President Obama Says He Supports Small Business, But What Has He Done for Small Business?
Once millions of small business owners got over the shock of President Obama telling them that government, and not hard work, is the source of their success, some probably took him up on it and looked carefully at what the federal government does to help them.
What they would find on the White House website is a blizzard of Obama rhetoric and precious few specifics. Prominent in the president’s pitch is government “investment” in pro-business programs — code for government spending supported by taxes and borrowing that starve the private sector and pad the size of government.
Only two days before the president delivered his “If you’ve got a business, you didn’t build that” broadside at hard working businesspeople, he called for measures to help them. He included capital investment write-offs, faster payment of bills for government contractors, and a grab bag of Small Business Administration programs.
This is thin gruel for the nation’s largest group of job creators.
The government defines small business as companies with fewer than 500 employees. It accounts for 99 percent of private employers.
The National Federation of Independent Business (NFIB), the nation’s leading association of small and independent businesses, reports that small business creates two out of three jobs. About 90 percent of small businesses employ fewer than 20 employees; 62 percent employ fewer than 5 workers.
These small business owners and their employees are desperate for relief from two looming job killers – increased income tax rates due January 1 of next year and the chaos of the president’s health care law.
Tax increases threaten to grab small business by the throat and deepen the ongoing recession. The president has proposed raising the top marginal tax rate on those making more than $250,000. That includes many thousands of S-Corps and LLCs that account for much of American business.
Higher taxes on small business owners mean they will be less likely to invest and expand. Less expansion means fewer new hires and even more employees let go or forced to work fewer hours.
The president’s health care law is the other threat to small business. Dan Danner, President and CEO of NFIB, says the law is death by a thousand cuts for small business owners. He recalls that small business owners have been calling for decades for health care reforms that lower costs. What they got, he says, is President Obama’s law that drives up the cost of doing business through new taxes, fees, and mandates.
The president insults small business owners. He proposes higher taxes and a destructive health care law. All the while, he claims to be on their side. It won’t wash.