Obama view on small business is diconcerting
Jorge Hugo Garcia,PhD.
When Obama talks about taxing businesses that make over $250,000 per year, those ignorant about small business economics will raise their hands and shout out “Hallelujah.”
The problem never mentioned is compounded at the end of each year when the numbers fall in place and it is time to pay the piper. There are thousands of businesses who go under each and every year because they suffer from the same Obama delusion.
A small business can very well bring in $250,000 a year; there are thousands across the nation that do. Here is the problem, by the time you deduct the cost of your merchandise, payroll, Payroll related insurance costs and matching deduction costs, mandatory federal, state and local taxes, advertising, mandatory insurance, facility costs and variable costs of doing business such as gas which fluctuate from day to day, most small business owners are lucky to be earning a minimum wage.
To be considered wealthy because small business owners have an entrepreneurial heart and are willing to take a risk is the peak of “stupid.” As an authoritative figure to further encourage additional taxation because they do not understand the concept of actually working for a living is not only dangerous to our economy, it is further economic chaos waiting to happen.
The Republican party who believe me, have their own faults, understand the difference between Gross and Net and for a small business, that is the equivalent of knowing the difference between heaven or hell or to put in a less controversial way, between success for a small business and certain failure.
Most businesses large or small must depend on the banking system to maintain a liquid cash flow. From month to month it is difficult to convert the income supposed to be coming in from creditors with the actual cash on hand you need to meet payroll, pay the rent, keep the lights on, your vehicles moving and etc. Small businesses primarily minority businesses who do not have access to these variable rates funding sources are continually at wits end. The last thing needed is another tax increase.
The majority of the public has no idea what it takes to run a business and how much you will actually have left. Major super markets for example have massive parking lots, massive amounts of food on their shelves and all the appearance of making a fortune. The average American citizen will be surprised to learn their profit margin averages 2%. If a major business such as your corporate corner grocery market averages 2%, would it surprise you to learn a small business who cannot buy in bulk by the train load will average less of a profit? It should not! Most small businesses are hanging on by their finger nails from day to day. I am talking about your nail shop, your bakery, your favorite restaurant, your barber or beauty salon, your mechanic, your local hardware store, your favorite café or your favorite franchise at the mall or in your neighborhood.
The “Spread the Wealth” concept proposed for small business making $250,000 a year by Obama is the most regressive, egregious concept to actually be placed under consideration. The markets massive fluctuations reflect that uncertainty. What lunacy will the engine for our economy, America’s job creators, small business have to deal with in the next 60 days?
Be wary of the Obama mystic, when it comes to the economy, he knows not of what he is talking about!!!