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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 President Obama here.

In the wake of the economic recession, CIs have begun to see promising revenue growth in the last couple of years. They are optimistic about the future of the industry, but aware that the looming Presidential election could mean the difference between further growth and significant setbacks.

Integrators across the board are torn between the two candidates, but a recent survey conducted by Buildzoom.com shows that 74 percent of contractors support Governor Mitt Romney. A large majority of the construction industry believe that Governor Romney would have a more positive impact on the economy than President Barack Obama, citing the Governor’s business experience.

But how might CIs benefit from a Romney administration come November?

Taxes

As a long-time businessman, Governor Romney understands how high taxes hurt firms of all sizes and how taxes on individuals hurt the economy as a whole. He has promised, as President, not to raise taxes on anyone in this sensitive time of economic recovery.

This is a stark contrast to President Obama, who has advocated raising taxes on higher-income Americans to decrease the deficit. Romney, meanwhile, proposes extending the Bush-era tax cuts that are set to expire at the end of 2012. The decision to keep taxes low for wealthy Americans will directly benefit the industry, argues Mark Coxon, integration firm veteran and CI blogger.

Related: Why Obama Is Best for Your Business

“The A/V industry is dependent upon disposable income,” Coxon explains.

“Whether you are in residential or commercial A/V, let’s face it, our product is a luxury good, not a necessity. People with extra money buy TVs and home automation for themselves, and companies with cash in their budgets buy nice conference room equipment, classroom systems, etc. Taxing higher income individuals reduces disposable income and decreases our market.”

Governor Romney also plans to cut taxes for businesses. He advocates cutting the corporate tax rate from 35 percent to 25 percent, three points lower than Obama’s proposed rate of 28 percent. He argues that a high corporate tax rate ‘handicaps’ the U.S. economy, putting Americans at a disadvantage in our competition with the rest of the world. Romney adds that cutting the tax rate significantly will make corporations more competitive and allow them to hire more people, invest, expand, and increase revenue.

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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