"I've cut taxes for small business owners 18 times since I've been in office," President Obama said Monday as he proposed tax hikes on the well-off. He stressed, "This isn't about taxing job creators, this is about helping job creators."
Small business owners may feel they've gotten quite enough help from the current administration.
The Small Business Optimism Index fell 3 points in June to 91.4, the National Federation of Independent Business reported Tuesday. That's the lowest level since last October and the biggest one-month drop in two years. Net employment at small firms declined for the first time this year. Business owners also soured on the prospects for their profits and sales as well as the overall economy. The report adds to a slew of recent data pointing to deteriorating economic activity at home and abroad.
The latest NFIB survey doesn't include reaction to the Supreme Court's ObamaCare decision in late June. But the small business community is no fan of the NFIB v. Sebelius ruling.
"With over 20 new taxes contained in the law -- a price-tag of $800 billion -- and most of the regulations yet to be written by HHS, the implications for employee costs remain unclear," said NFIB Chief Economist William Dunkelberg in a statement. "Uncertainty reigns supreme for much of Main Street."
Obama on Monday proposed extending tax cuts, for one year, on families making less than $250,000, while arguing that people making more than that should see higher taxes.
Republicans and business groups said that would hit many small business owners. Obama claimed that 97% would be exempt, which is why he said he's not targeting "job creators".
It's true that about 80% of small firms are one-man or -woman operations with no employees. But firms that start tiny tend to stay that way. Startups that develop into big "job creators" tend to have several employees from day one. But those are firms are more likely to have income above $250,000. Higher taxes on such businesses would exacerbate a key but little-known weakness of the anemic recovery: The number and size of startups plunged during the recession and haven't recovered.
As for Obama's small business tax cuts, those often are less impressive in reality than on paper.
ObamaCare includes tax credits to help small firms offer health insurance for employees. The administration's Council of Economic Advisers thought 4 million would use them. But just 170,000 small businesses took advantage in 2010, IRS figures show, according to a recent study by the nonpartisan Government Accountability Office. The reason: The credit was too small and too complex for small business owners.
It's far more important to have simple, low tax rates and friendly, stable regulatory regime. Complex tax and regulatory systems tend to favor big businesses. For companies with thousands of employees, hiring a few accountants and other specialized compliance staff is almost a rounding error. But tiny firms can ill afford to dedicate a single employee to such matters. Bigger companies also often have the political connections to shape rules to their benefit. The Obama administration has issued more than 1,200 ObamaCare waivers. Recipients include McDonald's and many unions that are allied with the president.
The president may not understand that he isn't "helping" small firms, just as he appeared to sincerely believe that the private sector is "doing fine". The Chicago community organizer-turned-politician has no business experience, especially with Main Street.. His exposure to the business world mostly consists of cutting cozy K Street deals with industry lobbies, such as getting drugmakers to back ObamaCare, or soliciting campaign cash from Wall Street.
http://news.investors.com/article/617574/201207100805/obama-pushes-tax-hikes-nfib-small-business-confidence-falls.htm
Small business owners may feel they've gotten quite enough help from the current administration.
The Small Business Optimism Index fell 3 points in June to 91.4, the National Federation of Independent Business reported Tuesday. That's the lowest level since last October and the biggest one-month drop in two years. Net employment at small firms declined for the first time this year. Business owners also soured on the prospects for their profits and sales as well as the overall economy. The report adds to a slew of recent data pointing to deteriorating economic activity at home and abroad.
The latest NFIB survey doesn't include reaction to the Supreme Court's ObamaCare decision in late June. But the small business community is no fan of the NFIB v. Sebelius ruling.
"With over 20 new taxes contained in the law -- a price-tag of $800 billion -- and most of the regulations yet to be written by HHS, the implications for employee costs remain unclear," said NFIB Chief Economist William Dunkelberg in a statement. "Uncertainty reigns supreme for much of Main Street."
Obama on Monday proposed extending tax cuts, for one year, on families making less than $250,000, while arguing that people making more than that should see higher taxes.
Republicans and business groups said that would hit many small business owners. Obama claimed that 97% would be exempt, which is why he said he's not targeting "job creators".
It's true that about 80% of small firms are one-man or -woman operations with no employees. But firms that start tiny tend to stay that way. Startups that develop into big "job creators" tend to have several employees from day one. But those are firms are more likely to have income above $250,000. Higher taxes on such businesses would exacerbate a key but little-known weakness of the anemic recovery: The number and size of startups plunged during the recession and haven't recovered.
As for Obama's small business tax cuts, those often are less impressive in reality than on paper.
ObamaCare includes tax credits to help small firms offer health insurance for employees. The administration's Council of Economic Advisers thought 4 million would use them. But just 170,000 small businesses took advantage in 2010, IRS figures show, according to a recent study by the nonpartisan Government Accountability Office. The reason: The credit was too small and too complex for small business owners.
It's far more important to have simple, low tax rates and friendly, stable regulatory regime. Complex tax and regulatory systems tend to favor big businesses. For companies with thousands of employees, hiring a few accountants and other specialized compliance staff is almost a rounding error. But tiny firms can ill afford to dedicate a single employee to such matters. Bigger companies also often have the political connections to shape rules to their benefit. The Obama administration has issued more than 1,200 ObamaCare waivers. Recipients include McDonald's and many unions that are allied with the president.
The president may not understand that he isn't "helping" small firms, just as he appeared to sincerely believe that the private sector is "doing fine". The Chicago community organizer-turned-politician has no business experience, especially with Main Street.. His exposure to the business world mostly consists of cutting cozy K Street deals with industry lobbies, such as getting drugmakers to back ObamaCare, or soliciting campaign cash from Wall Street.
http://news.investors.com/article/617574/201207100805/obama-pushes-tax-hikes-nfib-small-business-confidence-falls.htm
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