Small Business Owners – Making Millions, of Jobs That Is…

Obama - Biden Entreprenever_edited-1President Obama, you coined the phrase “middle class economics” as one of your latest “camplaign” appeals.

I coined the phrase “Entreprenever” for you.

Mr. Obama, you have never been an entrepreneur.  You are successful beyond the imagination of most people’s dreams.  You are obviously a highly talented and intelligent person. You have a loving family.

You have a loyal and caring following… then here comes the but, at least not until, and unless, you are willing to walk in a small business owner’s shoes, you’re politics hurt small business owners.

I’m an entrepreneur.  I’m not a millionaire, but job growth is a constant in my business. There are a lot of small business entrepreneurs out there earning millions in taxable revenues for their small businesses, who aren’t millionaires.  They’re making jobs, not millions.  Why not millions of dollars? Too many regulations, too many taxes, too much big government getting in the way.

Small Business Owners make millions of jobs, not millions of dollars! That’s what I call “American Exceptionalism.”

Mr. President, if you truly want to help the middle class, help small businesses grow and hire more people.  They’re your middle class economy.  There are many up and coming millionaires that are making products, providing services and creating jobs.  They should be paying less taxes, NOT more, than they do today.

Small businesses want to invest their income in products, services and jobs, not squandered on meeting meaningless regulatory bureaucratic “make work.”  Call it unintended consequences, but I don’t think you really care, or you care more about bureaucratic jobs than you do about free enterprise jobs?  Free enterprise better defines “middle class economics” than big government any day!

Free enterprise defines middle class economics” better than big government any day!!

Small businesses that file their taxes as individuals need lower income tax rates, even at the top income brackets, so that we receive a fair return for the risk we take to grow our businesses.  In my case, growing a successful business from 1 to 40 FTEs required; cashing in all my savings, a second mortgage on the house, personal loans from friends and family, 12-14 hour days, no PTO or vacations for the first 10-12 years. The mortgage on my house was $100K when I bought the house.  Twenty-five years later after loans, it is still over $200K.  If I’m not successful, that will be my legacy to my children, not your children.

Before you insert your platitudes about every American giving their fair share, you’re too intelligent to believe our current entitlement society, including illegal immigrants choking our medical, educational and government resources, is fair to hard working legal US CITIZENS.

The failure rate for small businesses like my own is one success in five failures.  So where is your reward at the end of the tunnel?  Higher taxes.   You don’t care, but higher taxes on small business owners prevent further investment in their business,  reduces the chances of paying off outstanding loans and lost income due to lack of cash flow.

I didn’t have a 401K or savings account for over 10 years.  I don’t have a huge stock portfolio, a second home, fancy cars or take Alaskan cruises… well OK,  I did take an Alaskan cruise with my wife,  It was awesome!  Should I thank you Mr. President?  Higher taxes is how you, our President rewards hard work, ingenuity and innovation.  That’s why I coined the phrase for you, President Obama, Entreprenever.

Yes, I’ve seen the news stories about this small business and that small business, who obtained and SBA loan or some other government handout.  Good for them!  That’s great theater.  That’s great politics!  You’re the best!

I’m not going to get into the weeds on excessive regulation and the politics here.  There are plenty of people capable of doing so.  Of this I am certain.  You’ve never run a business, certainly not a small business, and certainly never had to put your life’s savings on the line for a small business.

Mr. Obama, you’re ticket’s already been punched.  You’ve already made millions.  You stand to make millions more.  Maybe you already have, so what’s my point?  My point is you can never say you are for the little guy, the small business owner, end of story.

For all the Rich and Famous liberals out there that make millions and billions, mind your own f$$$$n” business!! If you want to raise taxes on people, think about small business owners versus our government’s track record in making money.  You’re pretty good at it, why don’t you get it!!!

We’re $18 Trillion in debt.  You could let big government spend more money on the backs of hard-working small business people, as well as, their employees and their families.  You could push for lower taxes on small business owners or you could just put you money where your mouth is…

Send your contributions to:

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

Much obliged!

Sincerely,

The ideacapitalist

Small Business Owner

You Cannot Govern Leadership

individualism

While small business owners are putting up their houses and their life savings to survive, to cash flow their business, to hire employees, President Obama was and still is, greasing the palms of his political donors in the name of greentech failures, spending billions of our taxpayer dollars.

The alarming failure of big government was never more evident than when President Obama publicly and carelessly joked about a trillion dollars (stimulus (taxpayer) money) wasted on “Shovel-Ready Was Not As Shovel-Ready As We Expected.”  Where was the red flag then?  Where is the red flag now?

The only hope I see for this country is individual responsibility, and leadership that creates prosperity, not big government. You cannot govern leadership.   Today individual responsibility, leadership, and American exceptionalism are too often political talking points and empty words. When individual leadership fails, or fails to materialize, it creates dependency.

Leonardo da Vinci said it 480 years ago and he said it in Italian. Here is the clearest translation:  “People of accomplishment rarely sit back and let things happen to them. They go out and happen to things.”

I don’t do what you’re passionate about, but be passionate about what you do.  Don’t follow your passion.  Let your passion follow you.  That’s leadership.

As a small business owner after 25 years it has been my experience, the most important life decisions you make, have to be made on your own.  I built my business and leadership is key.

Others will pontificate as to what a leader is, what a leader must do and how a leader must act.  I don’t have time for all that and neither do you.  The best way to find out if you are a leader is to deal with life’s biggest challenges when it comes to crunch time.

Decide on your own and act accordingly.  You’ll no doubt get plenty of advice, but no one is going to know better than you, what to do.  You are better qualified than anyone or anything to make the decisions that affect you personally and those who depend on you.

There’s a disturbing trend in our day-to-day lives towards dependency on others, big institutions, big labor and big government.  Sweat equity has been replaced by entitlement equity.  People measure success based on what they can get, not what they can give.  

A major new study by Harvard economist Raj Chetty, however, shows things haven’t changed all that much. “Children entering the labor market today have the same chances of moving up in the income distribution relative to their parents as children born in the 1970s,” it finds.  “That doesn’t mean politicians can’t improve people’s chances of rising. It’s just that the best way they can do so is by getting out of the way.”  The Foundry

The problem is the more you lean on the government, the more your life depends on government.  You are governed by more  laws, more regulations and more public policy today than ever before.  Who you become, what you do, and how you do it, is shaped by public opinion and the mainstream media.

In this new era influenced by mass media and public opinion, big government is their divined solution to all your problems.  American exceptionalism, entrepreneurship and the multitude of small business success stories that built a thriving post WWII economy, are too often ignored, discounted and discouraged with crippling regulation and  laws that are the new normal.

What if a typical family spent like government?

What if a typical family spent like government?

Individualism and leadership are sorely needed.  People, not big government, can make a difference.  You and I need to step up to the plate.  Our country’s in peril as is our next generation.  Take on the career politicians who have created roadblocks to personal responsibility and leadership.  Our country is on the line. Vote them out in 2014 and 2016.

Career politicians passing laws that control our lives severely curtail the entrepreneurial spirit and small business startups, the little engine that could, that should and does grow the economy.   Consider the cost of healthcare has virtually doubled for small businesses in the past 5 years.  

Entrepreneurs are the lifeblood of free enterprise. Their heart is beating for their next customer, for their fellow employees and their families.  Their soul is intact.  They epitomize what comprises the backbone of our country, small business.  In their shadows are the real leaders, the chief cooks and bottle washers; the real risk takers that stand behind their champions, small business owners.  Small business owners are essential to the future success of the US economy.

Entrepreneurs are not the only leaders.  Leaders are people I see when I come to work before dawn.  I see them after dusk, when darkness settles.  They are resourceful.  They don’t think twice.  If you say something to them about the long hours they keep, they will readily commiserate with you, complain if you will, but there is a sense of pride in their voice.  There is a smile on their face.  These hard working people who are the heart and soul of the US economy.

In an atmosphere where people lean more on government, blame others and institutions for their circumstance, we need more leaders. Whether you are a parent, employee, small business owner or CEO of a multi-billion dollar corporation; people depend on you for guidance.  You are accountable for the success or failure of others.  You have to make decisions that affect other people for better or for worse. 

In business or in your personal life, when the time comes, no one will make the important decisions for you.  Don’t get me wrong.  You will get plenty of advice.  “If I were you…” “You should…”  “You could…” “You might…” Later on, after the decision has been made, you will summarily receive the same words, only in a different context.  “If it were me…” “I would have…”  I could have…”  “I would have… Draw on your own experience.  Make your own decisions.

The most important decisions you can make, are made by you alone.  That’s leadership.  You can change the world, change you can believe in.

Obamacare Tax on the So-called Affluent

obamataxI’m coming to you from a small business owner’s perspective.  Small business owners are looking for every manner to save money and still grow their businesses.  The last thing they need is to pay more taxes.

If you are a small business owner who has worked really hard to get to a point you are earning a decent salary, approaching retirement,  saving some money, investing it in financial instruments, that earn dividends and interest, it is disappointing to learn you are going to be paying more in income taxes.

Now you’re paying for Obamacare with taxes on income you have already earned on investments you have already made with hard earned dollars.

“Affluent investors who ignore this tax will be in for a total shock next April 15,” says David Lifson, a certified public accountant specializing in tax at Crowe Horwath in New York.  Not so affluent investors that pay individual income taxes on business income are going to feel the shock, too.

According to the Wall Street Journal such income is typically not subject to withholding, and people won’t be factoring it into their estimated taxes.  The tax, which took effect Jan. 1, applies to the “net investment income” of married joint filers who have more than $250,000 of income (or $200,000 for singles). Only investment income—such as dividends, interest and capital gains—above the thresholds is taxed. The rate is a flat 3.8% in addition to other taxes owed.

I know many of the so called  “affluent” are not inclined to be politically active, but read Laura Saunders: Are You Ready for the New Investment Tax?.  This should be a reason for you to pick up the phone and call your congressmen and senators to repeal this tax.  If this is pocket change for you, if so, maybe you should think about your kids?

I won’t argue the one benefit to Obamacare that makes sense, is forcing insurance companies to cover pre-existing conditions, regardless of the cost (to them).

Insurance companies need to start policing the costs they can control in their own backyard, for example, Big Pharma and not pile those costs on the backs of their customers.

I say that, because insurance companies have been skating on this issue for far too long.  If the insurance companies won’t step up to the plate, this could still could get done without ACA, a.k.a. Obamacare.  We don’t need Obamacare to care for people with pre-existing conditions.

To pay for healthcare coverage for people with pre-existing condition, you reduce costs.  To reduce costs you increase competition.  To increase competition, you deregulate and allow competition between insurers across state lines.

You also increase the incentive for the consumer (patient) to shop for the very best healthcare at the very best price.arrow thru the head

I pay for my employee’s health and dental benefits up to the monthly H.S.A premium. If they select a more expensive plan they pay the difference.  I have physicians who have discounted procedures 25% because they know I’m paying for their services out of my own pocket (at least until I reach the out of pocket maximum).

The emphasis at our company is to be healthy.  We have our own gym.  We have a cycling team we formed to fight MS.

If an individual is making decisions on their own behalf with regard to their health and their health care costs, the cost of healthcare will truly become more affordable.

The answer to rising prices and declining benefits is to increase competition in the health insurance market.  Encourage, not put limits on Health Savings Accounts H.S.A.’s as the new Affordable Care Act does.  You don’t decrease costs through big government and more regulation.

Here’s what the Democrats are saying about Obamacare.  Montana Sen. Max Baucus, a Democrat, called it a “train wreck.” A Democratic colleague, West Virginia’s Sen. Jay Rockefeller, described the massive Affordable Care Act as “beyond comprehension.”  Henry Chao, the government’s chief technical officer in charge of putting in place the insurance exchanges mandated by the law, was quoted in the Congressional Quarterly as saying, “I’m pretty nervous . . . Let’s just make sure it’s not a third-world experience.”

Obamacare is an unmitigated disaster.   To add insult to injury, we are now on the hook to pay for what will go down in history as the next great entitlement program, the Affordable Care Act!

Anytown Small Business Sequestration – A Letter from the CEO

EVAN VUCCI / AP President Barack Obama during the fiscal cliff negotiations in the briefing room of the White House on Friday, Dec. 28, 2012, in Washington.

EVAN VUCCI / AP  – President Barack Obama during the fiscal cliff negotiations in the briefing room of the White House on Friday, Dec. 28, 2012, in Washington.

ANNOUNCEMENT: Due to our inability to produce a product in the past 4 years and the conjoined, unbridled spending we have undertaken, it pains us to adopt the Government’s style Sequestration, a.k.a. mandatory spending cuts, here at Anytown Small Business, Inc. 

Following the President’s example, I am voluntarily taking a 5% salary cut.  If I was making as much as our President, that would be enough to replace the windows in Building 100, thereby erasing the threat of Mud daubers terrorizing our finest.

Let me explain.  The promise of lower healthcare costs didn’t happen.

The promise of cleaner, renewable, and cheaper energy costs and fewer regulations, where everything that was beautiful, has now brought us down, didn’t happen.

Our hiring practices, spurred on by the promise of a Government backed Stimulus plan to create jobs and economic growth, didn’t happen.

We have had to hire armies of attorneys and consultants to remain in compliance of the new regulations and laws.

Each year over the past four years our healthcare costs have risen 25% or more.  As the Supreme Court has ruled, we all know now, even though the Main Stream Media (MSM) chooses to ignore, Obamacare is a tax!  Now on top of the cost of healthcare we have an additional tax burden.  Any new tax increases the cost of doing business.

So now we have to  reduce employment to less than 50 workers.  We are playing spin the bottle every day, after work of course.  The winner gets to kiss his or her job good-bye but gets to keep the bottle.

We’ve hired the people the Government wanted us to hire.  If you were down on your luck, if you had been laid off or fired somewhere else, if you had remained unemployed past the limit of your unemployment benefits, and you have been kicked to the curb by the government, you were on our radar.  Why not?  There were thousands of reasons to hire you.  Government incentives.  Government dollars.

Those of you who turned our job offers down and preferred to live on government entitlements, it seems like you’re working harder not to work.  Too often we have seen your job inquiries were bogus.  Too bad there were no frequent flyer points from Craig’s List for answering either your own phony ads or ads for which you need not apply, because you were not remotely qualified.

At Anytown, you would have come to the front of the line.  The less qualified the better.  Our local, county, state and federal government want you to work for us and they want to provide Anytown, thousands of dollars in incentives to hire you.

Of course, we all know, there are the many companies who take the government’s money and not only never meet quotas, meaning jobs, but basically fail, pick a Chapter 7 or 11.

Many who were hired spent their valuable time to build a truly homogeneous product.  We made every effort to provide our product in many different languages, including all of the Asian dialects, but then we realized all of our major competitors learned to publish their products in English and are our best customers, too.  As part of the Sequestration, we had to let every translator go.

This has been a tremendous benefit to our company’s bottom line, the cost cutting terminations and the fact is there that are still employees working for us that do not comprehend, read or write in English. The last thing we need is a lawsuit from the government.

Those of us who are capable of doing our  job, spend countless hours covering for our fellow employees, and the company appreciates it!   Unfortunately, we are also announcing 10%, across the board, salary cuts for all personnel, will affect each and every one of you… the same.   I thank you for your sacrifice.

Finally, we poured unconscionable sums of borrowed money into unproven technology and insolvent companies.  Our investments, while popular with the majority of our customer base, they did little to contribute to our future growth in revenues or in our company’s best interest.  

After nearly going out of business it finally dawned on us.  The top 20% of our customers were contributing 70% of our revenues.   Our General Accounting Office (GAO) said it’s time we start paying attention to our paying customers.  

Let’s hope they love golf!

2012 – You’re Dead To Me… Part Three – You Didn’t Build That!

The Real One Percenters - Small Business People

The Real One Percenters – Small Business People

Pants on Fire! Where’s Politifact When You Need Them?

The Tampa Bay Times Thursday July 26th, 2012 issue, posted this front page headlines…

“Tampa businesses criticize Obama at Romney event, but live off government work.”

EntrepreNever

If it takes you 25 years of sweat equity running a ‪small business to make it into the 1% don’t you think there should be a waiver from the Obama administration on his tax on everyone who makes $250,000 or more?

Entreprenever Barack_Obama

The Endangered Species, Entrepreneurs, a.k.a. Small Business Owners

President Obama is disingenuous when he says he is championing small business and the middle class.  Most small business owners are Sole Proprietors, Limited Liability Corps (LLCs) or Sub S Corps.  I own a Sub S Corp.  President Obama knows the challenges I face.  He is counting on you, the voter, to lump small business owners like me into his campaign to denigrate the high income earners in this country.Hug

The Regulatory Tidal Wave – Vote Early and Vote Smart

The current path for our country includes tax increases and a tidal wave of more than 4,100 new federal regulations with a calculated cost of a half-billion dollars. This is a reality looming in Washington that has not been pushed to the forefront of discussion as “pending” under the current administration. It is impractical to think that businesses large or small can continue to hire employees without some semblance of predictability on taxes and regulations.Capture

Small Businesses – Over Regulated? Thousands of Community Banks a.k.a Small Businesses May Disappear!

Many community banks and credit unions are small businesses too and are subject to the same laws and regulations facing big banks.  The Feds have closed down 10 of our FI customers, costing them their jobs and costing us hundreds of thousands of dollars in lost revenues.  Speaking to many of our contacts at these FIs, most closing could have been avoided.

According to several of these sources, the Feds come in at the end of business day, Friday and take over the bank.  One source, described it similar to be treated as a criminal as she was forced to stand outside her cubicle while they accessed her PC.  She was kept there until after midnight.

Recently, an expert on financial services stated “there will be no de novo (startups) financial institutions due to the steep financial requirement and regulations.”

regulations.gov

As the number of community banks and credit unions shrink we are forced to seek new markets.  An added burden to  already burdensome economic conditions.  While the Obama administration panders  to big business, big union and advocates big government, small businesses continue to bear the brunt of over regulation.

This is the official government “fair warning” website regulations.gov.  Be afraid!  Be very afraid!

 

2012 – You’re Now Dead To Me – Part One – Forewarned is Not Forearmed

2012 – You’re Now Dead To Me… is about my early 2012 blogs – a time when I imagined sanity still ruled the earth.  I blogged a lot about stuff hoping reason would or could prevail.  Nope!

middle seat fullJanuary 2012

The Real Middle Class?  Invisible. The mainstream media and the politicians can’t see us from where they’re sitting.

Getting Religion – People only know you’re a Christian by your Facebook.”

What does “shovel ready” really mean to a small business owner?  It means building a business from the ground up!

What were you thinking?!

What were you thinking?!

Lick of Sense! I wish we could all afford to be like Newt Gingrich.  Gingrich is obviously someone who is used to getting what he wants.  If he doesn’t get it, he throws a childlike tirade.

February 2012

Paul Ryan for President – “America Deserves a Choice”

0_21_101508_Wallenda01Who isn’t afraid of failing?!  The Wallenda factor is just a normal fear of falling!  Who isn’t afraid of falling?!

March 2012

Added Regulatory Burden is a Tax on Community Banks, Credit Unions and Small Business

Lead with Words. Live Free, Not Die! John McCain said we should arm the freedom fighters in Syria.  John needs to spend more time on his iPad.

Alien_movie_poster

Alien Nation a.k.a., The Obamacare Nation, Alien, the movie was all about spreading spores and breeding aliens to prey on mankind, should the spores reach our planet.  Obamacare and its spores are already here.

Don’t hold your breath, but call me maybe, I have more rants in 2012.  I plan on summarizing them just for you, but I’m busy right now, sleeping.

The “Physical” Cliff, Writing Checks My Ass Can’t Cash

fiscal-cliff

The “Physical Cliff”

I kid around about reaching the “physical cliff”, where my body reaches the point whereby I can no longer sustain my anatomy.   If I don’t start getting back on the bike it could be I’m heading for a period of hyper-inflation (around my middle) and resulting in my declaring my own “ass warfare.”

Getting serious about the next time I get a “physical” what is it going to cost me and other taxpayers?  While everyone is paying close attention to the “Fiscal Cliff” what is happening to taxpayers right now and has been happening to us since the Affordable Care Act (ACA) passed?

What we had shoved down our throats, we’re now going to being paying for with taxpayer money.  Money our proverbial asses can’t cash.

Talk about subsidizing “Big Oil”, what about “Big Medicine?”  Now my Doctor’s fingers spend more time on the keyboard than they do with an exam.  My prostrate is getting jealous!

CMS – Centers for Medicare & Medicaid Services, in case you haven’t heard, has bragging rights to all of 8 Billion and more, so far, and rising rapidly, they are giving to hospitals and professional service providers for EHR – Electronic Health Records expenditures.

Supposedly the Obama Administration’s theory is that Hospitals and Professional Service Providers are too stupid to invest in technology, so they decided to give them a push.  Right over the Fiscal Cliff with the rest of us.  Well apparently Big Medicine isn’t as stupid as they think, because CMS is writing big checks and proud of it!

You can’t make this stuff up (Source :CMS).

  • More than $4.4 billion in Medicare EHR Incentive Program payments have been made between May 2011 and October 31, 2012.
  • More than $3.7 billion in Medicaid EHR Incentive Program payments have been made between January 2011 (when the first set of states launched their programs) and October 31, 2012.
  • More than 326,000 eligible professionals, eligible hospitals, and critical access hospitals are actively registered in the Medicare and Medicaid EHR Incentive Programs

Here’s your road map: (Source: HealthIT.gov)

Map of payments to providers by state.

Let’s not for get the EHR Vendors.  The government again’s picking winners and losers.

Unfortunately, the legislation was funded in a way that benefits large companies instead of promoting competition to improve software quality and lower overall cost.

Once the 2009 American Recovery and Reinvestment Act (ARRA) and the Health Information Technology for Economic and Clinical Health Act (HITECH) were signed into law, the “gold rush” was on (as described by one of our competitors²), or as The Onion News reported it: Recession Plagued Nation Demands New Bubble to Invest In.

Whether or not you are in favor of giving taxpayer money to executives to fly around the country in private jets, the stimulus money is starting to flow – and many providers are eligible (and a lot more deserving).

Source: AmazingCharts

²“I literally rent [an] airplane every Tuesday morning, and I hit five cities by Thursday night, every week. I’m cold calling . . . that’s my life now. It’s like any government fiscal stimulus thing — it’s a gold rush.’’

Jonathan Bush, CEO, Athenahealth Inc. (from Boston Globe 8/5/2010)

Maybe we need the Mainstream Media (MSM) to pick up on this story.  They could report on on all the hospitals and doctors that needed to upgrade their IT infrastructure or close their doors.  Heaven forbid, we would have to outsource our patient care to foreign soil.

%d bloggers like this: