President Obama and Small Businesses

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English: View of the east end of the Ithaca Co...

At http://washingtonexaminer.com/55-percent-of-small-business-owners-would-not-start-company-today-blame-obama/article/2509069#.UGNK8q4yfCZ is a story revealing that 55% of small business owners would not start a business today, and that they blame President Obama for that. Democrats love to claim that “We are for the little guy,” but the small business owners with whom I have talked agree with the 55% in the poll. One owner of a flower shop told me that his business prospered best when Mr. Reagan was president, and that he is barely holding on under the Obama administration. The main reason is the poor economy–and this is something that cannot be wholly blamed on Mr. Bush, although he shares part of the blame. Mr. Obama has been in office for three years, and his massive spending of federal money has done no more good than did Mr. Bush’s massive spending. The “economic stimulus package” may have helped some businesses and educational institutions, but much of the money did not go to “shovel-ready projects,” as Mr. Obama claimed.

What is needed for small business to prosper is (1) a lessening of the regulatory load the federal government imposes on business, (2) a reasonable tax rate that does not overburden small businesses, (3) an end to the corporate welfare that favors large corporations over small businesses in a given community, and (4) higher tariffs and other ways to lessen the trade deficit and to stop outsourcing of American jobs. The Republicans agree with the first three factors–they need to follow Pat Buchanan and agree with the fourth. Still, three out of four is better than the Democrats’ zero percentage.

If the Obama Administration were only an enemy of large multinational corporations I could stomach that. They hold an unfair advantage over small businesses and often out-compete mom and pop operations by city, county, and/or state officials giving them large tax breaks. But the Administration has revealed its hostility to small businesses as well through heavy regulatory and burdensome tax policies. The massive spending of federal funds that has blown the federal budget deficit out to astronomical proportions helps keep investors nervous and helps keep the economy in a chronic recession. If a Republican were president, much of the media would be telling the truth which is that the United States is in a depression. The true unemployment rate that includes those who have given up trying to find the job approaches 15%. In some counties unemployment approaches 30%. The poor economy means that people have less money, and their lack of funds means that they spend less money–and small businesses, which are often more expensive¬† than large corporations, suffer first as customers seek cheaper products. The combination of poor sales and increasing capital resources to pay taxes and for renovations required by the government smothers small businesses. The economic ramifications of a second Obama term would most likely result in the ruin of many other small businesses.

The Injustice of Property Taxes

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Tax

Tax (Photo credit: 401K)

A young couple works hard and saves for years to make a downpayment on a house. Luckily, interest rates are low, and they are able to get a 15-year loan at an excellent rate. The house is paid off on time. However, due to the husband being laid off at work and the wife having health problems, the couple gets so far behind on their county taxes that the county seizes their home and sells it at an auction. The family is left homeless.

I am sure such situations are repeated time and time again in our society and in many other societies as well. I suggest that such a system is unjust. If a state wishes to have a system of private property, then when a person or persons has worked hard and paid for that property, it should belong to the person who purchased it, period. The property tax system punishes those successful enough to buy property and pay for it on time–if they have a difficult financial time and cannot afford to pay, what they have paid for fairly is seized–that is stolen–by the state. This is highway robbery of the most egregious kind. I believe that the current system of property taxes should be abolished. Perhaps a flat tax with no loopholes might be better–anything other than a system that gives the state power to seize property that was paid for. A lifetime of labor can be erased by one period of difficult circumstances. With more and more people not owning property and envying those who do, it will be practically near-impossible to change the current system. The acquiescence of property owners to such injustice also fuels its continuation. It is time for property owners to take a step beyond trying to reduce property taxes and try to have them abolished altogether.