Last Night’s Debate Stirs Up Talk About Small Business
In last night's debate, Romney and Obama argued over small business and how taxes play a deciding role in the industry. Both agree that there needs to be a cut in taxes for small business, but both were on different playing fields when it came to defining small business. According to the polls (CNN/OR), debate analysts, and the buzz on Twitter, Romney was the winner last night, but winner or not- do we like his ideas about the future of America (more specifically, small business!)? I guess that's up to you to decide.
Here's the recap: Romney came out guns hot in the first round, describing in detail his five-step plan for creating jobs and restoring the economy. One of his steps is to "champion small business." He tells us that since Obama has been in office, people are reluctant to start their own business because they’re afraid of big government raising income taxes (among other things).
"It's small business that creates the jobs in America. Over the last four years small-business people have decided that America may not be the place to open a new business, because new business startups are down to a 30-year low,” Romney said.
On the other hand, Obama agrees with Romney in regards to encouraging the growth of small businesses and they both share a desire to cut taxes. But he claimed he has cut taxes, in fact, 18 times since he took office. He proposed to the American people last night to keep continuing tax cuts for small business and middle-income families.
Most of us know what small business entails- independently owned and operated, and usually employing less than 500 people. Romney says small businesses are taxed at an individual tax rate, not a corporate tax rate that bigger businesses pay. He pledges if we decrease the individual tax rate, small business will pay lower taxes and therefore be able to make money and hire more employees. His goal in lowing taxes for small business is to create more jobs for Americans. Lower taxes equals more money to hire.
Obama sees this very differently. He believes Romney thinks small business consists of millionaires and billionaires; he used Donald Trump as an example of small business. Under his plan he wants to eliminate Bush-era tax cuts for anyone who makes more than $250,000. In doing so, nearly all of small business would not see their income tax increase.
What does this mean for the future? Well, it depends on the level of taxes small business will have to pay. If they are on the rise in the next few years, small business will struggle. It’s a fact. Small business owners wants to see lower taxes in order to be able to keep the money they earn and expand their business.
Business owners: keep your eyes and ears open, this election may or may not be very critical to your company's future!
"We're a small business, we launched about May of last year and we grew dramatically. We went from myself and my wife to now 8 full-time employees; we expect 20 in 2013.”
"For someone like myself Obamacare makes health care affordable for my employees."
"If you're business and you're looking to grow, you have to have an idea on how you forecast and how you're going to plan on your growth and who your going to hire. Without us and without knowing the tax credit available under 25 employees, it’s a difficult to plan.”
“If you look at this generation coming up, this generation is more entrepreneurial. I work with kids out of college that say I know what happened to my mom and dad, where they got laid off and they’ve been through the recession. They say I don’t want that to happen to me, I’m going to create my own job, I’m going to go out and create a business, make a dollar and create something in the world. That’s what I’m looking for. Are you going to help those who are risky enough, foolish enough to go be an entrepreneur and go make something, what are the incentives to do so?”
“I’m looing at how you are going to help small business. I’m that 96 percent; we don’t have over 50 employees, but we will. What are the steps to help us grow in that direction so it’s in their risk for us, so I’m not on the other side of the fence saying, it’s a tax, it’s not worth it for me.”