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Paying Lip Service To Small Businesses

- August 23, 2016

While Clinton Tries To Make Herself Appear "Friendlier" To Small Businesses, She Can't Hide From Her Real Record


TOP TAKEAWAYS

  • While Clinton's campaign is rolling out a plan in an effort to make her appear "friendlier" to small businesses, Clinton is too busy fundraising with wealthy donors in California to roll it out herself.
  • The fact is Clinton is out of touch with small businesses, their workers, and their owners, being "surprised" to hear last year that small business growth has stagnated.
  • Clinton's time in the Senate shows her real record, where she repeatedly voted for higher taxes on small businesses and their owners.
  • The last time she ran for president, Clinton barely paid lip service to small businesses, with scant mention of small businesses and entrepreneurs in her campaign statements and press releases.
  • Small businesses have already suffered enough under the last eight years, with business creation still below its pre-recession levels, $743 billion in new federal regulations, and higher taxes and premiums under Obamacare.

Today, Kaine Will Speak At A Small Business Roundtable In Colorado. " Hillary Clinton's running mate is hosting a roundtable with small business owners in suburban Denver on Tuesday. Virginia Sen. Tim Kaine plans to talk about Clinton's economic plans at Primus Aerospace in Lakewood starting at 9:30 a.m." ("Tim Kaine Hosting Small Business Roundtable In Lakewood," The Associated Press, 8/23/16)

Kaine Will Be Appearing As Part Of An Effort To Make Clinton Appear "Friendlier" To Small Businesses, With Her Campaign Releasing A Small Business Tax Plan. "Hillary Clinton's campaign plans to push a package of tax breaks and other initiatives Tuesday aimed at making it easier for small businesses to get started and continue operating -part of a bid to cast the Democrat as friendlier to their interests than Republican Donald Trump." (John Wagner, "Clinton, Kaine To Make Pitch To Small Businesses With Tax Breaks, Other Measures," The Washington Post , 8/23/16)

But Clinton Is Too Busy Fundraising In California To Roll Out The Small Business Plan Herself. "Virginia Senator Tim Kaine, Clinton's vice presidential running mate, will unveil the proposals at a roundtable in Lakewood, Colo., and Clinton will speak to small business owners via conference call while fundraising in California." (John Wagner, "Clinton, Kaine To Make Pitch To Small Businesses With Tax Breaks, Other Measures," The Washington Post , 8/23/16)

  • Instead, Clinton Will Attend "A $33,400 Per Person Luncheon Fundraiser" With Wealthy Donors And Celebrities In California. "The former secretary of state is scheduled to hold a $33,400 per person luncheon fundraiser on Tuesday, with hosts including actor Tobey Maguire, actress Jennifer Aniston and television producer Shonda Rhimes." ("Hillary Clinton To Attend Fundraisers In Southland," CBS Los Angeles, 8/22/16)

Maybe If Clinton Would Stop Fundraising Long Enough To Talk To Business Owners She Wouldn't Be "Surprised" To Learn They Are Struggling

As Clinton Began Her 2016 Campaign, She Admitted To Being "Surprised" To Learn That Small Business Growth Had "Stalled Out." CLINTON: "My perspective. I want to be sure that we get small businesses started and growing in America again. We have stalled out. I was very surprised to see that when I began to dig into it. As people were telling me this as I traveled around the country the last two years, but I didn't know what they were saying and it turns out that we are not producing as many small businesses as we use to. And a recent world study said that we are forty-sixth in the world in the difficulty to start a small business. There are lots of issues and we will get into those I hope Dave and the rest of you as well." (Hillary Clinton, Remarks At A Roundtable, Keene, NH, 4/20/15)

Click To Watch

SMALL BUSINESSES HAVE SUFFERED ENOUGH UNDER OBAMA, BUT CLINTON BELIEVES HE DOESN'T GET ENOUGH CREDIT

Clinton Says That Obama Does Not Get The Credit He Deserves For His Economic Policies, Saying "Our Economy Is So Much Stronger Than When" He Took Office. CLINTON: "But, even more important than the history we make tonight, is the history we will write together in the years ahead. Let's begin with what we're going to do to help working people in our country get ahead and stay ahead. Now, I don't think President Obama and Vice President Biden get the credit they deserve for saving us from the worst economic crisis of our lifetimes. Our economy is so much stronger than when they took office." (Hillary Clinton, Remarks At The Democrat National Convention , Philadelphia, PA, 7/28/16)

Click To Watch

Business Creation Is Still Below It's Pre-Great Recession Levels

Business Formation Has Still Not Returned To Its Pre-Recession Peak, With The Level Of New Businesses Created Annually Stagnating Around 400,000. "To provide some context, consider that, by one measure (the Business Dynamics St.atistics database compiled at the U.S. Census Bureau), new formation of business firms finally rebounded slightly in 2011, after four years of decline from its peak of more than 560,000 new businesses created in 2006 to a low point of fewer than 390,000 new firms started in 2010.New business formation continued to inch upward for several more years (401,000 in 2011, 411,000 in 2012), before dropping slightly in 2013 to 406,000." (Tom Miller, "Entrepreneurship & Economic Dynamism: Marginal Return From Health Policy Thus Far," Ewing Marion Kauffman Foundation, 2016)

Small Businesses Are Facing $743 Billion Worth Of New Regulations Under Obama

According To A Recent Analysis By The American Action Forum, The Obama Administration Has Issued 600 Major Regulations At A Cost of "At Least $743 Billion." "What is the economic burden from these 600 major regulations? According to American Action Forum (AAF) research, based on data provided by agencies, it's at least $743 billion (including deregulatory measures) and 194 million paperwork burden hours (President Bush issued roughly $2 billion in major rules in 2009). To put those figures in perspective, $743 billion is larger than the Gross Domestic Product (GDP) of Norway and Israel combined." (Sam Batkins, "600 Major Regulations," American Action Forum, 8/6/16)

ObamaCare Raised Taxes On Small Businesses And Has Led To Higher Premiums For Small Business Owners

ObamaCare's Small Business Exchanges Have Failed To Provide Affordable Health Care To Small Businesses And Their Employees. "Obamacare's Small Business Health Options Program, or 'SHOP' exchanges, also failed to provide a broader range of affordable and attractive choices of insurance for small businesses. The Congressional Budget Office originally projected that 2 million employees would enroll in such coverage starting in 2014, with the number eventually leveling off at 4 million in 2017. Although actual enrollment data has been hard to find, the best estimates are by GAO - about 76,000 individuals in state-based SHOPs as of June 2014 - and by the Centers for Medicare and Medicaid Services - approximately 85,000 Americans covered through all SHOP marketplaces as of May 2015." (Tom Miller, "Obamacare's Small Business Bust," U.S. News & World Report , 3/3/16)

A November 2015 National Federation Of Independent Businesses Survey Found That 63 Percent Of Small Businesses Providing Health Insurance Had Seen Premiums Increase In The Prior Year. "The survey found that Obamacare hasn't provided any relief for most small businesses in terms of health insurance premium costs. In fact, '63 percent of offering small employers experienced an increase in their employee premium cost between mid-2014 and mid-2015.'" (Press Release, "NFIB Survey Finds Health Insurance Costs On The Rise For Small Businesses," NFIB, 11/13/15)

ObamaCare's Employer Mandate Fines Small Businesses With More Than 30 Employees $2,000 Or $3,000 Per Worker That They Cannot Provide Coverage For. "The employer mandate went into effect in 2015, forcing employers with 100 or more full-time employees to provide health insurance to most of their workers, and expanding to those with more than 50 employees beginning this year. Those that cannot afford the costs-which average $12,591 per employee for family coverage-face a tax penalty of either $2,000 or $3,000 per employee after the first 30 employees. So as an example, an employer with 100 full-time employees who can't afford rising health-care costs could face over $100,000 in tax penalties." (Nathan Nascimento, "How Obamacare Just Made Filing Your Taxes Worse," Time, 4/5/16)

ObamaCare Created A New 0.9 Percent Medicare Surtax On Some Individuals, And Those Who Are Self-Employed Such As Small Business Owners May Now Be Paying Up To 3.8 Percent Tax On Income. "A 0.9% surtax on Medicare taxes for those making $200,000 or more ($250,000 joint). You already pay Medicare tax of 1.45%, and your employer pays another 1.45% for you (unless you're self-employed, in which case you pay the whole 2.9% yourself). Next year, your Medicare bill will be 2.35%." (Henry Blodget, "Here Are The New Taxes You're Going To Pay To Pay For Obamacare...," Business Insider, 7/2/12)

  • A Number Of Small Businesses In The United States Pay Their Taxes At The Individual Level Because Of Their Structure As "Pass-Through Businesses." "The United States currently has a large number of pass-through businesses, or businesses that pay their taxes through the individual income tax code rather than through the corporate code. These sole proprietorships, S corporations, and partnerships make up the vast majority of businesses and more than 60 percent of net business income in America. In addition, pass-through businesses account for more than half of the private sector workforce and 37 percent of total private sector payroll. Pass-through businesses are represented in all industries in the United States." (Kyle Pomerlau, "An Overview Of Pass-Through Businesses In The United States, Tax Foundation, 1/21/15)

ObamaCare Created A 3.8 Percent Medicare Surtax On Investment Income, Which Small Businesses Owners Can Be Subject To. "Before Obamacare, investment income was not subject to any sort of Medicare tax. After Obamacare, all or part of your net investment income, including long-term capital gains and dividends, can get socked with a 3.8% Medicare surtax (the so-called net investment income tax). Therefore, the maximum federal rate on long-term gains and qualified dividends is actually 23.8% (20% for the 'regular capital gains tax plus 3.8% for the net investment income tax) versus the advertised 20% maximum rate." (Bill Bischoff, "Obamacare Tax Increases Are Now Locked In At Least Through 2016," Marketwatch, 6/25/16)

THE LAST TIME SHE RAN FOR PRESIDENT, CLINTON BARELY PAID LIP SERVICE TO SMALL BUSINESSES

During Her 2008 Campaign, Only Two Of Clinton's Press Releases And Statements Contained "Small Business" Or "Entrepreneur" In The Title

Hillary Clinton's 2008 Presidential Campaign Website Did Not Have A Section On Small Business. (Hillary Clinton For President, Accessed 5/15/15)

Through June 2008, Clinton's Presidential Campaign Did Not Release A Plan Directly Aimed At Helping Small Business. (Hillary Clinton For President, Accessed 5/15/15)

According To The UCSB Presidency Project, Clinton Only Released One Statement With "Small Business" In The Title. (The American Presidency Project, University Of California - Santa Barbara, Accessed 5/15/15)

  • A Statement From January 10, 2008, Was Titled: "Hillary Clinton Statement On Small Business Administration Proposal Affecting Women-Owned Small Businesses" (Hillary Clinton For President, "Hillary Clinton Statement On Small Business Administration Proposal Affecting Women-Owned Small Businesses," 2008 Campaign Statement, Accessed 5/18/15)
  • According To The UCSB Presidency Project, The Clinton Campaign Sent Out A Total Of 235 Statements During The 2008 Democratic Primary. (The American Presidency Project, University Of California - Santa Barbara , Accessed 5/18/15)

According To The UCSB Presidency Project, Clinton Only Released One Press Release With "Small Business" In The Title. (The American Presidency Project, University Of California - Santa Barbara, Accessed 5/15/15)

  • A Press Release From October 10, 2007, Was Titled: "SC Hillary Campaign And Charleston Small Business Owners Unveil State Impact Report For Hillary's Retirement Savings Plan" (Hillary Clinton For President, "SC Hillary Campaign And Charleston Small Business Owners Unveil State Impact Report For Hillary's Retirement Savings Plan," Press Release, Accessed 5/18/15)
  • According To The UCSB Presidency Project, The Clinton Campaign Sent Out 1,259 Press Releases During The 2008 Democratic Primary. (The American Presidency Project, University Of California - Santa Barbara , Accessed 5/18/15)

IN THE SENATE, CLINTON REPEATEDLY VOTED FOR HIGHER TAXES ON SMALL BUSINESSES

Clinton Voted Against Lowering Taxes On Small Businesses

Clinton Voted Against The 2001 And 2003 Tax Cuts, Which Cut All Income Tax Rates, Including Those Encompassing Small Businesses. (H.R. 1836, CQ Vote #165: Passed 62-38: R 50-0; D 12-38, 5/23/01, Clinton Voted Nay; H.R. 1836, CQ Vote #170: Adopted 58-33: R 46-2; D 12-31, 5/26/01, Clinton Voted Nay; H.R. 2, CQ Vote #179: Passed 51-49: R 48-3; D 3-45; I 0-1, 5/15/03, Clinton Voted Nay; H.R. 2, CQ Vote #196: Adopted 51-50: R 48-3; D 2-46; I 0-1, With Vice President Cheney Casting A "Yea" Vote, 5/23/03, Clinton Voted Nay)

  • Many Small Business Owners Pay Their Taxes Through Individual Filings. "In a closed-door meeting with lobbyists on Jan. 13, Treasury Secretary Jack Lew fielded questions on whether it would be fair to cut the corporate rate without lowering rates for businesses that pay tax through their owners' individual filings. Lew's answer was that some such firms, which are known as 'pass throughs,' would probably be better off becoming corporations, according to three people who were in the room and asked not to be named. 'There was no interest in talking about rates for pass throughs,' said Dan Danner, the head of the National Federation of Independent Business, who was also at the table with Lew. Danner said the Federation, which lobbies for 350,000 small and independent businesses, plans a noisy fight to win lower rates for firms that do not register as corporations. Many small business owners choose to pay taxes through individual filings to take advantage of lower tax rates or to avoid the added regulatory scrutiny that corporations face." (Jason Lange, "In U.S. Tax Reform Talks, Small Firms Fear Missing Out On Relief," Reuters, 1/21/15)

Clinton Voted Against The 2003 Tax Cut That Increased Small Business Deductions On Investments To $100,000. "Adoption of the conference report on the bill that would provide $350 billion in tax breaks over 11 years. It would provide $20 billion in state aid that consists of $10 billion for Medicaid and $10 billion to be used at states' discretion. The agreement includes a new top tax rate of 15 percent on capital gains and dividends through 2007 (5 percent for lower-income taxpayers in 2007 and no tax in 2008). Income tax cuts enacted in 2001 and scheduled to take effect in 2006 would be accelerated. The child tax credit would increase to $1,000 through 2004. The standard deduction for married couples would be double that for a single filer through 2004. Tax breaks for businesses would include increasing the deduction that small businesses could take on investments to $100,000 through 2005." (H.R. 2, CQ Vote #196: Adopted 51-50: R 48-3; D 2-46; I 0-1, With Vice President Cheney Casting A "Yea" Vote, 5/23/03, Clinton Voted Nay)

  • The 2003 Tax Cuts Increased The Small Business Investment Deduction From $25,000 To $100,000. "Under current law, as signed by the president in 2003, there is an annual maximum dollar limit. The total cost of Section 179 property has been increased from $25,000 to $100,000. This maximum dollar limit is reduced if you go over the investment limit in any year." ("Small Business/Section 179 Expensing,," National Federation Of Independent Business Website, Accessed 9/28/14)

The Joint Economic Committee Found That Over 20 Million Small Businesses Would Benefit From An Income Tax Reduction. "Over 20 million small businesses that pay tax under the personal income tax system would also benefit from rate reductions. Recent research finds a strong link between marginal tax rates and small business hiring and investment behavior." ("Economic Benefits Of Personal Income Tax Rate Reductions," Joint Economic Committee Website, 4/01)

Clinton Repeatedly Voted Against Repealing The Death Tax, Which Can Harm Small Businesses And Family Farms

Clinton Voted Against Full Repeal Of The Death Tax At Least 20 Times. (H. Con. Res. 83, CQ Vote #86: Adopted 65-35: R 50-0; D 15-35, 4/6/01, Clinton Voted Nay; H. Con. Res. 83, CQ Vote #98: Adopted 53-47: R 48-2; D 5-45, 5/10/01, Clinton Voted Nay; H.R. 1836, CQ Vote #119: Rejected 35-64: R 0-49; D 35-15, 5/21/01, Clinton Voted Yea; H.R. 1836 CQ Vote #123: Motion Rejected 39-60: R 2-47; D 37-13, 5/21/01, Clinton Voted Yea; H.R. 1836, CQ Vote #124: Rejected 43-56: R 2-47; D 41-9, 5/21/01, Clinton Voted Yea; H.R. 1836, CQ Vote #132: Motion Rejected 41-58: R 1-48; D 40-10, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #134: Rejected 30-69: R 0-49; D 30-20, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #135: Rejected 48-51: R 6-43; D 42-8, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #143: Motion Rejected 43-55: R 2-47; D 41-8, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #144: Motion Rejected 41-58: R 0-49; D 41-9, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #145: Motion Rejected 41-57: R 0-48; D 41-9, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #158: Rejected 42-57: R 2-48; D 40-9, 5/22/01, Clinton Voted Yea; H.R. 1836, CQ Vote #165: Passed 62-38: R 50-0; D 12-38, 5/23/01, Clinton Voted Nay; H.R. 1836, CQ Vote #170: Adopted 58-33: R 46-2; D 12-31, 5/26/01, Clinton Voted Nay; S. 1731, CQ Vote #28: Adopted 56-42: R 45-2; D 11-39; I 0-1, 2/13/02, Clinton Voted Nay; H.R. 8, CQ Vote #151: Motion Rejected 54-44: R 45-2; D 9-41; I 0-1, 6/12/02, Clinton Voted Nay; S. Con. Res. 23, CQ Vote #62: Adopted 51-48: R 47-4; D 4-43; I 0-1, 3/20/03, Clinton Voted Nay; H.R. 8, CQ Vote #164: Motion Rejected 57-41: R 53-2; D 4-38; I 0-1, 6/8/06, Clinton Voted Nay; S.Amdt.507 21, CQ Vote #83: Rejected 47-51: R 47-2; D 0-47; I 0-2, 3/21/07, Clinton Voted Nay; S. Con. Res. 21, CQ Vote #109: Rejected 44-55: R 44-5; D 0-48; I 0-2, 3/23/07, Clinton Voted Nay)

Clinton Voted Against Death Tax Relief At Least 7 Times. (S.Amdt.4191, CQ Vote #50: Amendment Rejected 50-50: R 48-0; D 2-48; I0-2, 3/13/08, Clinton Voted Nay; S. Con. Res. 21, CQ Vote #159: Motion Agreed To 54-41: R 46-0; D 8-39; I 0-2, 5/9/07, Clinton Voted Nay; S. Con. Res. 21, CQ Vote #101: Rejected 25-74: R 4-45; D 21-27; I 0-2, 3/23/07, Clinton Voted Nay; S. Con. Res. 21, CQ Vote #102: Rejected 48-51: R 48-1; D 0-48; I 0-2, 3/23/07, Clinton Voted Nay; H.R. 8, CQ Vote #149: Motion Rejected 44-54: R 4-43; D 39-11; I 1-0, 6/12/02, Clinton Voted Nay; H.R. 1836, CQ Vote #114: Rejected 43-55: R 1-48; D 42-7, 5/17/01, Clinton Voted Yea; H.R. 1836, CQ Vote #122: Motion Rejected 39-60: R 1-48; D 38-12, 5/21/01, Clinton Voted Yea)

The Death Tax Can Pose "A Particular Hardship For A Small Business Or Family Farm," With Heirs Potentially Having To Sell The Business Or Farm To Pay The Tax. "But critics argue that the tax may pose a particular hardship for a small business or family farm. If building up such an enterprise [sic] results in a taxable estate without enough liquid assets to pay estate taxes, heirs may have to wholly or partially liquidate the business or farm. Purchasing sufficient life insurance might prevent that problem, but the ongoing cost of paying premiums would reduce the cash flow available to invest in the enterprise. In addition, critics charge, because the estate tax lowers the rewards from investment, a business owner or family farmer wishing to leave the enterprise to his or her heirs may be less inclined to invest in it or to hire workers-or may even be dissuaded from starting the business." ("Effects Of The Federal Estate Tax On Farms And Small Businesses," Congressional Budget Office, 7/05)


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