Businesses are facing increasing uncertainty — temporary tax rates and burdensome regulations are just two of the factors slowing America’s economic recovery. Now even Kris Kringle is voicing concerns.
Jolly Old Saint Nicolas is the star of a new video from Bankrupting America, a group that shines the light on policies slowing economic opportunity in America. Over the past month, Bankrupting America and the Small Business and Entrepreneurship Council have told the story of real-life business owners. Now even Santa is having his say.
The stories are worth watching. Each showcases a different challenge facing American businesses — all the result of policies made in Washington, D.C.
• Wes Garner owns Great Lakes Calcium, a small business in Green Bay, Wis. He talked about the consequences of Obamacare and the challenges of more government regulation.
• Barb Werner started Black Eyed Susan, a boutique garden and home accessories shop in Vienna, Va. One of her biggest fears: the Obama administration’s requirement that businesses file a 1099 tax form if they make purchases of $600 or more from another business each year.
• Mike Fredrich of MCM Composites nearly faced a steep tax hike in January — and now will spend the next two years worrying about one in 2013 when the recent tax compromise expires.
That uncertainty is having a major impact on businesses. Heritage’s Mike Franc reports that entrepreneurs are sitting on nearly $2 trillion of cash reserves instead of using it to hire employees and invest in operations. That’s the highest level in more than 50 years.
“Our current and ongoing economic malaise arises from something we have not seen in America since the days of FDR’s failed New Deal,” Franc writes. “Our entrepreneurs — society’s economic risk-takers — have lost confidence — $2 trillion worth of confidence — in the federal government’s willingness to let them operate in a way that makes economic sense.”
How do you reverse this troubling trend? Franc suggests permanently extending the Bush-era tax rates, reducing the red tape, repealing Obamacare and expending domestic energy production.
Those are admirable goals that even Santa Claus could support.