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Obama Claims To Be A Friend To Business, But His Actions Prove He’s Not

September 21, 2010

  

Barack Obama

 

 

OBAMA CLAIMED HE HASN’T SQUASHED BUSINESSES

 

OBAMA CLAIMED: “I Think That If You Look At What We’ve Done Over The Last Two Years, It’s Very Hard To Find Evidence Of Anything That We’ve Done That Is Designed To Squash Business As Opposed To Promote Business.” (CNBC’s, “Investing In America: A CNBC Town Hall Event With President Barack Obama,” 9/20/10)

ObamaCare Will “Swamp U.S. Businesses With A Flood Of New Tax Paperwork” By “Radically Alter[ing] The Nature Of 1099s.” “An all-but-overlooked provision of the health reform law is threatening to swamp U.S. businesses with a flood of new tax paperwork. … The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.” (Neil deMause, “Health Care Law’s Massive, Hidden Tax Change,” CNNMoney.com, 5/5/10)

  • The Chairman Of The American Institute Of CPAs Says That The Requirement Will “Significantly Contribute To The Hurdles To Growth And Formation That Businesses Face.” “The revised 1099 law ‘may prove to be so burdensome to small businesses that we believe it will significantly contribute to the hurdles to growth and formation that businesses face,’ wrote Alan Einhorn in a letter to Congress last week. Einhorn is chairman of the AICPA’s tax advisory committee.”  (Jeffry Bartash, “Pressure Builds On Congress To Junk ‘Nightmare’ Tax Rule,” MarketWatch, 8/4/10)

“Jim Tisch, Chief Executive Officer Of Loews Corp., Whose Operations Include Offshore Drilling, Hotels And Insurance, Said Economic Growth Will Remain Sluggish In Part Because Executives Lack Confidence In The Obama Administration’s Policies.  (Andrew Frye and Katherine Burton, “Tisch Says Lack of Confidence In Obama Hurts Growth,” Bloomberg, 8/26/ 10)

  •  “Tisch, 57, Said President Barack Obama’s Health Care Reform, Financial Regulation And Moratorium On Offshore Drilling Are Keeping Businesses From Spending Money To Expand.” (Andrew Frye and Katherine Burton, “Tisch Says Lack of Confidence In Obama Hurts Growth,” Bloomberg, 8/26/10)

Charlotte Manufacturing CEO: Washington Policies Threatening Small And Medium- Sized Businesses. “But policies coming from Washington are threatening small and medium-sized businesses… In a period in which many believe that Big Business has cemented an unholy alliance with Big Government against the interests of ordinary Americans, it would do well for Washington to promote policies and practices that support small businesses and real job creation (not temporary Census workers or more government employees). For starters, Congress should immediately pass legislation extending the 2001 and 2003 Bush tax cuts. Jacking up taxes by $47 billion during the worst recession in 75 years is not the way to get businesses hiring again.” (Frank Dowd IV, Op-ed, “D.C. Threatens Small Business,” The Charlotte Observer, 6/18/10)

National Center For Policy Analysis (NCPA) Study Finds ObamaCare’s Small Business Tax Credit “Could Negatively Impact Small-Business Hiring Decisions.” “A study by the National Center for Policy Analysis shows that tax credits in the new healthcare law could negatively impact small-business hiring decisions. The new law provides a 50 percent tax credit to companies offering health coverage that have fewer than 10 workers who, on average, earn $25,000 a year. The tax credit is reduced as more employees are added to the payroll. The NCPA study finds the reduction in tax relief to be a cost concern for companies looking to hire additional workers, but operate on slim profit margin yet still provide employee health coverage.” (Jay Heflin, “Report: Healthcare Law Tax Credits Encourage Small Businesses To Stay Small, Not Hire,” The Hill’s “On The Money” Blog, 5/23/10)

 

OBAMA CLAIMED HIS MAIN FOCUS IS ON THE PRIVATE SECTOR

 

OBAMA CLAIMED: “My Entire Focus Right Now Is To Make Sure That The Private Sector Is Thriving, Is Growing, Is Investing. . . . I Think We’ve Been Very Responsible Stewards.” (CNBC’s, “Investing In America: A CNBC Town Hall Event With President Barack Obama,” 9/20/10)

 

Since The Stimulus Was Passed, The Public Sector Has Lost 128,000 Jobs, While The Private Sector Has Shed 2,384,000 Jobs. (Bureau Of Labor Statistics, “The Employment Situation – August 2010,” BLS.gov, 9/3/10)

Small Businesses “Sidelined” By Obama’s Reckless Agenda. “Mom-and-pop firms, usually the first to resume hiring, are stymied by slow demand, the real estate slump and uncertainty about the future.  … Adding to the uncertainties for businesses of all sizes are the shaky global economy and the prospects of higher taxes to deal with the federal deficit and higher costs to deal with healthcare and the recent government overhaul of financial regulations.” (Don Lee, “Small Business Sidelined In Slow Recovery From Recession,” The Los Angeles Times, 7/3/10)

  • And Uncertain About Their Future Due To A Bevy Of New Taxes And Regulations. “Joy Staveley of Flagstaff, Ariz., said it was clear to her why people are more scared to take a risk on a new business: There are more regulations, taxes and government-mandated costs — and fears of more to come — with President George W. Bush‘s tax cuts expiring soon, new healthcare rules and pending legislation on energy.” (Don Lee, “Small Business Sidelined In Slow Recovery From Recession,” The Los Angeles Times, 7/3/10)

Small Business And Entrepreneurship Council President Says Dems’ Tax Hike Along With New Regulations Are Making “Small-Businesses Owners Feel As If They Are Under Siege From Washington.” “Kerrigan, however, argues that new regulations from the Department of Labor, the Environmental Protection Agency and the IRS, along with the expiration of Bush-era tax cuts and new proposals affecting telecommunications, energy, healthcare and financial services have helped small-business owners feel as if they are under siege from Washington. These issues have also stopped them from hiring until they have a clearer picture of what the regulatory landscape will look like in the near future.” (Jay Heflin, “Small-Business Advocate Says Lending Bill Will Not Help Economy,” The Hill, 8/31/10)

“The Bulk Of Job Losses At The End Of Last Year Were Concentrated In The Smallest Firms, Underscoring How Small Businesses Are Lagging In The Economic Recovery.”  (Sara Murray, “Small Firms See Bulk of Job Losses,” The Wall Street Journal, 8/18/10)

“Businesses With Fewer Than 50 Employees Accounted For 61.8% Of All Job Cuts In The Private Sector In The Fourth Quarter, The Labor Department Reported Wednesday …”  (Sara Murray, “Small Firms See Bulk of Job Losses,” The Wall Street Journal, 8/18/10)

OBAMA CLAIMS IT’S IRRESPONSIBLE TO MAINTAIN TAX CUTS

 

OBAMA CLAIMED: “This Is A — It Is A Irresponsible Thing For Us To Do. Those Folks Are The Least Likely To Spend It.” (CNBC’s, “Investing In America: A CNBC Town Hall Event With President Barack Obama,” 9/20/10)

“Letting The Bush-Era Tax Cuts Expire For The Top Two Brackets Will Hit Much Of The Nation’s Non-Corporate Business Income, Earnings That Are Highly Productive And Sensitive To Taxation.”  (Scott A. Hodge, “Over One-Third Of New Tax Revenue Would Come From Business Income If High Income Tax Cuts Expire,” Special Report No. 185, The Tax Foundation, September 2010)

Nearly Half Of The Business Income That Is Reported On Personal Tax Filings Goes To Families And Businesses That Would Have Their Taxes Raised By Dems. “The numbers are clear. According to IRS data, fully 48% of the net income of sole proprietorships, partnerships, and S corporations reported on tax returns went to households with incomes above $200,000 in 2007. That’s the number to look at, not the 3%.” (Kevin A. Hassert and Allan D. Viard, Op-Ed, “The Small Business Tax Hike And The 97% Fallacy,” The Wall Street Journal, 9/3/10)

Moody’s: “Many Of The Most Successful Business Owners, Those Who Are Presumably Doing Much Of The Hiring And Investing, Are Hurt By The Higher Tax Rates.” “Since small businesses have historically been the engine of the nation’s job machine, tax hikes on the wealthy would deal a serious blow to job growth and the broader economy.10 This argument is often overdone by its proponents–only about 3% of small business owners pay the higher tax rates–but it has some merit (see Table 3). Many of the most successful business owners, those who are presumably doing much of the hiring and investing, are hurt by the higher tax rates.” (Mark Zandi, “The Economic Impact Of Tax Cut Proposals: A Prudent Middle Course,” Moody’s Analytics, 9/15/10)

Moody’s Mark Zandi Says That Raising Taxes On High Earners Could Reduce Economic Growth And Cost The Nation’s Almost A Million Jobs Through Mid-2012. “According to Moody’s Analytical model, raising taxes on higher-income households as the president has proposed would reduce real GDP by 0.4 of a percentage point in 2011 and 0.2 of a percentage point in 2012. Payroll employment would be 770,000 lower, and the unemployment rate would be almost 0.4 of a percentage point higher by mid-2012 at the peak of the impact.” (Mark Zandi, “The Economic Impact Of Tax Cut Proposals: A Prudent Middle Course,” Moody’s Analytics, 9/15/10)

  • And Moody’s Model May Be Underestimating The Impact That Higher Taxes Would Have On The Critical Spending Habits Of High Income Households. “While the recovery would be weaker because of the hikes on the wealthy, it would not come undone. But these are not most times, and the model may be underestimating the negative economic consequences of raising taxes on the well-to-do. This group panicked during the recession, spending less and saving more, and while they regained their bearings about a year ago, allowing the economy to recover, they appear very skittish.” (Mark Zandi, “The Economic Impact Of Tax Cut Proposals: A Prudent Middle Course,” Moody’s Analytics, 9/15/10)

 

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