I’m not surprised to learn that small business owners favor John McCain by a 43-40 margin (with Bob Barr getting nine percent). I’m surprised it is that close. The Republican rhetoric is aimed squarely at criticizing ‘government regulation’, and has been for a very long time. Over the years, Democrats have been guilty of imposing ‘unfunded mandates’ and poorly thought out requirements that adversely impact small businesses. Imagine having to pay for a handicap-accessible ramp when you can’t remember that last time you had a customer in a wheelchair. It’s not the sentiment behind the regulation that causes frustration, it’s the cost. There are dozens of little examples like this that any small business owner can rattle off at will.
But that is small stuff compared to the corporate welfare that both parties dole out on a regular basis. How is a local hardware store supposed to compete with a new Home Depot that has a five-year tax abatement? Yes, many of the problems are created on a local level. The mayor of Pittsburgh, for example, wants to create jobs and so he offers the tax abatement to Home Depot. As a result, several local hardware stores are driven out of business. Is Pittsburgh better off? They have more jobs and can buy a cheaper shovel. It’s no wonder that small business owners disproportionately support the Libertarian Party. The Libertarian Party opposes corporate welfare.
When you look at Barack Obama’s policies you’ll see a mish-mash of stuff. Some, like universal health care, will help small businesses that provide health benefits. Others, like raising the highest marginal tax rates while cutting some corporate taxes, will increase the gap between very successful small businesses and corporations. What’s clear, though, is that the Republicans are much more successful in targeting small businesspeople and speaking to their issues.
My advice is to make use of the Senate Committee on Small Business and Entrepreneurship. The committee is chaired by John Kerry. To get an idea of what they do, tomorrow they will hold a hearing on “Opportunities and Challenges for Women Entrepreneurs on the 20th Anniversary of the Women’s Business Ownership Act.” They should take that show on the road. The membership of the committee is regionally diverse.
From the East: Chairman Kerry (D-MA) and Sen. Cardin (D-MD)
From the South: Sens. Pryor (D-AR) and Landrieu (D-LA).
From the Midwest: Sens. Bayh (D-IN), Levin (D-MI), Harkin (D-IA)
From the Northwest: Sens. Tester (D-MT) and Cantwell (D-WA)
My advice is to set up some Small Business roundtables in the battleground states. Have Joe Biden appear in Michigan or Indiana with Bayh, Levin, and Harkin. Have Obama appear in Mississippi and Georgia with Pryor and Landrieu. Have someone go to Montana and North Dakota with Tester and Cantwell. Kerry and Cardin can appear in the Philly suburbs and Northern Virginia. Talk to small business owners and make sure they understand the benefits in the Obama-Biden economic plan. Make sure they know that you are seeking feedback and that you want their vote.
Whatever benefits McCain’s plans might have for small businesses in the short-term are far-outstripped by the cost of money that will be imposed by his record borrowing and fiscal irresponsibility. Entrepreneurs need to know that.