U.S. Has Worst Tax System for Job Creation: King

Your next video will start in

Recommended Videos

  • Info

  • Comments


Aug. 27 (Bloomberg) -- Humanscale CEO Bob King discusses the company's ergonomic office furniture and the state of U.S. manufacturing with Carol Massar on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Environmentally aware and ergonomically sound companies.

It has also been featured in the museum of natural art.

It is great -- modern art.

It is great to have you here.

They really are wonderful.

What happened when you were studying economics?

I am not a chair designer.

Did you plan to do this?

It just came about.

I decided to go into manufacturing.

Slowly i got into this business.

It is interesting.

We just got off talking about restaurants and food.

I am noticing how the consumer has gotten much more pacific -- specific in terms of what is good for their help, whether they are eating something or living in something.

I assume that is good for your marketplace.


People want things incredibly easy to use.

The world has become a very complex place where everything is a challenge.

People want things that are very easy to use and you can figure out without reading a manual.

Our chairs work automatically for people.

Whoever sits in a chair, and knows how much you weigh and it just automatically to your body weight.

You can sit in any posture you want without thinking about it.

Other chairs you would have to operate manual controls to get it to do that.

That is very cool . we do a lot of things like that.

Was very tough time when you were getting off the ground that it was hard to get people to be interested in it, that a chair is a chair?


Every chair is essentially the chain -- same.

But it is not.

We have been let beucky that with able to make things like chairs better than they have been in the past.

That is how we survived.

I am an entrepreneur were in in an industry that has been very low growth.

We have found a way to make things significantly better than they were before.

What i would tell you is that the obstacles we have in front of us are fairly enormous.

The biggest obstacle we have facing us -- you want to talk about the tax code.

He says it makes it difficult.

What is difficult?

More than difficult.

It makes it incredibly difficult.

We have the worst tax system in the world because of job creation because of what i call "the growth penalty." it particularly affects the growing manufacturers.

It is having a huge impact on job creation.

Be more pacific -- you be more specific in terms of what it does for manufacturers.

Manufacturers are unique in that we have things that we use cash for, a lot of cash.

Like inventory that we cannot deduct.

We have other things.

We have money in accounts receivable that we do not yet have great -- we do not yet have.

Growth distorts that process.

You could easily have a situation where if you had a company growing at 25% a year, the effective cash rate would probably be in assets of 100%. that sounds pretty unreasonable.

That is not a speed.

That is a brick wall.

It stops drug creation in its tracks.

-- job creation and it tracks.

If you look at the situation in the united states, we have got in the leader for manufacturing to the united states only employs 11% of the workforce in the sector.

We are slowly starting to move back.

It is a lot of stories about companies starting to bring back manufacturing to the united states.

You do not buy it?

A small amount has come back because of costs rising elsewhere.

If you look at the trend, we have had a 50 year trend declining.

This is a long-term trend.

You will have aberrations along the way.

You will not see a change in that until you see a change change in the tax policy.

You cannot grow the manufacturing base unless you let manufacturing startups thrive.

But how is that impacting you?

What are you not doing because of this?

We are not growing as fast.

I was working very hard.

We were growing really fast but we are small.

I remember meeting with my accountant.

He said congratulations.

You made over a million dollars for the first time.

I said that is great.

I knew i lived a very sparse lifestyle.

I did not go out to eat very often because they cannot afford it.

Then he said the bad news is that you are going to pay a huge number, something like half $1 million in taxes.

I said how does that work?

How does that work?

I cannot go out to dinner.

He said welcome to the world of high-growth companies.

You're going to have a good relationship.

As he longer -- as long as you grow this become a you have to borrow money every year.

It does not seem to make sense.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change