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My View: The Depreciation Act Hurts Small Businesses.
Published on Tuesday, August 16, 2022 at 8:45 am
My View by Brad Kramer
How often do you hear the Democrats telling us that the rich should pay their “fair share”? Democrats regularly use this slogan to lash out at the wealthy and big business.
Brad Kramer
Starting a business is the hardest thing I’ve ever done. Harder than parenting, marriage, or home ownership, as far as I’m concerned. Plus it’s rewarding! Business is nothing more than the art of exchanging something of value for another value. A business owner can be a gas station, a factory, a small side hustle selling their art products, or one of thousands of other business models, like selling homemade lemonade to my daughter’s lemonade. My business is a consulting firm, and I primarily serve manufacturing companies, so I’m happy to work with many small business owners who care about the safety of their employees and managing their business risks. When I do that, I get to know the stories of these business owners and managers, and many do it with the goal of improving the lives of their employees and bringing resources back into their communities. The Democrats vilify business owners because greed is rare. While there are businessmen who exploit workers and cut corners in order to get more toys and wealth from their business, most of them put their efforts into providing good paying jobs for their workers.
For those business owners, every business setback means more challenges to pay their employees well and devote those resources to a better quality of life for their employees, such as more paid vacation time or lower health insurance premiums.
Do you have a public pension, 401(k) or other retirement account? You probably own shares in many large businesses, which makes the law of depreciation profitable, meaning you have to work until you’re older to pay more money into your retirement for the same benefits. If you want GM and GE to pay their “fair share,” look at your retirement account. You may own a small portion of the business that you think doesn’t pay enough. When you think only the “rich” pay their fair share, let’s face it, the person who most often says “pay their fair share” is… YOU!
While building our business, my husband and I have faced many challenges, including tough conversations with our bank, learning how to manage money, how to pay bills when our businesses don’t bring in money, paying taxes, and taking enough time away from us. Businesses to focus on unpaid time off and others. Starting a business is a completely different skill set than practicing the business you started. You may have a carpenter starting a construction company, and now they need to build on their carpentry skills to include how to invoice, cash flow, pay taxes, get the right insurance policy, market their business, sell, manage and train employees. Manage them, customers, and much, much more. They generally start as marketing, HR, IT, according to their company. Security, sales, operations and accounting professionals until the business can hire one person for each role.
One in five American businesses fail in the first year. Half of businesses fail within five years. When a business fails, the owner usually loses everything they have invested, and must also repay the loan they have guaranteed. This often destroys marriages. Few are relatively wealthy for successful business owners. If business owners don’t build businesses, our economy will grind to a halt. There would be no effective or new product coming to market. The quality of food and goods will decrease. Unemployment was on the rise. That’s exactly what happens when you put too much weight on the shoulders of businesses. That’s what the Democrats’ anti-inflation bill would do.
Over the past few years, my husband and I have worked very hard to build our business. There is a joke among entrepreneurs that “it’s an overnight success story, 20 years in the making,” meaning that what appears to the world to be an overnight success, took many years of hard work and sacrifice. Like millions of entrepreneurs throughout American history, we have struggled in very similar ways. Every time government gets in the way of efficient businesses, we hurt our own economy, future generations, and our own communities.
If you think the 87,000 new IRS agents are only going to audit the “rich,” first look at your own retirement accounts, your neighbors, and your employer. Don’t be surprised when the ones being audited include you. Deflation cuts nothing but jobs.
Brad Kramer is a member of the Freeborn County Republican Party.
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