For the past four years there have been promises by the current administration of big plans being made for changes in taxes, health care, regulations and immigration that are close to the hearts of small business owners across the country. However, in many cases, what was promised and what has actually come to pass are almost complete opposites. The brings to mind the question- are all these Presidential promises smoke and mirrors?
Here are some of the main promises that were made and what actually happened in the end:
- The Promise: Given that large numbers of new jobs are created in the small business sector, let’s pass an agenda to help them succeed. We’re going to do away with regulations the prevent aspiring business owners from getting the financing they need to grow.
- What Really Happened: The “Jumpstart Our Business Startup Act” passed in April of 2012. The act lifted some restrictions on how small businesses raise initial funding and legalized “crowd funding”. However, there are still details being worked out.
- The Promise: Fewer regulations to reduce the barriers to growth and investment. The President ordered a review of what he deemed unnecessary federal agency rules that didn’t make sense or placed unnecessary burdens on small businesses. This will save businesses and citizens more than $10 billion over the next five years.
- What Really Happened: Although there are fewer regulations, there has been a high price to pay for those reductions. Even though the administration claims the health and safety benefits outweigh the cost, the review has not been widely accepted by the small business community.
- The Promise: Health reform will give uninsured Americans and small businesses a chance to choose a health care plan that is affordable in a competitive market while reducing costs and premiums for millions of businesses and employees.
- What Really Happened: Beginning at the end of 2013, the law mandates that companies with 50 or more employees must buy health insurance or pay a penalty. The affordability of premiums for employers is still undecided. This penalty if paid means new costs for companies that haven’t offered coverage in the past.
- The Promise: The health reform law will correct a legislation flaw that has place unnecessary bookkeeping burdens on small businesses.
- What Really Happened: The Affordable Care Act requiring companies to report vendor payments to the IRS was stopped by bipartisan legislative support before it ever really gained any ground.