Taxes Are Up and Entrepreneurship Is Plummeting

The tragic new normal for small business under Obama.

closed-businessThe Obama Administration continues to punish the successful, so it is not surprising that according to a new study by the Ewing Marion Kauffman Foundation entrepreneurship is falling. Small businesses, traditionally the biggest job creators, are being started at a lower rate than previously reported. In an environment where one is expected to take risks, but not receive rewards, it simply isn’t surprising.

Economist Tim Kane reviewed U.S. Department of Labor data and found the following number of startup jobs per 1000 Americans according to presidential administration:

Bush Sr.: 11.3

Clinton: 11.2

Bush Jr.: 10.8

Obama: 7.8

And as an entrepreneur who founded 5WPR, it's no surprise that the number of people taking a risk to go out on their own is lower than ever before. As one who was raised in a single-parent household, I sacrifice many hours of family and personal time so I can provide my family – and future generations of my family – with wealth which I didn’t have growing up.  It isn’t so I can pay more taxes and help create bigger government. I don’t work 70-80-hour weeks so my PR agency can continue to grow so I can pay more than 50% in taxes as I currently do. I didn’t start a business so after I drop dead my heirs can pay a death tax because I was a great employer for many people – and sacrificed many hours with my family.

While the United States used to be a great place for business, today by reading the media we see regular disturbing news – like:

The Senate passed a bill for a new Internet sales tax, which will allow states tax more as they collect sales taxes for online purchases – and will allow Obama to continue creating a bigger government. The Marketplace Fairness Act (a great PR name) will make it much harder for small businesses and entrepreneurs to succeed – and will end up rising costs of products. Raising taxes in this manner is a simple redistribution of wealth where online retailers will now be required to collect sales taxes from consumers for the state where they ship goods. Ridiculous.

As a result of Obamacare, according to the Congressional Budget Office, between seven to twenty million Americans will lose their employer coverage because of Obamacare.  Unsurprisingly, costs for employers rise across the board due to Obama’s policies.  For example, Maryland's biggest insurer, nonprofit CareFirst BlueCross BlueShield, will raise rates 15% next year. Does anyone who actually owns a business believe that these policies are good for anyone? Or is someone simply standing around asking people if they want “free things”?

In New York City, the labor-backed Working Families Party is demanding approval on new hotels —anywhere in the five boroughs— from any candidate they endorse.  The city is overwhelmingly liberal Democrat, so this is expected in this city.  Undoubtedly, this news won’t resonate with a major client of ours, who has opened a dozen or so boutique hotels in the city.  But, he is about job creation – and not the union.  So forget the fact that he’s an immigrant who has succeeded in what he thought was the way of America. Instead, he’ll be expected to grovel to socialist unionists.

While liberals talk and raise taxes, President Obama’s policies hurt businesses and the economy.  Then again, as Jay Leno of the Tonight Show on NBC said: if Barack Obama really wanted to close down Guantanamo Bay, he should “do what he always does: declare it a small business and tax it out of existence.” It is sad but true.

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