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.
Comment
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Comment by lenny bello on October 5, 2012 at 12:26pm
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listen mr martell before you make assumptions you should know that i started cleaning cars at my fathers used car store in the early 90's in 1998 my brother and i ran our used car store till 2008 when the economy turn for the worst so don't tell me that i have never been there sir i just never forgot where i come from sir and i am not afraid to start all over again ?
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Comment by Timothy Martell on October 5, 2012 at 12:17pm
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Fred, I made no judgement, merely pointed out a fact. Are you suggesting that people should not take pride in their occupation (or lack thereof)?
That is nice sentiment, but we do not know each other well enough to know anything about how we treat other people. I know how I treat my family, friends and 50 employees. I can't say the same for you or anyone else on this forum.
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Comment by Timothy Martell on October 5, 2012 at 12:09pm
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I have no problem with people expressing their opinion, but let's not make the mistake of calling it fact. Remember, that most of us (business owners) have been where you are, but you have never been where we have been.
As a very young father at 20, I know all to well the realities of the working class. My first "career" was selling Kirby vacuums door to door because with no skills and leaving college to support an unplanned family, it was the only job I could get. I have spent 21 years working inside a car dealership in positions including the wash bay, body shop, parts delivery driver, parts counter, service writer, sales man, internet manager, F&I Manager, Sales Manager, and corporate marketing director for a dealer group.
I am now a business owner and fortunate enough to earn an income that does place me in the 1% category. At 19, I was on food stamps raising a child out of wedlock and today I am a millionaire, husband, and proud father of 3 girls ages 15, 8 and 2 months. I say this not to brag or toot my own horn, I am just 1 example of many who have recognized the opportunity around us and seized a piece of the american dream. Any one here is capable of the same, all that is required is the commitment to achieve it.
As a business owner we have a perspective that the average american worker will never have. We get a very clear picture of how government policies effect our ability to produce income, provide benefits to our employee's invest money so that we can create other business opportunities and a host of other perspectives all the result of the policies that government impose upon us.
What many fail to realize is that once success has been attained it is not tremendously difficult to maintain it. Sure you have to make wise decisions, but as one would expect, in life we "take care of our own" first. That means that when policies cause a shrinkage in the economy, business owners generally do not make less money, they reduce expenses - this generally causes a reduction in the work force.
Think about it... Even if we do not lay off an employee, but just cut our marketing budget, that may cause another company to lay off an employee as a result. Trickle down economics is not just a good catch phrase, it is the reality of small business.All of the politicking makes for a fun s*** show to watch, but at the end of the day, if you are an employee, (or unemployed) do you want to live in a society where its people's way of life is provided for via food stamps and other entitlements or would you rather have a say in how much money you make and where you live and what your lifestyle should be?
Clearly there are some people who would rather not have to work hard and would rather just get a check and the mail and watch Jerry Springer (or whatever it is that they watch these days - honey boo boo?)
Remember, at the end of the day, if Romney loses... He's still rich and has a wonderful family. No president will change that. Right now, our company is looking to move its offices over to New Hampshire, because they are friendlier to business (and no state income tax). The wealthy have options and poor economies will only impact the working man, they rarely impact the wealthy to any significant degree.
Help us keep you working; provide you better benefits; keep your health insurance costs lower; invest in other opportunities so we can employ more of your family members. Small business powers the american economy, not food stamps and tax credits...
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Comment by Fred G. Slabine on October 5, 2012 at 11:50am
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Tim,
Is that the way you judge people? By their occupation? Why not try classifying people by their morals, character, and how they treat others; not by their bank accounts or occupations.
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Comment by Fred G. Slabine on October 5, 2012 at 11:46am
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Mr. Philips, Yes, I am a proud democrat, yet I will not lower myself to your way of communicating "Totally unprofessional" Remember this, your clients could look at you with different eyes due to your behavior in a public opinion blog.
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@ timothy martell i guess you must be one of the many one percenters here do you have a problem with working class people expressing there opinions or are you scare of the facts ?
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Comment by Doug Davis on October 5, 2012 at 11:39am
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Obama's plan is more of the same. With his tax and waste mentality, he will run up the deficit even higher. We are looking at the largest increase in taxes, in our history, come January 1. If that goes into effect, look for the largest drop in the stock market since 2008. We already have the highest unemployment in history. GNP is down to 1.3% and with Obama, we could see it go even lower. Obama owns this economy.
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Comment by Timothy Martell on October 5, 2012 at 11:32am
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Good try Jeff... But it takes more than the truth to quell an angry mob. Can someone pass the popcorn?
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If the Republicans would pass any of a number of Obama proposals, it would positively impact unemployment. Start with the Infrastructure Bank and the Open Fuel Standards Act. The Republicans have been more involved with obstruction to the detriment of the country. Their stated goal is to deny the President another term. That's all you need to know about them.
More "shovel ready" jobs programs? We saw how well that worked. No car guy would possibly consider the Open Fuel Standards Act beneficial to the car business or consumers for that matter.
After getting Obamacare shoved down our throats, it should be every American's goal to see this President defeated. The real obstructionist is Obama.
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Comment by William Phillips on October 5, 2012 at 11:27am
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Mr Slabine
This is not your blog so please keep your comments to yourself. Your liberal views and opinions are clear as are mine of the ignorant liberal view. Thank God that the Republicans took a stand to prevent this Socialist leader OBAMA form cramming any more of his failed policies down the american publics throat. OBAMA CARE is not liked by even the bulk of your own party. One term is the solution for the OBAMA plague And yes Mr. Ruggles I did do it myself, something your should try before you comment on it. Its not Romney's potential lyes that worry me its the clear position of this Socialist leader OBAMA that are terrifying. Embassy employees killed and he's trying to drum up votes. That enough of an example for you.
OBAMA = BAD FOR THE CAR BUSINESS, GOOD FOR LIBERALS WHO DONT OWN BUT TAKE.
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