Tag Archives: small businesses

Who Is Favored In The Biden Economic Plan?

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Yesterday The New York Post posted an article about the Biden administration’s economic plans. The Biden administration is not friendly to small businesses.

The article reports:

Over the last several months, small businesses persevered the best they could, holding on until “temporary” welfare programs driving people away from work expired. But if there were any doubt left that Dems’ ultimate goal wasn’t a temporary boost to Americans most impacted by lockdowns, but rather a calculated step toward government control and socialism, their proposed $4.3 trillion tax-and-spend bill removes it all ($4.3 trillion is the true cost, as we learned in the Budget Committee). 

Walk down any main street or city avenue in America today, and you will see sign after sign with help-wanted pleas, hiring incentives or apologies in advance for shortened hours and delayed service due to staff shortages. There are nearly 11 million job openings nationwide, and our small businesses are trying to get back on their feet after the crushing lockdowns. 

But where are the workers? The short answer is that the Biden administration is more interested in handouts that pay more, or just as much, to stay home than going back to work. Since taking office, President Joe Biden and congressional Democrats have prioritized big government over earned pay stubs. 

The article concludes:

Biden and the Democrats’ plan raises the corporate tax rate to 26.5 percent, even further away from a proposed “global minimum tax” of 19 percent that will drive more businesses overseas, further discouraging production and innovation in America.

The Democrats argue that big business can afford to pay more. But aside from their hypocrisy that creates new carve-outs for rich university endowments like Harvard, their plan hurts the little guy. By removing deductions and increasing taxes by nearly 4 percent for business owners that operate as “pass throughs,” the plan puts at risk small businesses that have been struggling since March 2020 — and the new ones created since the pandemic under assumed tax burdens.

As a former small-business owner, I know these conditions aren’t sustainable. Americans don’t deserve to bear the brunt of policies pushed by people in Washington who will never feel the effects of them, and who will receive a healthy paycheck each month no matter what.

The Democrats’ idea of an economic plan is to punish citizens who are producing for our country and working to support their families, while rewarding themselves and others for staying home.

This is not sustainable. If the Biden economic plans pass Congress, we will soon be living in a country we won’t recognize.

What’s Good For The Goose…

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Townhall posted a very interesting article today about the possibility of a government shutdown.

The article notes:

In late September, Congress passed a bill to keep the government funded at current levels through this Friday. Trump has refused to sign the comprehensive funding bill tied to providing new $600 stimulus checks to qualifying Americans. It’s clear that they don’t have much time to resolve their disagreements and pass a law President Trump will support.

Most likely, they will pass another extension, but Trump has already signaled he would rather use a pocket veto and let the next president handle the issue than sign a bill he can’t support. Such a standoff risks a government shutdown if a solution cannot be passed and signed.

President Trump has had three shutdowns in his term as president, the longest being 35 days between December 2018 and January 2019 over the issue of funding for the border wall. That shutdown forced about 800,000 federal government workers to go on furlough without pay. If an extension is not passed to avoid a shutdown, thousands of government workers considered nonessential would again be furloughed or forced to work without pay until the shutdown ends.

Government leaders love to say how they experience our pain for the lockdowns generated in many Democrat controlled states and cities during the COVID Pandemic restrictions. Many Americans have lost jobs; some have lost their businesses. Government workers can talk as though they understand, but they’ve had no cuts in salary or their retirement plans. They have been insulated from the consequences of their own actions.

While small business and their employees have been suffering, big box stores and Amazon have seen large profits. While your neighborhood restaurants and bars have been closed, many larger restaurants with more physical space have managed to remain open at partial capacity. The impact of the shutdowns has been very uneven, with small businesses and their owners being hit the hardest. Meanwhile, Congress and federal employees have continued to receive full paychecks. The people who made the decision to shut down have generally not suffered the consequences of that decision. Seems a little unfair.

The article concludes:

Currently, government workers have no skin in the game. There is no shared sacrifice. When any shutdown furlough ends, they’re usually paid retroactively for what income they lost. What do our citizens get for having their businesses closed and their jobs lost—$600 or maybe $1,200. Citizens will get crumbs and the promise of higher taxes.

President Trump came to Washington to take on the swamp. It put up more of a fight than expected. In fact, if the results of this election stand, the swamp will have won. The Biden administration has no plan to cut back the size of government. No, his plan is to feed the beast and free it to take control of more of your life.

Could we shut down government for two years until the mid-term elections? Unfortunately, probably not.

It’s time for the President to just say no to the ridiculous pork in the spending bill and send more money to the people who have actually been hurt by the shutdowns.

Ignoring The Backbone Of The American Economy

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The Democrat party used to be the party of the working man. I am not sure they ever represented the American entrepreneur, but some recent statements by Marie Harf suggest that the small businessmen in America have been willingly thrown under the bus by today’s Democrat party.

BizPac Review posted an article yesterday about some recent comments by Marie Harf on Fox News Sunday.

The article reports:

In response to a statement from host Chris Wallace that, while 66,000 people have died from coronavirus tens of millions have lost their jobs, Harf appeared to suggest that reopening small businesses wasn’t going to produce much in terms of bolstering the economy.

“We are about to embark on a situation where we’ll see if people can, on their own, social distance, if people independent of government regulations or stay-at-home orders, can act responsibly,” she began.

“And if they can’t, and if we see spikes in some of these places, will these governors be willing to change course in midstream? That’s something we will all see together in real-time,” Harf continued.

In fact, some experts have predicted there will be “spikes” on coronavirus infections because they maintain that keeping Americans at home prevented the formation of “herd immunity” that is necessary to prevent recurrences of the outbreak.

In any event, Harf continued with Left-wing talking points, claiming the country needs “more testing” and “contact tracing” of people who are infected, — the latter of which is code for ‘invading privacy’ with a government-mandated tracking app.

“So, the economy, even if we open nail salons, hair salons Chris, the economy isn’t really going to get going again until we can travel, until we can move around the country,” she claimed. “It will not get going in a really meaningful way by opening small businesses in certain places, and so we have to get all of those things I just mentioned to eventually get to a place where the economy really can open back up.

“That is not happening anytime soon,” Harf said.

Just for the record, Inc. posted an article that illustrates how many Americans are employed by small businesses.

The article reports:

As of the 2010 Census, there were 27.9 million small businesses registered in the United States, compared to just 18,500 companies of 500 employees or more. Included in that total figure are sole proprietorships (73.2 percent), corporations (19.5 percent), and franchises (2 percent). 52 percent of small businesses are home-based. The most important thing to note? 99.7 percent of U.S. employer firms are small businesses.

I am not convinced that anyone in the Democrat party has studied either economics or the American economy.

Congress Shall Make No Law…

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Townhall posted an article today calling attention to one aspect of the response to the coronavirus that needs to be looked at closely.

The First Amendment of the U.S. Constitution states:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

The headline of the Townhall article states, “If ‘Congress Shall Make No Law…’ Why Can Governors?” That is a very good question. I realize that the coronavirus is real and that it is a threat to certain groups of our population. But it is not a threat to everyone. There are people who could easily continue to go about their business without negatively impacting anyone, yet that has not been allowed to happen. If my Facebook feed is accurate, many small businesses have been shut down while the big box stores have been allowed to remain open. Assuming small business owners can practice social distancing in their stores, that makes no sense (unless there is an ulterior motive).

The article at Townhall notes:

The First Amendment states, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.” That’s unambiguous. Not “pretty unambiguous,” just unambiguous. Full stop. Yet governors across the country are ignoring or suspending almost every one of those rights enumerated at the top of the Bill of Rights, with little to no pushback from the press, which just happens to be the only part of the first two amendments not under assault.

It’s actually not under assault — it’s gone — suspended indefinitely in the name of “the common good.” Governors have declared coronavirus emergencies and wiped clean the rights our nation was founded for the purpose of putting those rights beyond the reach of government.

These suspensions were not done by vote; they were done with the stroke of a pen. Constitutionally, they can’t be done by either. There is no provision of the Constitution allowing for the waiving of rights under any condition, but most legislatures are content to sit back and watch this all proceed without their fingerprints anywhere near it.

Governors made a point of canceling Easter services, even at drive-in churches set up in parking lots. “You’re not allowed to leave your home,” they declared. The irony of placing innocent Americans under house arrest while releasing prisoners in the name of “compassion” was lost on journalists too busy expressing indignation that people might want to worship even in the face of a pandemic.

The article concludes:

Now they’re taking to the halls of capitals, to the streets. Police are being ordered to put down offenders demanding their liberty back. Many police departments are refusing, but an alarming number of them are complying. It was impossible just two months ago for the answer to the jailhouse question of, “What are you in for?” to be answered with, “I went to the beach,” yet this is the reality under many Democrat Governors.

We will wrestle our freedoms back and soon. When we do, it’s important to remember not only who took them and why, but who tried not to give them back. From Maine to Michigan, from Illinois to California, they were progressive Democrats. They didn’t see coronavirus as a tragedy. They saw it as an opportunity. As Hillary Clinton said last week, “this would be a terrible crisis to waste.”

This is the Democrats’ nature: they know better than you do what you need, they are better than you are, smarter than you. Coronavirus just allowed a peek into their minds. Individuals are irrelevant to the left, as are your rights. The Constitution is an obstacle to be overcome, by any means available, not the restraint on their power it was written to be. Remember that come November…or you soon won’t be allowed to say it.

Our freedom is in danger. We need to wake up quickly.

Selflessness In A Crisis

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Yesterday Fox Business posted an article noting that Shake Shack Inc will return the small business loan it received from the U.S. government.

The article reports:

The company will immediately return the entire $10 million SBA loan as it was able to raise additional capital, CEO Randy Garutti and founder Danny Meyer said in a blog post on Monday. Last week, it raised about $150 million in an equity offering.

…Shake Shack said the money it received could be reallocated to the independent restaurants “who need it most, (and) haven’t gotten any assistance.”

The company runs around 189 restaurants in the United States, with about 45 employees in each outlet, and reported nearly $600 million in revenue for 2019.

It has closed about half of its 120 locations worldwide, and furloughed or laid off more than 1,000 employees after sales fell 28.5% in March, the company said in a filing on April 17.

This is an interesting decision. First of all, it frees the company from any restrictions or limitations that were put on the government handout. The government loans to businesses would only become grants if the companies retained 75 percent of their employees. By returning the money, Shake Shack is free to make decisions of what is best for both the business and the employees. I don’t know if that was part of their decision making process, but it is part of the federal loans to small businesses program. All of us need to remember that when there is federal money involved there are strings attached–those strings can be about the size of the cables that hold up suspension bridges.

Going Further Into Debt To Support Terrorism

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On Friday, The Daily Wire posted an article about some of the recent discussions happening in Congress. The article notes the Senator Ted Cruz has criticized Senator Diane Feinstein because she is trying to appropriate money to send to Iran (the world’s major fund source for terrorism).

The article reports:

Texas Sen. Ted Cruz unloaded on his Democratic colleagues on Friday in response to Sen. Dianne Feinstein sending a letter to President Trump declaring that she is “disappointed” in his administration’s plan to block funding to the world’s leading state sponsor of terrorism, Iran. The Democrats’ demand of Trump to help Iran get $5 billion in aid, Cruz noted, comes “at the exact same time” that they are “blocking desperately need relief to small businesses in America.”

The article continues:

In late March, a group of Democratic lawmakers — among them Reps. Alexandria Ocasio-Cortez (NY), Ilhan Omar (MN), and Rashida Tlaib (MI), and Sens. Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) — sent a letter to Secretary of State Mike Pompeo and Treasury Sec. Steve Mnuchin calling for the easing of U.S. sanctions on Iran during the coronavirus pandemic, a request that was dead on arrival. Iran has since requested $5 billion in aid from the International Monetary Fund (IMF). In response to the Trump administration indicating that they have no intention of allowing the terror-sponsoring state to get the massive infusion of money, Sen. Feinstein sent her own letter on Thursday expressing her disappointment.

The timing of the letter was unfortunate for Senator Feinstein:

Feinstein’s letter was issued the same day that Senate Democrats blocked an urgent request from Sec. Mnuchin to increase the amount of cash in the emergency small business loan program recently established by Congress from $350 billion to $600 billion.

In response to the pair of moves, Cruz called out Feinstein and the Democrats for what he suggested were some backward “priorities.”

When Secretary Mnuchin asked for more money to help small business, the  Democrats in Congress acted the same way they have in the past:

As the New York Post’s editorial board explains, instead of agreeing to the desperately needed increase in cash on Thursday, the Democrats “issued partisan demands”: “They insisted the new money include $60 billion for ‘community-based lenders’ that serve minorities, women, nonprofits and other groups. And the bill also had to OK an immediate $250 billion for cities, states, hospitals, food stamps and other needs.”

House Speaker Nancy Pelosi (D-CA) explained in response that “everything is an opportunity.” This was an “opportunity” to address “disparities” she suggested are plaguing the country.

“And if they don’t get their way, no one gets a dime more,” the Post’s editorial board noted. “Never mind that businesses face bankruptcy or that 17 million people filed for jobless benefits in recent weeks.”

We don’t need term limits–we need intelligent voters who remember these antics when they vote in November.

How The Media Game Is Played

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Townhall posted an article today which illustrates how some media outlets skew their reporting in order to advance a political agenda.

The article notes a change in a CNN headline about the Democrats’ blocking of a bill to add more funding for paycheck protection for small businesses.

The article includes the following tweet:

The article notes:

Democrats in the Senate blocked Majority Leader Mitch McConnell’s effort to legislate more funding to the Small Business Administration’s Paycheck Protection Program, which gives small businesses the opportunity to take out forgivable loans during COVID-19. 

Sen. Ben Cardin (D-MD) ultimately torpedoed Leader McConnell’s effort by objecting to a vote by unanimous consent, calling the effort to deliver more relief to America’s small businesses a “political stunt.” A bipartisan program, PPP alleviates the economic hardship facing small businesses while the economy is virtually shut down. 

The article concludes:

This misrepresentation is not only inaccurate, but also dangerous for Americans seeking information. The American people deserve to know which lawmakers put aside ideology in order to alleviate economic distress, and which party chose partisanship over relief for small businesses during a global health pandemic. Despite CNN’s virtue signaling in defense of Democrats, the delay of additional funding for the Paycheck Protection Program is at the hands of Senate Democrats, and Americans will suffer because of their delay.

I have very mixed emotions about the amount of money we are spending. The only silver lining here is that at least the money is aimed at businesses who need it–not destined to be lost in corporate kickbacks to Congress or subsides to companies that are not able to stand on their own such as Solyndra.