Tag Archives: small business

The Conflict of Economic Compromise

By Andrew Busch | Published: December 8, 2010

Yesterday, President Obama cited the extension of the long term jobless benefits as one of the major reasons for why he was willing to compromise on tax cuts for high income earners. With the unemployment rate increasing to 9.8%, almost every economist and strategist on CNBC believed that this extension was the humane thing to do to help them.

What’s interesting is the dilemma it generates from a job creation standpoint. The federal government sends out the benefit checks, but businesses help pay for it. In general, US businesses have to pay for laid off workers (not fired) as long … …READ MORE

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NFIB Small Gains

By Andrew Busch | Published: November 9, 2010

The Small Business Optimism Index rose 2.7 pts to 91.7 in October and indicated that small biz is more upbeat about the future. According to Dow Jones, “Owners expect an improvement in demand, with the expected sales index up 4 percentage points to 1%. The subindex of expected business conditions in six months also turned positive, jumping 11 percentage points to 8%. And the subindex on earnings trends continued to improve, rising 7 points to -26%. Hiring also made gains. The October employment subindex increased 4 points to 1%. For those firms that are hiring, the subindex covering job openings … …READ MORE

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The Way Forward is Looking Better

By Andrew Busch | Published: September 8, 2010

Fact one, small to medium sized firms are the drivers of job growth in the United States. Fact two, the government needs to engage in policies to assist these firms that create conditions that encourage risk taking and reward that comes from that risk taking. Fact three, the government needs to reduce burdens on these firms that discourage investment or increase their costs of doing business. To create employment, we hold the above to be self-evident and to be true.

If we review the last two years, we see variations of assistance provided by the government that not only miss … …READ MORE

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It's the Small Business, Stupid

By Andrew Busch | Published: August 19, 2010

The optics on the US jobless claims data are terrible and will generate a renewed negative newsflow leading up to the US employment data on September 3rd. It is clear new jobs are not being created. It is clear that whatever economic prescription policy makers have attempted is past its “Sell By” date. It is clear that the policy direction forward for the US economy must focus on the creating the best conditions for small to medium sized firms. Remember, companies that are 5 years and younger generated over 90% of new hires between 1997 and 2007. These firms are … …READ MORE

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One Small Example of Govt Created Uncertainty:

By Andrew Busch | Published: July 30, 2010

As the markets and businesses delve into the recent major pieces of legislation, they find the bills contained onerous provisions that mandate non-economic activity and increases in costs. As an example in section 9006 of the health care law, there is a requirement that vendors and small businesses are required to file 1099 forms for any goods purchases that total over $600. This would force all businesses, including small businesses, to file tax forms listing the amount of their annual transactions with vendors like their paper supplier, bottled water distributor and tax accountant.

The WSJ reports, “The reporting rules have … …READ MORE

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Sounds Like a Good Idea:

By Andrew Busch | Published: January 29, 2010

As part of his small business focus, President Obama wants to offer tax credits to companies that hire new workers. According to CNBC, Obama’s proposal would give companies a $5,000 tax credit for each net new worker they hire in 2010. “Businesses that increase wages or hours for their existing workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay. No company could reap more than $500,000 from the combined benefits, one of several features meant to tailor the program more to small businesses than to large corporations. Startup companies could receive half that … …READ MORE

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