I was driving through the parking lot of a local strip mall down the street from my house the other day and I noticed that the local “Post Net” (similar to a UPS store) had shut its doors and gone out of business and this made me sad. The guy that owned and ran the place was a really nice guy that put in a lot of hours to make his business work, he worked 6 days a week, he had one employee, and he is a prime example of what the economy is doing to small businesses all over the country. This particular small business owner was a 20 year veteran of the United States Marine Corps; so after dutifully serving his country for a good portion of his life, he decided to sink his life savings into a business; a business that he worked hard at and in the end it just didn’t matter, he couldn’t afford to keep his doors open (But GM is still alive and well).
I have started and run several companies in my life and all of them fell under the category of being a small business. I understand the pressures of running a small business, of lying awake at night wondering how you are going to make payroll, rent, insurance, and trying to figure out how much you will have left over to put back into marketing in an attempt to grow your business. People who have never owned a business generally think how lucky business owners are; I mean after all we are our own bosses, we can come in late, take long lunches, leave early, take a three day weekend, and let’s not forget the bundles of cash that is coming in every day. They don’t understand that when you are running a business you work more not less than when you work for someone else, you don’t just punch out at five o’clock and forget about it till the next day, and you don’t come in late, you come in early before everyone else, and you leave late after everyone else, and weekends often don’t exist, as for the bundles of cash, well that pays employees, your lease, your insurance, your receivables, your phone lines, etc., etc., many times business owners make less than their employees.
I say all that to say this; President Obama wants to raise taxes on small businesses, why? Because he figures that the best way to fix the economy is by raising taxes on businesses (and individuals as well) that make over $250,000 a year, and to cut the taxes of the middle class, now many people might think this sounds like a good plan right? Wrong. First of all the rich already pay 90% of the taxes in the United States, and secondly, according to the U.S. Dept. of Commerce small businesses employ over 50% of all private sector jobs, so by taxing these businesses, this will cause layoffs, because many businesses will not be able to afford to keep all their employees with a tax increase.
It makes more sense to cut taxes for small businesses so that they can hire more employees and invest in their businesses, successful businesses are pushing money back into the economy and that is what fixes the economy, not taking money from businesses that are struggling to stay alive in a bad economy. Its basic common business sense, something that clearly is not abundant on Pennsylvania Avenue these days.