't pay any taxes well I haven't looked at the financial statements of Amazon if indeed they don't pay any taxes income taxes corporate income taxes you must be a reason and I'm sure they're within the law and we have to remember Congress makes the laws so when you have people like Elizabeth Warren and Bernie Sanders getting up there and criticizing people for having tax loopholes they make a lot so it it's just seems foolish to me yeah I I don't like being vilified I don't think I deserve it I don't think other people deserve I mean when I when I grew up I mean we want my parents to declared bankruptcy in on my high school years my father was disabled we had we went through a period where six months we had to move in with my sister and her husband sleep on the floor in one bedroom I thank god for them or else we'd be homeless and I learned so much through that experience of my mom and dad they never vilified wealth that they were you know that there was a successful a business owner that my parents worked for who help the mount I mean they didn't make a fortune but you know help them out during tough times number one Christmas the guy got me a basketball hoop they did all privately no one knew about it but my mom kind of figured out who was so for me millionaires of our town not necessarily billionaires made our Christmases they they paid our paychecks I never got a job from a poor person I've heard said so I think I think we need to go on offense as the business community and also the sole of the about pay paying the fair share Amazon or any company names on makes wood symbols with you you know US postal service although I said that a week ago right I got an email from a guy who was very high up in the postal service saying that that's not true that they actually do the same volume discounts they give to you P. at U. S. UPS and FedEx and without Amazon you know the US postal service one B. as functional as it is today so even there we're we hear negativity it could be you know just for press but if you think about the average small business owner where the average big business owner you're paying even at today's trump tax cuts you're paying thirty seven percent on every dollar you earn federally you're paying eight to ten percent of the state so that's like forty seven percent right there then you're paying self employment tax on the first you know one hundred and twenty grand of income you're paying Medicare tax you're paying all all these very sales taxes income taxes property taxes I mean my company paid hundreds of thousands of dollars in local taxes they don't show up on the federal income tax issue I so I mean I just think that more and more of people and business need to educate the average consumer nobody's getting over on what they're what they're talking about is if you want to call a loophole is it when you sold what we sell paycheck stocks okay you might pay twenty five percent tax instead of thirty seven so what I mean that's not a that is an integral business we have to remember that that twenty five percent capital gains tax rate and the lower corporate income tax rate were put into play by Congress for very good reasons they wanted to encourage people to invest in Wall Street and investors are major companies and they also wanted to make our corporations competitive with the rest of the world that was the rationale for lowering the corporate tax rate and I can tell you for paychecks as a shareholder I did not get an increase in dividends but I know what paychecks did they make tremendous investments in product development and I. T. both in their I. T. organization so it didn't go rolling into everybody's pocket it stayed within the company created though I think we heard about two hundred more people than we had of the prior year so we have to remember the rationale but back to these politicians give you the expression if you rob Peter to pay Paul you always get the credit to live Paul well that's doing you know they take through if you promise to give it to the rest and they think that's the way they get elected it's it's an old story since the beginning of time yeah and then just so people know yes the capital just to bring this in the long term capital gains rate for most people's fifteen percent but for those in the higher bracket it's twenty and even twenty three point eight with the obamacare surtax which I don't know if they got rid of the exact sur tax I think it's still twenty three point eight and then you have state capital gains rates like in New Jersey there's a state capital gains you're talking at least you know twenty to twenty eight percent and that's what they're exploiting as this.

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