FOX Business News - Helping Small Businesses Grow 5/18/2011
FOX Business News discusses Obama's policies negatively impacting small businesses.
Latest Small Business - Helping Small Businesses Grow
Airtime: Wednesday, May 18, 2011 | 4:53 PM ET
FBN's small-business experts break
down why the administration's policies
are negatively impacting small businesses.
Fox News:
The White House is highlighting its' effort seeking to boost small business
during their self-proclaimed small business week and our next guests say that
the White House doesn't really have a clue about what it takes to keep small
business viable and is doing more harm than good.
Here now to explain, we welcome the president of Marlin Steel, Drew Greenblatt.
He joins us from D.C. and instocksupplies.com vice president Jessica Strick. She says
that Obama likes big biz, not small biz.
Good to have you both. Drew, let me start with you.
If the president was really serious about trying to grow the economy
and to help businesses, wouldn't he drop the corporate tax rate, which
is just about the highest in the world, running at almost 40%?
Drew Greenblatt:
Absolutely. Next month I'm flying to Korea.
They have lower tax rates than we do.
I'm also going to be going to China.
They are a Communist country. They have lower tax rates than we do.
So when I'm here, in America, making everything I can in America,
importing nothing, it's a major disadvantage for us when
we're competing with companies that don't have to pay the same
kind of stiff taxes. It's like tying our hands behind our back.
Fox News:
Jessica, would it make any difference for you?
Jessica Strick:
It would. It would allow me to hire more people here rather than having to
save cost and look outside for employees and to help promote our products.
Fox News:
Drew, the president, after having lost on the issue in November/December, now
wants to go back and say, let's raise taxes on people making more than
$250,000.00 a year. But that's a lot of small business isn't it? They file
as individuals
Drew Greenblatt:
You nailed it. 70% of all American factories are S-corps. or LLCs, like my company.
So what happens is, our taxes are consolidated with the factory taxes.
When we make an investment decision to buy a new robot, to do a marketing
campaign, to keep some powder dry in case payroll is coming up and you're a
little bit nervous; all of these things are whip-sawed by the tax rates.
If the tax rates are at 40-50%, it makes it impossible to do the proper
reinvestment to stay competitive. To compete with the Mexicans, the Canadians and
the Chinese.
We want to be at our best game, but the way the tax system is structured now, we're
really distracted and it's like holding our hands behind our back.
Fox News:
You know Jessica, the former legendary CEO of General Electric, Jack Welch, took
a swipe at President Obama saying: His administration has "an anti-business
bias which manifests itself through intimidation trade taxes and regulations". Is
he right? Are the new burdensome regs. really a trouble for your business?
Jessica Strick:
It really is. As a small business, I'm trying to promote my product.
My Styrofoam cups, my Styrofoam trays and when I have do all of these
filings and try to get these certificates to certify myself as a women-owned business,
as a small business and other certifications, how do you have time to promote your
product and file paperwork?
Fox News:
So in the end, it's going to cost you money.
Jessica Strick:
It's going to cost me money and it could even drive someone out of business.
Fox News:
You know, Drew, Goldman-Sacs calculates that the new bank capital requirements
are going to reduce GDP growth by 2% and we can ill-afford that, can we?
Drew Greenblatt:
Absolutely. It's not only the capital requirements, it's the
regulators. The regulators are out there pressing banks to tighten-down
and make sure that every single loan is perfect. Even over the last couple
years. So a lot of small businesses that might have had a bad month, a
bad quarter or a bad year; even though they might have had many years
of good streak, are getting jammed-up by banks.
That really hurts our come-back.
That really hurts the rebound that we need.
Fox News:
You know Drew, a lot of companies, like Bowing, want to move their operations
to states that are right-to-work states so they can avoid the incredible cost
of unions. The Obama administration seems to be against that - right?
Drew Greenblatt:
Absolutely. By jeopardizing that South Carolina plan. They
spent tens of millions I think hundreds of millions of dollars,
to try to get that plant teed-up. If you stop people from
making wise investment decisions, they're not going to know
what to do and they'll say the heck with it - I'll build the factory
in another country.
