Doers and Debtors

Obama needs to get out the message:  first an increase in taxes on those making over $250,000 will reduce the federal deficit; second, that his economic policies over the last four years have been solidly pro small business

I.  Deficit Spending

President Obama allowed the Bush tax rates to continue--that was a mistake.  Obviously he has learned from this.  If President Obama is re-elected and his plan to increase taxes on those who earn over $250,000 at the 38% Clinton rate is passed (up from the current 35%), there is reason to expect a decrease in the federal deficit.

When did America become so overwhelmed in debt, a deficit that causes the Tea Party and their ilk such angst?  Ronald Reagan, the Republican saint.  Reagan was the first president to take the budget deficit over $100 billion in 1982.  In 1983, in only one year, he doubled the deficit to  over $200 billion.  

What caused this overwhelming debit?  Supply-side, trickle down, Reaganomics.  The brainchild of Milton Friedman.  The same economic policy that Romney is still selling the American public today.

Did the United States ever have a budget surplus?  Yes, during the Clinton Administration.  By the time he left office, America had a nearly $200 million surplus.  During Clinton’s Presidency, 22 million new jobs were created.

How did Clinton do this?  During Clinton’s first year he pushed through a large tax increase which fell almost exclusively on upper-income taxpayers, contributing to budget surpluses in future years.

What happened when W. took over? Within one year, W turned $128 billion surplus into a budget deficit of $157 billion.  In his eight years, W created only one million new jobs.  

What caused such a turn around?  W returned to the trickle down nonsense and cut taxes for the rich policies.  Obama should be clear.  He should express regret that he allowed the W tax cuts to continue for the richest Americans.  He should promise to return to the tax rates adopted by the Clinton Administration for those Americans making over $250,000 per year.  He should give the historical perspective-- the only surpluses in the last thirty years have come through a tax increase on wealthiest Americans, one that is hardly onerous, given the fact that when Reagan, the Great Debtor, lowered the tax rate for the rich it was still at 50 percent.

II.  Small Businesses 

President Obama, contrary to what even many Democrats believe, has been overwhelmingly supportive of the American small-businessman. 
Romney, as Republicans before him, has been allowed to continue to employ the Republican myth that only they are in the small businessman's corner and that all Democrats want to restrict small businesses into paralysis.

Won’t the higher tax rates on those making over $250,000, as proposed by President Obama if re-elected, hurt small business owners?

The truth is that only 3 to 4 percent of small business owners report income in excess of $250,000. That means that as many as 97 percent of small business owners will still be taxed at the current lower rate.

Have the Obama economic policies been conducive to or prohibitive of small business start-ups?

Of the 4.5 million private sector jobs created since Obama took office, about 2.6 million (roughly 60 percent)  were created by small businesses.

Is that a reasonable amount? 
George Bush the elder created just 1.8 million small business jobs during his full four years in office.  If we add the number created under two terms of W., we will find that Obama has created as many small business jobs in one administration as his two Republican predecessors accomplished in three terms.

What has Obama done to make it easier to start and run small businesses?
President Obama has cut taxes on small businesses-- 18 different tax cuts, many via the 2009 American Recovery Act (the Stimulus Bill), others via the Small Business Jobs Act of 2010.

Under the Obama Administration have loans been readily available for those who would start small businesses?
President Obama has helped to make billions available for small business loans.  Obama established the Small Business Lending Fund (SBLF) which made it easier for community-based banks to provide start-up loans.  In 2010, he set up $30 billion under the Small Business Administration (SBA) to help underwrite commercial lending to small businesses.

Hasn't Obama made it harder to run a small business by increasing the number and purview of federal regulations?
President Obama has eased regulation for small businesses.  Through his Jumpstart Our Business Start-Ups (JOBS) bill, Obama has relaxed federal security regulations to make it easier for small start-ups to access investment capital.

In conclusion, do not believe that Republicans are the fiscally responsible party who are the small businessman's best friend.  Facts speak otherwise.  The President should be refuting these myths with solid facts and beginning to tell a different story so that small business and deficit reduction are as much associated with the Democratic Party as Social Security, Health Standards, Labor Standards, Environmental Standards, and Civil Rights Reform.