Monday, September 15, 2008

Mr. Obama, If You Want My Vote ...

This is the most exciting presidential campaign I can remember in my 39 years. The possibility of having an African-American man for President or a woman for Vice President speaks volumes for our great country. The USA is still truly the land of opportunity.

Both candidates came from modest means and are now poised to run our country. I think the Founding Fathers would be proud.

I consider myself an independent (I voted for Bush and I also voted for Spitzer. Ooops!). Call me a liberal Republican or a conservative Democrat, I have always voted for the person, not the party. I agree with the Democrats that we should have heart and help people in need. Obviously, I am also a big fan of education. I am on the side of Republicans when it comes to the people making things happen -- not the big government.

Until about a month ago, I was seriously vacillating about whom to vote for. I feel as though Obama and McCain are both good men of integrity and values. I'd have a beer with both of them! This is refreshing because four years ago, I wasn't jazzed about either candidate. Kerry put me to sleep, and I wanted to give Bush grammar lessons. Flippant response I know, but it concisely sums up my feeling towards the two men.

Obama and McCain also both have impressive stories. Obama's rise from nowhere illustrates that the American Dream is still alive. McCain's impressive record serving America in war, politics, and as a POW makes him a true American hero in my book. I think they both have good intentions for America and good hearts.

But as a small business owner, Obama just lost my vote. His tax plan is an assault on all S Corporations and sole proprietorships (most small businesses have one of these structures). His plan to raise taxes on households making more than $250,000 will increase taxes on most small-business profits in America. This is money that could be reinvested for company growth or raises.

To understand my point, you have to understand how an S corporation works. If an S corporation makes a profit of $300,000, the owner gets taxed on $300,000 regardless of whether the owner takes all of that money out of the company. So let's say the profits were $300,000, and I only take $100,000 out of the company this year. I still get taxed on $300,000! Even though it looks like I personally made some major dough this year, that's only one-third true.

Currently S corporations face a top tax rate of 35 percent. Under Obama's plan, the rate would increase to almost 40 percent. And it might not stop there. Many Democrats in Congress have proposed making all small businesses pay a 50-plus percent tax rate. This would kill the entrepreneurial spirit in America, in my opinion.

I realize that I am choosing to look through the lens of small business to make my point. That’s because it affects me personally (actually, everyone because of the damage it can do to the economy - can it get any worse?). I also realize that there are many more issues to look at, like the world liking us again (Obama wins here), national security (McCain), the economy (tough one since neither one has had to personally worry about payroll) and many more.

But I chose the lens of small businesses because we are one of the last unique competitive advantages America has. We are currently the back-bone of America. Take us out, and there goes the rest of what's left of our economy.

I worked very hard starting my business and consider the opportunity for me to do so, a part of the American dream. It wasn't handed to me. I came from modest middle class means and I have worked hard to create my success. My company, Next Step Publishing, now supports many families with a decent sized payroll.

I think it's a mistake to blame "the rich" because often it's not a rich person; it's just a small business owner trying hard to make a go of it and support some families and communities along the way. We don't need another wrench thrown on our spokes.

My business may lose $8K to $12K next year over Obama’s plan. This is not a huge amount and is not really going to impact my lifestyle or my decisions. But multiply me by 25 million small business owners in American and now you’re not talking chump change. So now it becomes over principle. Would that money be better going to government or staying in the hands of small business owners who will reinvest it in the economy somehow. And couldn’t we find this savings elsewhere? Perhaps with cutting pork and unnecessary earmarks?

Mr. Obama, tear down this tax hike. (Then, I'll consider voting for you.)

3 Comments:

At September 16, 2008 at 4:20 PM , Anonymous Anonymous said...

I understand your concern.. but there's a far bigger picture.

http://firedoglake.com/2008/08/02/a-vicious-downward-spiral-or-how-this-economy-is-going-to-play-out-revisited

It's because of this war that we are in this mess. Even if McCain does go into office, he won't be able to afford not to Raise taxes.. only with his program the rich will continue to get saved "and keep there personal drivers", and the middle class will suffer.

 
At October 4, 2008 at 8:20 PM , Anonymous Anonymous said...

Thank you so much for putting this in perspective for me. I am also a small business owner who is very concerned about the Obama tax plan. I do understand we need to help the middle class but I also feel he is penalizing the people who are successful in America. Between oil and the cost of living increasing, any tax increase on my business will be horrible. So horrible that I might need to lay off people and if I am thinking of that I bet others are as well. I don't think we need govt any bigger instead I think we need to put the money back in the hands of Americans so we can stimulate the economy. Obama is NOT the right person to lead our country!!!!

 
At October 16, 2008 at 1:00 AM , Blogger Daniel Driffill said...

I love your blog- read every update- but this is wrong.

Trust me, I get it, my family is run on a C-Corp and I have been raised on the ins and outs of American biz structure. But me, I'm willing to pay more for those that can't pay for themselves, I know that is controversial, but that is the America I was raised on.

This election extends beyond tax considerations. Out world standing is at stake. The world wants Obama to be the American president. Fact is America has lost significant power over the past 8 years of failure and the nations with the necessary preconditions to attain 'Superpower' status (China, Russia, India) have gained leverage.

We must act Dave. This election boils down to progressing into the next 8 years and beyond or conservatively retaining our last failed 8 years.

Your business is our nation's youth, I am such, and McCain is just wrong. I am open to discuss this further. Again, I enjoy your opinions usually.

 

Post a Comment

Subscribe to Post Comments [Atom]

<< Home