So…Obama’s is bending the truth to the absolute breaking point…AGAIN…And it seems that nobody is going to call him out.
Well, almost nobody.
Obama made what SEEMS like an overstatement when he said, “I’ve cut taxes for small business owners 18 times since I’ve been in office.”
18 times huh?
Okay…Let’s take a look.
Indeed there have been 18 “cuts” for small businesses in the Obama reign but, one must use quotation marks when stating it because not all the “cuts” are cuts.
Just more than half of them are INCENTIVE based…”cuts” which means, if a small business wanted to take part in them those businesses would have to do something…spend…on things they did NOT do or spend upon BEFORE and those…”cuts”…would cover up to half of their new expenditures.
Therefore, small businesses would be required to spend to recoup somewhere between 35% to 50% tied to new “tax cuts.”
The Health Care Tax Credit is a prime example of this and so is the tax credit for hiring an unemployed worker.
There are also several “cuts” tied to the 2009 stimulus bill and are either extensions or expansions OF that stimulus bill like…An extension of 50-percent bonus depreciation.
Correct me if I’m wrong but, an extension of an existing tax break is not a NEW tax “cut” is it?
Also included in the magic 18 is…Temporary small-business estimated tax payment relief to allow small businesses to keep needed cash on hand.
In Obama’s world, a TEMPORARY measure equals a “tax cut.”
Then, there is…Limitations on penalties for errors in tax reporting that disproportionately affect small business.
THAT is actually a break for businesses making large “investments” or hiding money in tax shelters.
NOW, Obama tells us he wants to keep the Bush tax cuts in place for 1 more year but, he wants to hike up taxes on those making $150,000 per year or more.
First, let’s have a look at what small businesses are thinking.
The Small Business Optimism Index, as reported by the National Federation of Independent Business, dropped by 3 points last month bringing it to it’s lowest level since last October and resulting in it’s largest 1 month drop in the past 2 years.
What does THAT mean?
Simple. Small businesses are NOT optimistic regarding the economy.
Small businesses will not make long term decisions based on temporary measures and Obama’s 1 year extension of Bush tax cuts is nothing if not TEMPORARY as are many of his tax “cuts.”
There is another thing looming as well which should NOT be overlooked.
Small businesses are NOT happy with Obamacare as, over the next several years, more and more taxes will be enacted as part OF Obamacare AND…
With talk of repeal AND an election in the wings…Small businesses are viewing Obamacare as TEMPORARY as well.
So…When Obama says HE has cut taxes 18 times for small businesses…Small businesses are buying it and one of the big reason’s they’re NOT buying it is because those 18 “cuts” are more than offset by 20 NEW taxes via Obamacare.
Many small businesses have had to cut back because the economy is forcing their customers to cut back and those businesses are NOT going to make long term expansion plans based on temporary measures NOR are they about to make short term expansions based on tax “cuts” they can only take advantage of if they spend more than they can afford to spend.
Add to this, the fact that the Obama tax HIKE on those making $250,000 or more will amount to enough revenue to only offset 8 ½ days of government spending and small businesses just can’t see their way to boost THEIR spending.
Think about it…If YOU run a small business, would YOU believe that a measure, meant to punish your WEALTHIEST customers which would offset only 8 ½ days of GOVERNMENT spending is a good foundation on which to build YOUR future expansion?
Of course not.
Small businesses fuel the economy and of that, there can be no doubt.
To boost the economy, PERMANENT measures regarding taxes are necessary. LOWER taxes across the board will free up MORE cash and infuse the economy WITH it and capital investments BY small businesses but, Obama is dead set AGAINST it.
Here’s the bottom line.
There are now MORE qualified or OVER qualified jobs candidates on the market BUT…
More than 80% of small businesses, facing uncertainty brought about directly by Obama’s policies, say they either have no plans to expand hiring or frankly will NOT be hiring any time soon.
Obama’s solution to the economic mess is built upon a house of cards and small businesses are not at all inclined to stake their futures on something that could collapse as a result of a sneeze.
Obama can spend all the time he wants riding on unicorns but,dubious short term gains, based on Obama’s dubious claims are NOT the solution.
Tomorrow, right here in The National Patriot, we’ll have the LONG term solutions.
Don’t miss it!!!