Which Presidential Candidate is Right for Automotive Dealerships

The social media sites were hot last night during the presidential debate between Former Massachusetts Governor Mitt Romney and current President Barrack Obama. Since the election of former President Bill Clinton, our nation has been evenly divided over which man is the best person for the job of leading our nation amongst the world.

As a small business owner who helps companies, specifically automotive dealerships, build their business and "Win Customers for Life"; I have some very strong opinions about who I feel should become the next elected President of the United States of America. However, I will let the reader research and decide who I am for, and who I am against. (James Schaefer) This blog is meant to encourage voter participation and look at one philosophical point of view of each candidate and who is the best person for business.

I will try to take a simple common sense approach and put forth the facts as if I were hiring for an executive position within my own company. This essentially is what Americans will be doing in November when they go to the polls. However, just like in the real world; some people would not make good business owners or managers, and some people need to reevaluate whether they are making the right decisions when they vote. Now remember, I am writing this blog about one of the many issues that is very important to me and my company. I am not writing this issue concerning healthcare, defense, or government sponsored programs. Therefore, a truly informed voter should look at all of the issues individually and way them to how their interest would be affected by the outcome of this year's election.

The following point and position is described referencing Small Business and each candidate's position. Hopefully, by laying this out in this format the reader will be able to ask questions of their own and vote for the best candidate that will help them and their interest. This is why the United States is so great. We all have a voice in who will govern us for the next four years.

Small Business:

The fundamental question is what is a small business? My definition is a business that was started from an individual or a group of individuals that developed their company because there was a need for their services or products. It is a business that is not financed by government or publically traded on the stock market. A small business is a private company, and how much money the company makes is NOT a factor. The reason that I feel the amount of revenue a company makes should not be a factor whether the business is considered a Small Business or not is because the risk completely falls on the individual or group of individuals who have created the company. They could fail if the business fails, but if it succeed they should benefit as well. In addition, I believe that the higher the revenue the company receives, the more opportunities they are able to provide for future employees and other companies that provides goods or services to that company.

Now the government has a different definition of Small Business. The Small Business Association (SBA) defines a small business as one that is independently owned and operated. It is organized for profit, and is not dominant in its field. Depending on the industry size standard eligibility is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period.

Most Automotive Dealerships should fall under this definition of a Small Business. However, until recently most dealerships were not classified as a small business. The Recovery Act of 2009 reclassified 89% of automotive dealerships under the SBA; however, the gross revenue receipts were put at $8.5 million. My contention is that this is not fair to the Automotive Industry. There should not be a cap placed on any private business in terms of revenue received nor should a cap be placed on these automotive dealerships for profits gained.

The simple reasoning is that if an automotive dealership is successful; they employ sales people, service technicians, administrative personnel, accountants, parts specialist, and vendors (like my company). Their staff brings in more income which they will spend stimulating the economy. The vendors they employ are able to hire more employees and the cycle of economic growth will continue in a positive direction.

The candidates' positions:

President Obama believes that a Small Business is classified by how much revenue a company brings in. He believes that a company making $250,000 or more should be taxed at a higher rate according to CNNMoney.com. Under this premise, the government would be able to collect more taxes and thus be able to provide more programs for Americans.

Governor Romney believes that taxes are necessary, but tax breaks for Small Businesses would create more jobs. He has stated that the 3% of the highest grossing revenue companies are responsible for 80% of the jobs that Small Businesses provide. In short his method for creating more jobs is to give a break to these businesses and hope those companies will hire more people to help the business continue to experience growth.

I understand each candidates philosophical position on the issue and respect their and others opinion. The president believes that a company which makes more money should pay more taxes to help the country and its government backed programs. The governor believes that leaders of successful business will practice good ethics, and thus provide a piece of the pie for more individuals.

A new study by Ernst and Young projects that a tax rate hike will kill 710,000 small business jobs. Depending on who is elected will determine if this result comes to fruition.

I can tell you this. The larger my company becomes, the more people we will be able to hire. The more profit my company earns, the more benefits we will be able to provide individuals. The more benefits we are able to provide to employees, the better our retention of employees become. If we are taxed at a higher rate, our company will not be able to provide as many jobs otherwise. It is true, I will put more dollars into my account if my company continues to be successful. Contrary to the president's speach about small business "you didn't build that business" in July, I used my own money to start this company. My family and our employees depend on the success or failures of this company. I am sure many automotive dealerships will face the same concerns.

Hope to see you at the polls in November.

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Comment by James Schaefer on October 6, 2012 at 12:03am: So the week is finally coming to a close (I know Saturday is our biggest day), and I enjoyed seeing everyone's comments on my blog. Many of the points that were made- I agree with, and many I don't. However, I respect all of the opinions and am thankful that each of you took the time to read my blog. Earlier today, I Googled Best Candidate for Automotive, and this article hit #1 out of 120 million other stories. That shows how much power DealerElite has which is made up of all of us. Thanks to each of you, and I look forward to further shares.

Comment by Mr. Natural on October 5, 2012 at 4:28pm: It's sad to think that millions of Americans have their opinions supplied to them by the television. But I can see by quite a few of the comments here that this is truly the case.

Comment by David Ruggles on October 5, 2012 at 4:27pm: @ Tim - RE: "David, I may disagree with your opinion, but at least you have life experience to base your opinion on. What has the president ever done except go to school, get elected and write a book? Other than rack up trillions of dollars of debt, I mean."

You mean other than rescue the country from Depression and restore about $24 trillion in wealth through the rebound of the stock market? How about stopping the accelerating job loss of almost 800K per month he inherited? Maga c** laude? President of the Harvard Law Review? Passed the ACA. Gave the risky order to get bin Laden? The list goes on.

Comment by David Ruggles on October 5, 2012 at 4:24pm: @ William - Who are you talking about. Who are your liberals? Who is writing on their employer's time?

Comment by David Ruggles on October 5, 2012 at 4:22pm: @ Doug - So here you go with the RW talking points. If you want small government, try Somalia. That will turn you into a raving liberal over night.

But just curious, who are you referring to when you say "big government?" Surely you can't mean Obama. If you use Reagan as your shining star you can make some comparisons. If you want to offer up another RW President as standard bearer, feel free. Reagan gave us universal healthcare through his ER mandate, a HUGE addition to government, paid for by all of us at the highest prices possible. Obama gave us ObamaCare, modeled after a Republican program and a gift to insurance companies. Reagan gave amnesty to millions of illegals. Obama chose to not enforce deportation on illegals who were brought here as children and grew up here UNLESS they are criminals. He has deported thousands of illegals, more than any other sitting President. Reagan raised social security taxes. Obama has provided a temporary reprieve. Obama inherited the worst economic downturn since the GD. Reagan didn't inherit a recession, but one began soon after he was sworn in. Reagan had a stimulus package made up of pork to military contractors and tax cuts financed with deficits. We did get a decent Steven Segall movie out of the battleship Missouri and we did kick Grenada in the ass. Obama had a stimulus package too. Infrastructure, state support to maintain teacher and first responder support, and tax cuts financed with deficits. But I can't understand why Reagan's tax cuts were called "tax cuts" while Obama's are called "spending" by the right wing.

Comment by David Ruggles on October 5, 2012 at 4:13pm: RE: "no. not talking about you david... I read your linked in profile. Surprising that a former dealer principal would stand on the left, but then the 70's were a long time ago."

So you think you know me from a LinkedIn profile? And you think that someone who stand for fact is LW? Or you think that anyone not dug into the rabid RW foxhole is LW?

How about Jack Kemp? Do you brand him a LWer too?

As for myself, I was a sales person and GM in the 70's. I had my first piece of ownership then at the age of 29. My career life didn't end there.

For those of you who cling to the idea that the Community Reinvestment Act caused the mortgage crisis all you need to do is check the stats. 85% of all mortgages made during the bubble period were made by Wall Street banks NOT regulated by the CRA. If the remaining 15%, only a few were CRA caliber loans, certainly not enough to have caused any real damage. Regardless of what you THINK Clinton or anyone else said, there is no possible way the CRA had any real impact. Wall Street did what it did because the could. They weren't regulated. Kemp was once HUD Secretary. He would know.

Comment by Mr. Natural on October 5, 2012 at 3:40pm: This is hilarious...@ Mr. Phillips: You're right, this is a blog, but IT IS a place to share your opinions, not keep them too yourself, which you certainly are not doing! Are you the moderator? I was not aware there was one.

It cracks me up...A guy tells another to keep his opinions to himself, then spews his all over the page.

POLITICIANS= BAD FOR THE CAR BUSINESS, GOOD FOR FAT CATS WHO DON'T CARE, ONLY TAKE.

Comment by Doug Davis on October 5, 2012 at 3:38pm: The Community Reinvestment Act had nothing to do with it? I listened to an interview where even Clinton admitted that it set the stage.

You believe that big government and high taxes is the answer. Nobody is going to convince you otherwise. I'm done.

Comment by William Phillips on October 5, 2012 at 3:28pm: Amazing what time Liberals have to do this stuff rather than work. This conservative is going back to work running his business. You liberals keep eating up your employers time and money while the one who makes it figures out how to replace you.. My last post to the uneducated, uninformed with lots of time that true producers dont have. Five car freds and lame duck managers vote for OBAMA !!!!!!!!!!!!

Comment by Timothy Martell on October 5, 2012 at 3:23pm: David, I may disagree with your opinion, but at least you have life experience to base your opinion on. What has the president ever done except go to school, get elected and write a book? Other than rack up trillions of dollars of debt, I mean...

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