Democrats are aware that small businesses are the engines that drive the economy of this great nation. From high-tech startups to family-owned restaurants, small business owners and entrepreneurs are crucial elements of our economy and our communities. Like Republicans, Democrats see the value of small businesses, but they take a different route towards trying to support these businesses and their owners.
Traditionally, two-thirds of all new American jobs are created by small businesses. They exemplify a huge boon to our economy. This is the reason that Democrats strive to eliminate barriers standing the way of small businesses — by assisting more small businesses to get off the ground, grow, and hire new workers.
Small Business and Government Regulations
Democratic views on small business revolve around the theory that, while government cannot guarantee the success of a small business, it can implement the conditions that support hiring of new workers through providing tax relief and increasing the availability of Small Business Administration (SBA) resources.
During the Obama administration, President Obama cut taxes for small businesses no less than eighteen times. Also at President Obama’s direction, the Small Business Administration (SBA) administered more than 70,000 loans for businesses, offering those businesses with the much needed capital to invest and grow.
The American Recovery and Reinvestment Act that was signed into law by President Obama states that business that hire previously unemployed workers are eligible for tax cuts and can write off the purchase of new equipment. Most of the small businesses are eligible under the Affordable Care Act (ACA) for tax credits to offset the insurance costs for their employees. Democrats are fighting to defend the progress made and ensure that the new president Donald Trump cannot disrespect the American small businesses.
Many small businesses, on the other hand, see these tax cuts as small reparations for the added cost that governmental regulation and the ACA has cost them. Many tax regulations that were put in place to limit big business had unintended consequences for small businesses as well. Therefore, for all the work the Obama administration put in to help small businesses, many owners will tell you that they were not pleased with the outcome of these policies.
Hillary Clinton on Small Business
Clinton has remained steadfast with issues on labor, advocating for greater protections for immigrants, minorities, women, and gig workers in the economy. She supports both the Paycheck Fairness Act and the Affordable Care Act. Clinton has been very vocal in support of greater access to financing for businesses owned by minorities and women, a plan to create tax breaks for small businesses that incorporate a profit-sharing plan, and enhance less red tape for business owners across the board. However, Clinton’s plans also include a variety of regulations that are meant to limit big business that could have the same trickle down impact for small businesses that the Obama administration experienced.
Bernie Sanders on Small Business
Bernie Sanders has for a long time positioned himself as an advocate for small business owners. He facilitated the passing of the Small Business Jobs Act. The Small Business Jobs Act supports tax relief packages and low-interest loans to small business owners. Sanders calls for provision of low interest rates to small business owners in his Six Point Plan to Rein in Wall Street. These rates would be in-line with the interest rates offered to foreign banks so as to increase venture in smaller businesses.
However, he also advocates for the raise of the minimum wage to $15/hr – this would increase payroll-related costs for small businesses. This can make it harder for businesses to hire new workers, or to give their best workers raises based on performance.
ObamaCare’s Impact on Small Business
Opponents of the Affordable Care Act argue that the ACA has forced small business owners to pay a lot of money they don’t have, that the rising cost of medical insurance and the associated fees has forced companies to lay off workers or to halt expansion plans, and that the tax incentives offered to small businesses isn’t guaranteed and it’s too complicated.
Proponents of the ACA argue that the tax incentives are a great help, and assist them in the added costs of the health insurance premiums. They state that the majority of the expense falls with big businesses, not small businesses. They also argue that many small businesses will fall into the category of under 50 employees, and therefore will not be impacted by the act anyways, aside from the supposed lowering of healthcare costs that it offers.
Governmental Regulations Under Obama
More and more new rules and regulations built new costs for small businesses under President Obama. Almost every small-business person and entrepreneur laments new federal rules they are required to deal with, understand and also pay lawyers to assist them in navigating. The Obama administration is credited for the highest total numbers of pages of rules and regulations published in the Federal Register in a given year. During the Obama’s presidency, an average of 78,785 pages has been added annually, up more than 2,000 a year from the 76,783 pages issued annually by his predecessor.
Although all these new regulations have a purpose and rules are for our own good, they are killing smaller businesses, like, independent health care providers, community banks, service providers and manufacturers. More of these rules mean an added competitive advantage to the bigger companies, since they can afford the lawyers needed to stay compliant with federal law.
Democrats say they like creating jobs and supporting small businesses, but some of their actions at the federal level are hurting employers, especially startups and smaller businesses.
- Obama’s Rules Have Drained Small Business – Fox News
- Small Business Community – Democrats.org
- Democratic Party on Corporations – OnTheIssues
- What Will Obamacare Do To Small Businesses?
- Republican Views on Small Business
- Fix the Economy: A Cause Republicans Can Stand Together On
- Minimum Wage Increases: Good For Employees, But Detrimental To Employers
- Democratic Views on Big Business
- Republican Views on the Minimum Wage
- Democratic Views on The Economy
- Democratic Views on Jobs
- Democratic View on Health Care
- Democratic Views on the Federal Budget