By Wayne Allyn Root, Former Libertarian Vice Presidential Nominee and Author of “The Conscience of a Libertarian”
I’ve started more than a dozen small businesses. For one, over $20 million was invested by me and investors who believed in me. I’ve paid payrolls, health insurance, payroll taxes, workers comp, and unemployment insurance for hundreds of employees.
Because of that, my employees were able to pay their mortgages, buy groceries, send their kids to college, and provide for their families. For this same small business, I spent about $50 million dollars on things like advertising, marketing, promotion, lawyers and accountants. That money enriched and employed thousands of others. And, that’s just one small business. Think of the impact that thirty million small business owners have on the U.S. economy. No wonder we create 70% or more of America’s new jobs. Small businessmen and women are a far more powerful economic force than Exxon, Microsoft, GE, or WalMart.
So why do Obama and his socialist cabal hate us? Why do small businessmen and women feel demonized and punished? Why is it Obama’s goal to drive us out of business?
Mug or rob me once? Maybe it’s ignorance or a mistake. Twice? It’s a pattern. But, coming up with ways to rob and destroy me and my businesses on a daily basis? It’s time to get the message. Without a doubt, Obama and the progressive left are the enemy of small business.
Let’s look at the facts.
For 30 years I have been able to deduct mortgage interest from my taxable income. Obama wants to end that. How many so-called "wealthy" taxpayers (i.e. small business owners) would no longer be able to pay their mortgage? How many homes would go into foreclosure? What would happen to the housing market? Overnight every home in America would lose 40% of its already decimated value. How many small businesses earn a living off of real estate? How many millions of jobs would be lost? Does this sound like a President looking to create jobs?
For 30 years FICA taxes have been based on earnings currently capped at just over $100,000 per year. Obama wants to remove the cap, thereby hitting small businessmen with the largest tax increase in history. Overnight a small business owner making $500,000 per year would see his or her FICA plus Medicare taxes go from about $15,000 per year to $75,000. That’s $75,000 before federal or state income taxes. That’s a $60,000 per year tax increase for a small business owner. That would drive hundreds of thousands of small business owners out of business. It would force layoffs. It would lower consumer spending and kill more jobs.
For 30 years I ran my business without the extra taxes to pay for Obamacare. Now we face new taxes on income, stock sales, home sales, even on tanning beds! Worse is the provision mandating we report annually to the IRS every vendor from whom we purchase more than $600 of goods and services during the year. The cost of complying with this Big Brother Gestapo mandate is unfathomable and threatens to drown millions of small businesses in paperwork.
For 30 years, most small businesses could raise capital without government permission. Obama and his socialist friends in Congress want to change that. Last year Democratic Senator Dodd tried to pass financial reform that included a provision increasing the amount of money one would have to earn to be considered an “accredited investor.” That would reduce the angel investor pool by an estimated 70% and require most PRIVATE businesses get permission from the SEC to raise money. Do you know what an SEC lawyer costs? Raising capital for any new startup would suddenly cost an extra $250,000 in legal fees…and take months, or years, to wait in line for SEC approval. This would kill new business start-ups. Who could come up with this idea? Only a Marxist looking to destroy the American economy, or perhaps a cabal of extortionist lawyers looking for government to mandate obscene new legal fees. Either way, it was a “Friend of Obama.”
For 30 years I ran my businesses without the White House being in partnership with the American Bar Association. Now Obama has found a way to encourage every lawsuit junkie and disgruntled employee to make up a story and sue their boss. Every caller to the White House alleging their boss has broken the law now gets assigned a lawyer willing to work for contingency (no fees up front). Say goodbye to American business…and goodbye to jobs.
Keep in mind that all those new taxes and regulations mentioned above are aimed at people who risk their own money to start businesses. Collectively we risk trillions. Our courage and capitalism fuels the economy and creates over 70% of new jobs. Our taxes pay for government and all those government employees with their obscene pensions. Running a business often requires working sixteen-hour days and is the hardest thing you’ll ever do. If our reward for all this risk, sacrifice and work ethic is to be punished and demonized, why would we keep doing it?
This is no mistake or coincidence. This is a purposeful plan to destroy capitalism. And the best way to destroy capitalism is to destroy small business. Obama is trying to redistribute our wealth and create a jobs crisis. He can’t stand that we small business owners don’t need or want government to save us. So he’s out to ruin our businesses, and bring us to our knees begging for government to help. And as a bonus, he gets to wipe out the biggest contributors to conservative causes — small business. In other words, killing small business wipes out Obama’s political opposition.
Yes, ladies and gentleman, we have met the enemy of small business…and he resides in the White House.
Wayne Allyn Root is a former Libertarian Vice Presidential nominee. He now serves as Chairman of the Libertarian National Congressional Committee. He is the best-selling author of "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts." His web site: www.ROOTforAmerica.com