State of the Union addresses are historically known to be delivered with little detail.
But what they do offer is a little insight into what the president is thinking about the future of the nation.
President Obama, in his address last week, said we must not let China, India and Germany outperform us; second-place is not the place for the U.S. He pitched high-speed rail, clean energy via new nuclear power plants and “clean coal” technologies and fixing the nation”™s flagging infrastructure as means to grow jobs. He said he has a plan to help farmers and other small businesses to increase their exports; he called it the National Export Initiative. Farmers in New York state are struggling to get by, Mr. President. Some even receive food stamps. We don”™t think exporting to other countries is on their minds right now.
But as he pushed for job growth, the president also mentioned something that would work against it ”“ higher taxes.
“But at a time of record deficits, we will not continue tax cuts for oil companies, investment fund managers and those making more than $250,000 a year. We just can”™t afford it.”
Well, a lot of small-business owners make more than $250,000 and a lot of them reinvest their money back into their business. Lumping small-business people in with oil companies and investment managers is a mistake.
Dan Danner had a similar thought.
“While there were a few hopeful moments for small-business owners in the president”™s speech ”¦ overall our impression is that, when the Obama administration talks about ”˜business”™ they really mean big business.”
Danner is the president and CEO of the National Federation of Independent Business. He pointed out that the president”™s call for increasing international trade and cutting corporate taxes means little to small business. Small-business owners “generally file as individuals and benefit more from breaks on individual tax rates.” And as far as global trade, few partake.
“With no mention of the job-creating power of small businesses and no proposals to unleash their enormous potential, the small-business community is left with the feeling that the president doesn”™t ”˜get”™ small business.”
The president did throw a bone of sorts to small business when he said he would propose taking the $30 billion Wall Street banks have repaid and funnel it down to community banks, which in turn would give credit to small businesses.
A very nice sounding plan, but someone is going to have to write down all the fine print that will spell out how a small business can pass muster to obtain the funds.
“I am also proposing a new small-business tax credit ”“ one that will go to over one million small businesses who hire new workers or raise wages,” the president said.
We look forward to reading the guidelines.
The president was on a roll, for he followed with, “While we”™re at it, let”™s also eliminate all capital gains taxes on small-business investment; and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment.”
Yes, worthy of applause, but please fast-track the legislation so it can have immediate worth.
Danner was appreciative of the president”™s mention of repeal of the health care law”™s 1099 provision, which would require businesses to send the tax forms for every business-to-business transaction of $600 or more for both property and service. Businesses now just file for any service-related transactions more than $600 involving an unincorporated business.
“And while small-business owners would prefer to repeal the health care law and start over, improvements that address the issue of cost would also be welcomed.”
But perhaps what should be more welcomed is getting big government out of small business.
In a speech earlier in the week to a business audience, U.S. Rep. Nan Hayworth said creating jobs should be left to private business.
“To me, the best thing the federal government can do is stop trying to create jobs. Let you all do what you do best ”¦Government doesn”™t create jobs; you do.”
The Congresswoman is mostly right in her assessment.
Government can create jobs or at least contribute to their creation through lowering taxes. New York state”™s ever-growing tax and fee burden is not just hampering job growth, it”™s sending businesses packing for the tax-friendly climes of the South.
Precision Valve left Yonkers for South Carolina.
Active Ventilation plans to leave Newburgh for Alabama.
Macy”™s picks West Virginia over Orange County to locate a distribution center.
Mr. President, please move quickly on your ideas and initiatives.
