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 Jeffrey Seyler on October 5, 2012 at 11:23am

It never ceases to amuse me when the volley of indignant epitaphs ensue in a conversation between two sides of WHO DID WHAT TO WHOM and WHEN.

It reminds of the Monty Python skit of the witch. How often we try to DRESS up those with whom we disagree with only so that we can BURN THEM with the satisfaction that we have personally done our best due diligence to ensure that that we are preserving a societal standard.

The ensuing conversation is less about politics and more about POLITICKING. Being that this is a FORUM on the ART and STANDARDS of SELLING how far away from a conversation of bipartisanship can we get here?

Buyers and sellers have been at opposite polar's since the beginning of time. But in order for there to be any form of commerce or politics there must first be some kind of a GIVE and TAKE that allows both parties to see a WIN WIN. Daily we engage in the this process known as Bipartisanship. We are enemy combatants with the very same souls that we depend upon to provide us all with our desired standard of living. We have ALL OF THE CONTROL in the world, so as it would seem, but until that one moment when we look each other in the eyes and extend our right hand in recognition of one of the most ceremonious moments known to man, we have NOTHING!

Gentleman, this conversation has; Gone NO WHERE! Benefited NO ONE! Solved NOTHING! Regardless of who wins the election in November professionals in our industry will still be faced with the very same obstacles as they have for the last 100 years. Stay TRUE to this forum and leave your POLITICKING to the other less desirable bloggs and forums found elsewhere.

 

Comment by Timothy Martell on October 5, 2012 at 11:04am

It is interesting when contrasting the backgrounds of the different posters on this thread with whom they support:

Obama Supporters:

David Ruggles - Claims to be a business owner, but it is hard to substantiate since his "company" has no website... strange

Mr. Natural - Internet Director

Lenny Bello - Sales Rep

Fred G. Slabine - Event DJ

and my personal favorite - Joe Sorenson - unemployed

Romney Supporters:

Mark Dubis - Carfolks Executive 

Brent Larsen - General Manager

Tim Martell - Business Owner

Jim Boldebook - Business Owner

William Phillips - Business Owner

Funny what you find when you go digging...

Comment by Fred G. Slabine on October 5, 2012 at 9:25am

BTW, I would like to mention that Mr. Ryan, Willard's running mate rubber stamp every spending item in Bush's administration. He has taken on his leader's cause "make Mr. Obama one term president"

Let's imagine if the republicans worked with our president, instead of fighting him on everything, what condition would we be in now?

Comment by James Schaefer on October 5, 2012 at 9:13am

William,

Thank you for entering into the discussion, reading, and commenting on my blog.

Comment by Fred G. Slabine on October 5, 2012 at 9:01am

Mr. Phillips this is not the place to be condescending! Please state your biased opinion without insulting others. Thank you

Comment by Fred G. Slabine on October 5, 2012 at 8:58am

Mr Davis,

Please understand Willard was not interested in saving GM with his money, so whether he was opposed or not is not important, no one but the US government was available with the cash to save GM& Chrysler.

Comment by David Ruggles on October 5, 2012 at 8:03am

Romney and math -

"He also knows that when he claims economic growth alone will erase the deficit, without raising taxes, he is inventing impossible numbers. As Howard Hill observed yesterday, the assumptions behind Romney's "something for nothing" tax claims are ridiculous. For the numbers to work, he would have to create not 12 million jobs, as he promised to do by 2016, but 162 million — more than the total current U.S. workforce. Or else the jobs created would have to pay more than $443,000 per year on average — which is even less likely than Romney's horse Rafalca winning the dressage medal at the next Summer Olympics."

Comment by David Ruggles on October 5, 2012 at 7:57am

@ WILLIAM - As a matter of record it WAS Bush 43 who fronted GM and Chrysler $17.4 billion to bridge them to the Obama administration.  The current President authorized TARP funds to be used for the DIP financing required to do a Chapter 11 BK.

Interesting that you think you know anything about the President's work schedule.  You must get some inside information different from the rest of us.

What we saw in the debate was a Republican candidate who instantly evolves in front of our eyes.  If you doubt this just go to YouTube.  You can easily find videos of him in his own words on opposite sides of a single issue.  He doesn't even know where he stands on the auto rescue and his campaign has declined comment to me on numerous occasions.  Its not where you start, its where you finish.  And Romney has now shown his cards.  He has also proven he can't do simple arithmetic.

You think you did everything in your life yourself?  You didn't have parents or teachers?  You didn't go to public school?  You never road a public bus?  You don't benefit from publicly funded infrastructure?  You haven't done business in the U.S.? 

This President is bad for the auto business?  Hell, without him we'd be trying to dig out from under Depression after a total collapse of N.A. auto production. 

Comment by William Phillips on October 5, 2012 at 3:52am

For the less intelligent who write to this and believe Obama bailed out the car industry you need to get in this galaxy of facts.  GM did file BK after a bailout, so the vendors and union pension busting saved GM not this President that has NEVER worked as hard as anyone in this industry.  Bush signed the bail out, not Obama who took the credit.  There must be some 5 car Freds commenting on this, because you surely dont work hard or smart if you think we need Washington to be the decider of our economy.  With the loaded scripts less available and someone to answer his BS, OBAMA got schooled in front of millions by a business man who can think on his feet like we in this industry often must.  This ignorant President can take his belief  in redistribution, I didn't do this on my own thinking, and pound sand.  This government never put a dollar or day of work in my business and I paid for the roads and services they vend out with my tax dollars, so I have the right to use them and expect it from them.  So this president is BAD for the car industry because he doesn't understand hard work.  Read his biography of his own words.  It isn't Gun violence that kills people its violence that kills.  It was not any political party that crashed our great economy it was greed.

OBAMA IS BAD FOR THE CAR BUSINESS OR ANY BUSINESS !!!!!!!!!!!!!!!   He got his shot and made himself a millionaire while in office.  ITS TIME FOR HIM TO GO.  

Comment by David Ruggles on October 5, 2012 at 1:39am

@ Doug - When was the last non socialist President?

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