I was puzzled this past summer by Rep. Boswell’s praising small business when the Democrat Party and Rep. Boswell are at war with small business. Since the election, there has been a systematic attack on America’s small business that has been unceasing. A few examples:
Repeal of the capital gains exemption: The canard the Democrats and Rep. Roswell are fond of is that this affects only those earning over $250,000 dollars. Nothing like a little class warfare. However, what they leave out is that many small business owners are subchapter S corporations and their company earnings are part of their family earnings. So rather than the gains from their efforts going towards growing their business and hiring employees, Rep. Boswell and President Obama would rather take that money and give it to failing businesses and banks.
Repeal of President Bush’s tax cuts: Again, the canard of “only those earning over $250,000 dollars per year” raises its head. In fact, if they are all repealed people earning as little $45,000 per year will see their tax rate climb 13%. While I am sure Rep. Boswell and President Obama will find deserving recipients, those creating jobs will have to do with less.
An out of control budget: Rep. Boswell and President Obama are quick to point out the deficit of nearly $400 billion at the end of the Bush presidency. This after 9/11, two wars and 8 years of defending America against Islamofacists intent on our destruction. However, they fail to point out that President Obama’s projected deficit for the first year is $2 TRILLION dollars. That’s 5 times larger than President Bush’s - in just his first year. Projections are for $1 TRILLION dollar per year deficits year after year with no end in sight if Rep. Boswell helps to pass President Obama’s budget. This has to be paid by someone – and the small business owner will be expected to lead the way. How will they be able to do that when their most important resource – capital – is being consumed at an unsustainable rate by the Obama administration and their out-of-control spending?
America’s plunging credibility on the global financial stage: President Obama and Rep. Boswell must borrow $1 for every $1 they spent to finance next years budget. Just take that in – they must borrow one-half of everything they want to spend from the global market. They need to borrow $1 TRILLION dollars for this year alone. Who will lend it to us? Last month the US was forced to pay 4.5% interest on $130 Billion in bonds. This is an auction that takes place every month. What will it be like in a few years with our deficit soaring and budget shortfalls as far as they eye can see? What country, in their right mind, will loan us money if they can not see any way our country will be able to pay the money back? This past weekend a number of banks in England have considered curtailing taking US investments because of President Obama’s interest in taxing profits of US corporations in foreign countries. How will pay this tremendous increase in debt? Well, the “rich” of course, all those earning over $250,000 – the small business owner.
President Obama and Rep. Boswell’s fondness for a “Carbon Tax”: The save the planet mantra is alive in well in the Obama administration. In order to force the American people to pony up the money for this folly (does it bother anyone else that the MSM fails to point out the earth has been cooling for over 10 years??) a Carbon Tax in near passage. Anything that puts out CO2 will be taxed: coal power plants (1/2 of all energy produced in the US comes from coal), any vehicle that burns gas, ethanol or diesel, industries involved in any type of manufacturing and, of course, any home that uses electricity. The result? Current estimates are that this will cost the average family from $1,300 to $3000 per year. How about small businesses that ship product, run trucks, run manufacturing companies? Again, money taken out of the pockets of citizens and small business to squandered by those who “know best” such as Rep. Boswell and President Obama.
The trashing of corporate law: The banks and the Chrysler takeover has been instructive. The government created a panic, forced the banks to take money and when they did, changed the rules so they could not pay the money back. This tack, endorsed by Rep. Boswell, is more familiar in 3rd world countries like Venezuela rather that America. The result – President Obama now controls America’s largest banks, the largest insurance companies and two of three of original American auto companies.
Chrysler has likewise been interesting. Perhaps the most stunning was the administration simply disregarding the first position of bond holders and moving less secured stock holder up, then, giving nearly 50% of the company to the unions. All under the guise of “speculators” being unwilling to bend. The fact is the bondholders were willing to take a 50% hit when they were not required to take any. These bond holders are retirees, pension funds, and state retirement funds. Rep. Boswell appears to agree that corporate law can simply be ignored if it is at odds with the will of President Obama. How does this affect the small business man?? If corporate law means nothing, how can they negotiate a contract or attract investors? How do smaller companies merge if corporate law in meaningless? How do they attract venture capital if there is a fear the government could step in and change the rules on a whim?
At every turn Rep. Boswell’s party seems intent on punishing innovation, punishing profit and punishing expansion and punishing the small business owner. How is this working? The small business community is abuzz with small business owners dialing back, taking fewer risks and holding back on expansion. Why work more to simply have it seized by an out-of-control government? Honestly, it’s not worth it. As of April, federal tax revenues were down nearly 40% from last year – 40%. Rep. Boswell and President Obama should get used to it. They are doing nothing to expand the economy. Small businesses are sitting this out until sanity returns to Washington. Perhaps Rep. Boswell might want to call a truce in his war on small business and encourage President Obama to put a stop to destruction of the American economy.
No comments:
Post a Comment