Snap Fact #349 - What’s That, Obama is Bad for Small Business? Mr. Romney Will Have to Find Yet Another Story!

Post date: Oct 21, 2012 6:47:28 PM

Snap Fact #349

What’s That, Obama is Bad for Small Business? Mr. Romney Will Have to Find Yet Another Story!

There's a common idea that big businesses recovered quickly from the recession while small businesses have been held back. In terms of profits, that might be true. But for hiring it's the other way around. It was big businesses that savagely cut employment and are now hesitant to rehire. Small businesses have nearly put the recession behind them.

The President Claims that he has given small businesses as many as 18 tax cuts while the Republicans claim he has raised taxes on small businesses. Only one of them can be essentially correct, and of course it’s the President, with a caveat.

Although 18 is technically correct it is a stretch because some have expired, some were counted twice when renewed, and others were renewals of already existing tax breaks. Although the President is technically factual, The Rational Majority thinks that the spin is not necessary nor appropriate.

With that said, here is a summary list of the Presidential tax breaks given to small businesses from CCNMoney:

“Republicans try to portray Obama as harmful to free enterprise, so the president is sure to invoke his record of tax cuts when making his re-election pitch to businesses. If extensions or expansions aren't double counted, the list comes out to 14 tax breaks --and only five are still around. Here's the complete list.” (Headings only - click the link at the end for the full explanatory text)

Tax breaks that are still here and intact

Health care tax credit:

Shorter holding period for owners:

Mobile phone deductions:

Startup deductions: Limited penalties on tax errors:

Tax cuts that are still around but weaker

Bonus depreciation:

Exclusion on capital gains:

Higher expensing:


Work opportunity tax credit:

Tax breaks that are long gone

Payroll tax exemption:

Lower estimated tax payments:

Health care deduction:

All-purpose credits: The Alternative Minimum Tax

In our last SNAP-CAP we pointed out how so many diverse fiscal measurements are mutually confirming that we are clearly on the road to recovery, and we are traveling that route with big THANKS to our visionary President – and a big NO THANKS to his Congressional opposition who has self-admittedly tried to thwart President Obama at every opportunity. With the Dow approaching its all time record high, and most other indicators on the upswing, The Motley Fool is as much on top of the business world as anyone, and more than most. They pay close attention to what is going on in the financial community.

It’s possible that the Fool is politically opinionated, but I’ve found them to be apolitical and just focused on the markets and the

economy. Here is an article from The Motley Fool that follows up on yesterday’s general financial SNAP-CAP. It contrasts with the bulk of opinion on small business employment, but spotting the money in the muddle is what makes Motley Fool highly regarded.

“Small-business employment is almost fully recovered”

“Search the phrase "small businesses aren't hiring," and you'll be greeted with thousands of articles arguing why small business aren't hiring -- too many regulations, not enough regulations, high taxes, and so on.”

“But few of the articles question whether the assumption that small businesses aren't hiring is true to begin with. Turns out, they are hiring. Small-business employment is within 1.5% of where it was when the last recession began in late 2007, having recovered most of its recessionary decline. Compared with large businesses, small businesses are in a hiring boom:”

Sources: ADP, author's calculations.