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October 19, 2004
Two Weeks
Two weeks from today is Election Day. The National Dialogue on Entrepreneurship has offered a comparison of the two candidates on issues related to small business and entrepreneurs. Here is my annotated version.
Taxes
Sen. Kerry's "nuanced" approach to policy comes through loud and clear when it comes to taxes. Any tax cuts will be surgical at best. Such an approach is no more than incremental governmental meddling, and is what has created the current tax code that is no longer measured in pages, but in pounds. Pres. Bush, on the other hand, wants to cut taxes for all and simplify our system. I hope that he would even go farther and just throw the current system out the window.
"Kerry...proposes to pay for (his programs) by rolling back all Bush Administration tax cuts that assist those making more than $200,000 per year....Unlike President Bush, who seeks a permanent repeal of the estate tax, Kerry would raise current exemptions so that individuals with less than $4 million in assets and small businesses with less than $10 million in assets would remain exempt from this tax."
"President Bush...(plans) on making permanent the tax cuts that he pushed in 2001 and 2003. Other priorities include restructuring and simplifying the tax code and providing tax breaks to encourage private investment in lower-income communities."
Regulatory Policy
Cutting governmental regulation that strangles small business is, in my opinion, Pres. Bush's single most important domestic policy initiative to date. Getting government out of the way of entrepreneurs has proven, by study after study after study, to help foster more entrepreneurial activity.
"By many measures, the Bush Administration has developed an impressive record in terms of reducing regulatory burdens on small businesses. The Small Business Administration's (SBA) Office of Advocacy has expanded its role in reviewing new government regulations that might create burdens for small firms, and the President has eliminated many regulations, such as new ergonomics rules, that were especially disliked by business owners."
"Kerry appears more open to new government regulations than is President Bush...."
Small Business Assistance
This is where Pres. Bush has taken a huge political risk. He believes that the free market can help small business much better and much more efficiently than governmental programs. And the recent experience with the SBA has proven him right. The critics have cried that Bush abandoned small business. On the contrary, he has helped them by privatizing programs to assist them.
On the other hand, Sen. Kerry wants to expand government involvement...in everything.
"Kerry has regularly supported full funding and funding increases for programs such as Small Business Development Centers, the Manufacturing Extension Partnerships (MEP), and the Advanced Technology Program (ATP). In contrast, President Bush had proposed elimination of both the MEP and the ATP. And despite a 25% cut in its budget, SBA has succeeded in expanding many of its key programs. For example, the 7(a) loan program has been making record numbers of loans in the past two years."
Health Care
Again, Bush favors free market solutions, while Kerry believes that government can do everything better for us.
"Bush's approach emphasizes the use of newly created Medical Savings Accounts (MSAs), which permit employers to set aside funds that employees can use for health care expenses. Bush also proposes that small firms be allowed to band together and buy insurance through trade associations. By pooling funds and spreading risk, these Association Health Plans (AHPs) could help reduce overall health care costs."
"Kerry's health care plan would provide refundable tax credit to small businesses that could cover up to 90% of the cost of providing employee health insurance. Kerry would also expand Washington's role in assisting those who must pay for catastrophic health coverage. This initiative would pick up 75% of total costs when an individual's health care expenses exceed $50,000 a year."
Pres. Bush has been more like a free spending liberal than a true conservative in most areas of domestic policy. However, imagine what a Pres. Kerry would do to us. We would shift from a gentle stroll toward socialism under Bsuh, to a full sprint under a Kerry presidency!
Posted October 19, 2004 07:50 AM
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Comments
I'm sure Kerry has a "PLAN" to cure everything....
Posted by: Phillip Reid at October 22, 2004 09:10 PM
Why couldn't someone, perhaps even the candidates themselves, summarize their positions for voters so succinctly???? Too bad in the past few days we spent so much time pointing fingers as to whose fault the flu vaccine shortage was (are you kidding me?) and not enough time on basic differences of how candidates would handle key areas of our economy. I would hope that educated voters choose their candidate based upon ideals of spending government (our) money among other things. For business people differences in party platforms DO make a difference in their businesses and their votes should reflect those choices. How much government intervention does business need or want? Where is Harry Brown (long live the Libertarians) and can I still vote for him?
Posted by: Rebecca Burcham at October 25, 2004 07:58 PM
at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
