07 July 2008

McCain campaign event for small businesses


Recently I joined Senator John McCain’s Georgia Small Business Leaders steering committee, and this morning I participated in a press briefing organized by the McCain campaign, with the objective of highlighting the differences between the candidates' economic plans. As this was my first speech of this sort, I asked the campaign folks for guidance. They urged me to personalize the suggested talking points.

As it turns out this was not difficult. Over the next few posts I'll discuss the issues that directly affect my small business, beginning with the basic philosophy of the role of government.

Thankfully starting a business in Georgia isn't hard. The secretary of state makes it easy to register an LLC, and even the IRS simplified obtaining an employer identification number. My business doesn't require a special license, which can be onerous to obtain in some states. I share Senator McCain's belief that the best government is a small government, whereas I have yet to learn of a program or policy proposed by Barack Obama that doesn't involve government growth.

While planning the start-up phase of my business, I understood that my income would drop substantially from my previous corporate gig. To help bridge that gap I’m depending on income from my investments, which are taxed as capital gains. Senator McCain will maintain the current taxes on capital gains, while phasing out the AMT (alternative minimum tax). Senator Obama, on the other hand, has proposed increasing not just capital gains and dividend taxes, but income taxes, Social Security taxes, energy taxes, and business taxes.

The increased burden of Senator Obama’s proposed tax increases would A) make it much more difficult for potential owners to make the financial case of starting their own businesses, and B) reduce the money available for existing owners to invest back in their businesses.

How important are small businesses? In Georgia alone there are ~860,000 small businesses, and these are responsible for an astonishing 98% of all jobs in the state. Senator Obama’s proposal to nearly double the capital gains tax would clearly hurt the 618,000 Georgians who reported capital gains income in 2006.

Taxes aren’t painless, esoteric nuisances that affect only the wealthy. They directly impact business owners’ ability to reinvest in and grow their businesses, and small businesses are responsible for the majority of job growth in this country.

In future posts I’ll note how the proposals of Senators McCain and Obama influence other aspects of small businesses.

2 comments:

hs430@aol.com said...

Ray!!! It's Heather from SU! Your housemate! I just came across your blog & couldn't agree w/u more! Haven't seen u since my wedding here in cuse but I see congrats r in order 4 you & your wife!please let me know u got this & we can catch up!

jeff968 said...

Hi Ray, Jeff Coe from our favorite car group. I sold my cab last year and purchased another cab. Talk about unusual, wait until you see it. I hope you are well. Remember my son Greg, he's 16 now!!! I would like to talk to you about .net sometime. Send me an email at jeffery.coe@snet.net
Take care, Jeff