Following is a recent letter sent to President Obama.
It was written in the context of the so-called Jobs Creation Summit held in Washington, DC on Thursday, 3 December 2009.
for taking the time to read this letter.
I am and
have been a small business owner in
In the first place, how do you think we business owners can afford to hire more people? We need profits for the purpose of expanding our businesses which will then enable us to hire more people. If there are no profits, no business is able to operate let alone hire additional staff.
profits, our personal incomes contract and we pay less in taxes. Almost all small businesses rely on profit to
live. Our profit is our reward for
providing products and services and information to people who want it. Profits
belong to us who have poured our personal time and effort – oftentimes at the
expense of our own families – because we love and believe in what we do. Furthermore,
we pull back on our personal discretionary spending: dining out (date nights),
travel, dry-cleaning, and “stuff buying.”
When there are profits, we can do the following: purchase and produce more advertising and marketing; upgrade and improve our facilities - this entails hiring other businesses or subcontractors to perform work such as electrical, plumbing, roofing, etc. We can purchase more or different varieties of products for our clients and customers. The more products sold, the more people are hired by our vendors and shippers.
As our profits grow, we can pay our staffs either a higher wage or provide them with well deserved bonuses (which are then taxed). As my staff earns more, they are then able to go and purchase and consume more products and services from other businesses. Those businesses in turn grow and expand and eventually hire more staff.
Since 2006, the year the Democratic Party took control of the legislative branch of the federal government; our industry (the swimming pool & spa industry) has been greatly impacted by the tax and spend policies set forth during that time. As talk of “taxing the rich” grows, more and more wealthy or so-called wealthy people pull back on their spending. They build or install fewer swimming pools or hot tubs. They spend less on toys, games, chemicals, services and after-market products. Like it or not, there is a “trickle down” effect. Fewer pool and spa sales and construction, fewer people hired (actually more let go or fired due to lack of work).
Whenever the government – at any level – takes excess taxes from anyone, even the so-called wealthy (whom you and many in your party say can “afford” these taxes), the direct effect is that those dollars are removed from the local economy: Fewer trips to the convenience store; Less eating out; Fewer limousine rides to the airport. A neighbor living down the street from our home is a limo driver and he has seen business drop by a huge percentage – rather than having four or five airport runs per day, there may be two or three. Why? Because the “wealthy” have reduced their spending.
why you didn’t bother to invite true small business owners like myself or representatives
from the National Federation of Independent Businesses or the US Chamber of
Commerce. We would have told you the truth of what makes
business owner – read that as one who creates jobs and teaches young people
just starting in the workforce how to work – I would have suggested the
following items that you could do right now that would make an immediate
positive impact on our nation:
- Temporarily drop the Health
Care debate. The tax increases and
fees that are being proposed are stifling. The taxes my small company
would be forced to pay would partially pay the salary of a part-time
seasonal employee (a true new created job). In the United States, we have
the best quality and technically advanced equipment, new drugs, and
facilities because of a profitable health care industry (who also then
donates millions of dollars worth of product and services around the world
– I personally know several doctors, nurses & technicians that give up
vacation time to go to various parts of the world and treat patients at no
charge; but at their own personal expense – they needed to be profitable
to do that). There are those who don’t want health insurance. Just ask any
18 – 25 year old single person what they would rather spend their
hard-earned money on: a new car payment or mandated health insurance. They will take the car any day.
Re-examine healthcare purposefully; piece by piece: tort reform; the
ability to purchase health insurance across various states; weed out and
vigilantly prosecute fraud; include Republicans in the process, don’t shut
them out as they have been by Senator Reid and Speaker Pelosi.
- Drop “Cap and Trade.” Now that
the so-called climate change discussion has been shown to be fraudulent,
drop it. It is arrogant to even believe that man can that dramatically
affect this wonderful creation in so short a time; God can but man can’t.
The sun as it goes through its cycles can influence our weather as well as
the rest of the solar system’s. Man
can’t make those changes. The taxes that would be hoisted upon every
American are completely un-necessary.
We can’t afford them.
- Due to the current economic
difficulties, all un-necessary federal government spending should be
immediately suspended and all Administrative and Legislative salaries
slashed by a minimum of 15% across the board. As business owners, we
demonstrate true leadership to our staff by cutting our personal salaries
first before we ask our employees to take a pay cut or dismiss an employee
or not hire a new employee. Oftentimes,
we business owners choose to forego personal salaries for weeks and months
to keep key employees working. It’s
for the good of the business. You, Mr. President, have the power to put
forth an executive order to do just that.
- Make the Bush tax cuts permanent.
Strongly urge Congress to make the Bush tax cuts permanent rather than
allowing them to expire in 2010 – that would result in a net tax increase
across all tax payers, not just the wealthy. Unless you do that, taxes will
dramatically rise and disposable income will fall further, driving up the
results within a month’s time. Why so short a time? People would regain hope and confidence in a system that they know and understand – the American capitalist system. Government is not the solution. Government should be a referee, if anything, with easy to follow, uncomplicated rules. Our Constitution is a wonderful document because it simply and succinctly says what it means and means what it says – unlike the 2000 plus page Health care bill currently being debated. Government should not be a competing player in the marketplace. It’s true we may find capitalism “unfair” sometimes but Mr. President, nothing in life is truly fair. Those with vision and ambition will flourish – and should be rewarded rather than fined (taxed). They are the true leaders.
Mr. President, my family and I pray regularly that God grants you His wisdom to do what is right; not what is expedient or politically correct. Those are difficult things to do. You still have the opportunity to do great things that will impact our Nation and our future for the better.
Ronald C. Parrs
Pres Obama photo courtesy of AP