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Why Obama Is Best for Your Business
Small business tax cuts, misconceptions about “Obamacare” make President Obama a better choice for the commercial electronics integration industry.

Article


October 19, 2012 By Chelsea Cafiero

Editor’s Note: Chelsea Cafiero, EH Publishing’s political expert, was asked to provide an objective argument for each Presidential candidate. Read her case for Governor Romney here.

Constant commercials, televised debates, and office chatter on the subject of politics make it hard to forget that the Presidential election is upon us.

Integrators are torn between the two candidates, but a recent poll by Thumbtack.com found that a larger amount of small business owners believe President Barack Obama is more supportive of small businesses than his opponent, Governor Mitt Romney.

Another study, conducted by pollster John Zogby of JZ Analytics for CompTIA, expressed President Obama as the favored candidate by those in the IT industry.

But what do CIs have to gain if the President is reelected in November?

Business and Taxes

President Obama and his campaign have touted the figure “18 tax cuts to small businesses” which have been put in place under several acts already passed by the Obama administration. But the President plans to do more - under the Jumpstart Our Business Startups Act (JOBS Act), he proposes two major initiatives to help small- and medium-sized businesses, which make up the majority of the CI industry.

While it may take a few years to be fully put into action, the JOBS Act makes several more adjustments to the tax system, but more importantly, aims to change the nature of taking a company public. The act calls for a framework to make it easier for entrepreneurs to sell shares, something that can help small firms raise money quickly. Furthermore, the President plans to allow companies to raise $50 million - from the current ceiling of $5 million - before big regulations take effect, and allow these regulations to set in gradually instead of all at once.

Related: Why Romney Is Best for Your Business

The Obama administration also plans to lower the corporate tax rate from 35 percent to 28 percent to allow firms to use more of their money to grow, hire, and invest.

President Obama proposes adding $1 billion to the amount of federal funding available to Small Business Investment Companies, and letting small businesses write off up to $250,000 in capital investments in 2013.

Outsourcing

Other taxes breaks could come in the form of incentives, such as President Obama’s proposal to promote manufacturing in the U.S. rather than overseas. Both candidates agree that outsourcing is detrimental to the jobs market in the U.S., but the Wall Street Journal explains that Obama has a much more “substantial” proposal to give companies incentives to bring jobs home, mainly in the form of tax cuts.

About the author

Chelsea Cafiero is a writer and editor at Commercial Integrator. She also works closely with sister publications CE Pro, Security Sales and Integration, and Campus Safety Magazine. Chelsea has previously covered politics, local news, and residential electronics. She joined the CI family in 2012.
View all posts by Chelsea Cafiero
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