Where do the presidential candidates stand on issues affecting small business?

In light of the current events in the financial markets, the presidential campaign seems to be playing a back seat to other more dramatic financial news. We have all heard and read that this presidential election is perhaps one of the most important elections in our lifetime. While that may be true, many small business owners have less time today to study the issues and understand where each candidate stands on the issues. ABMI has summarized some of the issues relevant to small business and provided a few links to quick resources to help you research the issues in more detail.

We are in fact at a critical time in our country. Some of the fundamentals that seemed to work for the economy for so long have faltered leaving large holes in what appeared to be a solid foundation. The professional team at ABMI is tracking the economy in great detail and studying the impact on various market segments. One basic truth is that the backbone of our economy has always been small business. It is imperative for small business to be empowered with the tax structure and incentives to allow them to rebuild in a very challenging marketplace. It is unfortunate that the backbone of our economy (the small business owner) often falls into an earnings category that appears to be a target for proposed tax increases as opposed to incentives. Please take time to study the issues and how they impact small business…and make the commitment to vote.

While there are a number of issues to consider in your decision, ABMI has selected two issues relevant to small business for a brief side-by-side comparison.

Taxes
Obama proposes to raise taxes on small business owners that make more than $200K per year. These business owners are an important segment in our economy employing a significant portion of the work force.

Subject	John McCain	Barack Obama
Individual Income Tax	Keep two tax rates at 33% and 35%	Increase top two tax rates to 36% and 39.6%
Corporate Tax	Reduce tax rate from 35% to 25%	Reduce tax rate for companies that start operations in the U.S. and repeal tax breaks for companies that retain earnings overseas.
Capital Gains	Maintain 15% tax rate	Increase rate to 20% for individuals making more than $200,000 and eliminate tax on investments in small business and startups.
Estate Tax	Collect 15% tax on estates worth more than $5 million	Collect 45% tax on estates worth more than $3.5 million.
Source: Kansas City Business Journal October 10, 2008

Health Care
John McCain and Barack Obama have very different views on the employer’s roles in health care. McCain’s plan proposes to provide a refundable tax credit to pay for health insurance premiums that they buy on their own. Obama’s plan would require businesses to provide health insurance for their employees or pay additional taxes. Small businesses would receive a tax credit to help offset the additional cost of the insurance.

John McCain	Barack Obama
Would provide refundable tax credit of $2,500 to individuals and $5,000 to families for health insurance premiums. Employer provided benefits would be treated as income.	Would create national health insurance exchange for individuals to buy coverage including a government-sponsored plan similar to the one offered to federal employees.
Would allow individuals to buy health insurance nationwide across state lines.	Would provide small business with a tax credit to offset cost of health insurance premiums.
Would work with states to establish a guaranteed access plan for individuals who have been denied insurance because of pre-existing conditions or other reasons.	Would require businesses to pay additional taxes if they don’t provide health insurance.
Source: Kansas City Business Journal October 10, 2008

ABMI is not taking a position to endorse either candidate. There are a number of resources available to help make sense of the various issues. To access some of these resources follow this link. http://abmi.net/Politics08.html
We urge you to reference some of these resources to study the issues and form your own conclusions. Once you have made a decision, take the time to vote.