Obama's Mixed Message for Small Business

Even as he seeks to create jobs, the President is sending mixed messages on taxes and costs for small businesses.

President Obama today called for a cut in taxes for small businesses, including the elimination of capital gains taxes for one year.  This is a good move, as lower taxes can provide real stimulus small businesses desperately need.

Yet at the same time, the President and Democrats in Congress continue to try and force through cost increasing measures such as fines for lack of mandatory health insurance, carbon taxes and even an easing of job-killing unionization rules.

The good news for companies is that it looks like carbon taxes and card check have been pushed back until next year or shelved permanently.  It is also good news that the President seems to finally be coming to grips with what most in the business community already know about economic growth: lower taxes good, higher taxes bad.

But the bad news is that there are simply too many mixed messages from Washington on what cost increases small businesses will face for most of them to do any real hiring.

Small businesses are key to the jobs market.  As the President noted today, 65% of all new jobs created in America over the past few years were generated by this group.

But clarity is key to business, and labor is generally the most expensive item on any company balance sheet.   Only with clarity on cost will most small companies invest in new labor.

Unfortunately for job seekers, clarity is the one thing we lack from a Washington that seems intent on sending mixed messages.

Read this post and others on Brian Sullivan's blog.