Tag Archive for 'state of the union'

The small business response to President Obama’s State of the Union Speech

In President Obama’s 2010 State of the Union speech he identified a number of issues that he apparently believed would appeal to Main Street small business owners. Alas, for the most part, his list merely revealed how out of touch he is with the challenges America’s small firms are facing today. Here are two of those points followed by my explanation of why the president needs better advisors when it comes to talking with small business owners.

$30 billion for community banks to loan to small business: On its face, this sound great, but as I have reported for almost two years, community banks don’t have a cash-for-loans problem; they have plenty of cash already and don’t want money - or the associated hassle - from the government. Nor do independent banks need more incentive to make small business loans. The overarching small business credit problem is not supply, but rather, demand. The condition of the economy is resulting in very little loan demand by small businesses. Wise up, Mr. President.

Eliminate capital gains for small business: It wouldn’t take a long conversation with any small business owner to discover that capital gains tax is their absolute least challenge as it virtually NEVER comes into play in the operation of their business, and any jobs creation as a result would be impossible to measure. In the list of the top 20 things that wake a small business owner up at night, capital gains tax wouldn’t appear. Mr. President, this is embarrassing.

Recently, on my radio program, The Small Business Advocate Show, I talked in greater detail about these and other issues in my small business response to President Obama’s state of the union speech. Take a few minutes to listen and let me know your thoughts on Obama’s plan for helping small businesses. Listen Live! Download, Too!

What I liked about Obama’s State of the Union Speech

During President Obama’s 2010 State of the Union speech he identified a number of issues that I give him high marks for. Here is my list:

Tax incentives for new hires:  The president proposed tax credits for new hiring by businesses. This is a great idea, but it’s about a year late so he needs to get this passed right away.

Free trade:  He included the need for more free trade agreements, including the one with Columbia that has been stuck in Congress for years.  He’ll have to fight forces in his own party to get this done.

Energy:  I give President Obama a high-five for proposing more nuclear power in America’s future, plus more drilling for our sovereign oil and gas deposits.  Again, he’ll have to deal with his own folks to make this happen.

Iran:  Mr Obama fired a shot across the bow of Iran; I have already predicted he would get a chance to make good on this stance in 2010.  If I’m right, we won’t have to wait long to see if Obama has the stones to back-up his rhetoric with action.

Recently, on my radio program, The Small Business Advocate Show, I talked about all of these issues.  Take a few minutes to listen and let me know what you thought about this speech. Listen Live! Download, Too!




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