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Today's Nuze

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others."

Ayn Rand

Nobody's listening.

OBAMA TO AID SMALL BUSINESSES, BUT ...

By
Neal Boortz
@ March 16, 2009 8:40 AM
Permalink | Comments (11) | TrackBacks (0)

Today Barack Obama's administration is going to announce plans to aid small business owners. Great. I think we all can agree that small business owners are the driving force in this economy, considering the fact that there are 27 million small businesses in the U.S. that employ more than 40 million workers.

From Barack Obama's $787 billion stimulus package, $730 million will go towards reducing small business lending fees and increasing government guarantees on some Small Business Administration loans to 90%. Along with this, $10 billion will go toward unfreezing the secondary credit market.

First of all, just like the rest of the $787 billion in this stimulus package .. the money has to come from somewhere. And that "somewhere" would be you, the taxpayers. There's a better way to stimulate small businesses by allowing them to keep more of the money they would otherwise pay in taxes .... But we know that the FairTax isn't on Obama's radar. It would allow the people too much power, and strip the power from the imperial federal government. If the politicians don't make you more dependent on them, then they are out of a job.

Moving right along ... while Barack Obama introduces this package to aid small business owners, hasn't he already promised to raise taxes on these very people by 2011? Obama plans to raise income taxes on people earning over $250,000 a year, the very small business owners who claim their income on their personal tax returns. In fact, half of the people earning over $250,000 a year are small business owners. So, while aiding them up front, those gains will be slashed once the government demands more of their earnings in just a few years time. We'll be right back to square one.



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What others are saying

  • Idiot Politicians
    Don't those idiots who are in power now realize that the easiest way to keep power would be to pass the Fair Tax? Once passed, the economy would soon recover, available jobs would be everywhere, and the politicians responsible would be reelected for life!
    Maybe someone could point this out to them!
  • Question on the numbers
    I agree with Neal's point, but wondered about the numbers. Is it really 27 million businesses and 40 million employees? That would be an average of less than 1.5 employees per business and obviously not a huge job generating machine. Is one of the numbers wrong? I suspect so.
  • Coming and going
    They will make it easier to start a business, then make it all up when you report your income. Nice scam. Set Clark Howard on it.
  • This reminds me of Neal's dog tail story.
    It's a sad one, but it seems like the dp is going to feed small buisiness owners the bone from their own tail.
  • Copyleft, World Socialists Unite
    Copyleft typed: "Increasing income taxes above the quarter-million income level is not "punishment" or "disincentive" ... it's RESTORATION of a fair and progressive tax structure."

    Karl Marx wrote: "a heavy progressive income tax is the means to overcoming the capitalist order."

    Abraham Lincoln wrote: "things produced by labor belong to those whose labor produced them"

    We know whose side Copy is on.
  • Forcing earners to report more...
    By loaning the nations small business' money the government will know income and will therefore be able to figure out how much they owe. Making it more difficult for the small business owner to reduce income below the $150,000 punishment threshold.
  • Wrong again, copy
    No, government "loans" do not make for a thriving start-up sector.

    Accessible capital and liquidity in the markets do.

    So lame-duck Obama proposes to increase capital gains taxes--the very taxes that are PROVEN to reduce investments in start-ups by reducing the SUPPLY of available capital.

    Nice try, Copy. Do you and the Obama sock puppet share the same teleprompter? Sure seems like it.
  • The unseen tax
    I was reading part of H&R Block's annual report when I stumbled on the following line.

    "It is safe to say that the U.S. Tax Code has a very large effect on most Americans, and that the Code is exceptionally complex. For example, we believe that well over 50% of do-it-yourself tax filings contain errors in the amount owed."

    Block claims about 15% of Tax market. With annual revenues if about 4.5 billion and about 65% of that from preparation of individual tax returns in the U.S., that would indicate that individuals spend about $20 billion in getting their taxes prepared. That pales in comparison to the expenses that businesses pay in compliance costs.

    Here's another point to ponder as well. Had the FairTax been enacted in - say 2002, how many of Mr. Obama's appointees would have already been seated. Makes me wonder now if he will be able to fill any more vacancies that require consent of the senate.
  • Give Me a Break!
    President Obama has no clue. This is as useful as decreasing the capital gains tax on small business. Instead of inducing business to pick up more debt, he'd do better to forgo the huge tax increases and leave entrepreneurs with more cash in the first place.

    Beyond the higher taxes for payroll, income, healthcare and energy, the real hit to small business is in the regulatory realm. Small business owners are now permanently subject to civil action from every employee they’ve hired over the life of the business. If the coerced unionization bill goes through, every small business owner in America runs the risk of having everything they’ve sacrificed and worked for stolen through union intimidation of the workforce. Any small business owner who would bring on full time headcount under those conditions deserves what they get.

    To the Obama administration and their pals in Congress, all I have to say is: Good luck with that economic growth thing. Let us know how you plan to do it without full time job creation from the small business sector.
  • Get Out of Our Way.
    My wife and I both work full time in our small business, along with three full time employees. If President Obama and other government wonks want to help us, the best thing they could do is this: GET OUT OF OUR WAY!

    I shouldn't need to add more, but in case they don't get it, I mean remove all of the laws, regulations, and taxes that take away so much of our time, capital, and energy. Let us focus on creating wealth and jobs.
  • Not exactly "apples to apples" there
    Making small-business loans easier and more dependable helps more small business start up and prosper, providing JOBS.

    Increasing income taxes above the quarter-million income level is not "punishment" or "disincentive" or any of the other buzzwords the right has been throwing around... it's RESTORATION of a fair and progressive tax structure.

    Remember, the logic that says "Businesses will go under if taxes go up even slightly" is basically the same as saying "Rich people shouldn't have to pay any taxes at all.. and if we do, we're taking our ball and going home." It's nonsense.

    But I guess Neal has to play the Poor Little Rich Boy every day to keep that victim mentality going....
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