Washington ‘uncertainty’ is hindering business & job growth

Posted By on September 14, 2010

Why don’t politicians understand that uncertainty is a primary deterrent to planning for the future, for an individual or a business … but especially for businesses. uncertaintyIn order for small business owners and  managers to reinvest and expand … and hire new employees … the political environment needs to be one where the prospect for success is good, after all profits are the motive in our capitalist system – we do all still believe in the power of free markets, right???

Those of us who have owned and managed “for profit” companies make decisions and take calculated risks in order to expand when conditions are likely to be positive for the bottom line. Who can comfortably say that that the current environment and policies (last few years) coming from the federal government are conducive for small business? I doubt an economics degree is required to answer the question as commonsense tells us that continuing to expand the size of government, add public taxpayer supported jobs with their step increases exceeding inflation and a benefit package far superior to most small business employees is not a good business climate. At the same time government expansion is happening, the congress and Obama administration then hits the business sector new regulations from health care to banking which has one wondering who will be paying these costs? Why stop there Mr. President, how about a tax increase? Is it any wonder the job creation is low; this is not what government does to create a good environment for business.

Why would a company add additional employees while facing higher government mandated health care and banking costs? Why would we want to add to our liabilities when Obama, Pelosi and Reed are telling us that taxes need to go higher in order to pay for spending. Even the most optimistic business with and in-demand product or service (might be a few) knows that bigger government with more debt is not going to be helpful in growing the overall economy or recovering from a recession.

Let’s elect better leadership this November. Find leaders who believe in smaller government and will legislate policies that create certainty for business. Give us a 10 year tax code, not an “extend for one year” or selectively targeted one time incentives which prevents long range business plans for growth. I disagree with a stimulus rebate here and tax credit there approach; business owners and managers need to be more confident where their cost will be before they invest and expand.

My West Chester Ohio neighbor and current house minority leader John Boehner was interviewed ongibbsboehner100913 Face the Nation with Bob Schieffer this past weekend and for all his candor tried to express the need to keep taxes unchanged for all Americans. He clarified to all that he sincerely desires to work with the current administration and was honest enough to say he’d vote not to raise taxes on the middle class if it were impossible to keep them unchanged for all. Unfortunately all he received back from the Whitehouse was the same ol’ personal attacks from the President and his press secretary Robert Gibbs. (sparring over tax policy)

Let’s not fiddle with tax rates and in fact, give Americans ‘planning’ confidence that rates will remain unchanged. I believe we have a good chance of this happening if the GOP majority is returned to congress (although I know many Republicans lost their way). Focus on electing free-market supporters that know businesses which grow will need to hire employees … and that the better and harder working the employee, the better pay and opportunity. Support fiscally conservative candidates who will reduce federal spending, shrink the size and the intrusion of government into the lives of individuals and return our nation toward the core principles of our country’s founding. We still have a great democracy and great citizens … it is time to wake up and realize that Obama’s “change” and desire for more government control or European style socialism is not the answer.

House Republicans are calling on Congress to take the following two actions this month:

  1. Pass a bill that cuts non-security related government spending for the next year back to FY 2008 levelsbefore all of the bailouts, government takeovers, and ‘stimulus’ spending sprees began.  On Monday, President Obama proposed another round of the same failed ‘stimulus’ spending that has led to fewer jobs and more debt.  The legislation House Republicans are proposing would provide the fiscal discipline economists say is needed to promote private-sector job creation and prevent a lame-duck Congress from writing another bloated omnibus spending bill after the November elections.  Exceptions should be made for programs affecting seniors, veterans, and national security.
  2. Enact a two-year freeze on all current tax rates to stop job-killing tax hikes on families and small businesses. This would help ease the uncertainty employers and entrepreneurs are facing so they can get back to creating jobs.  While President Obama intends to move forward with his plan to raise taxes on half of small business income in America, House Republicans will continue to fight to permanently stop job-killing tax hikes.

“The American people are asking the question, ‘where are the jobs?,’ and yet here’s the White House worrying about what I’ve got to say instead of working together to get our economy going again and to get jobs back in America,” Boehner said during the interview. “If we’re able to do this together, I think we’ll show the American people that we understand what’s going on in the country and we’ll be able to get our economy moving again and get jobs growing in America.”



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