The definition of compromise is “something accepted rather than wanted.” The self-interests of politicians trump what is good for the country (in many instances) and nets, us the citizens, something not wanted and not in our long-term interests. Politicians are typically so tainted with their own agendas (of getting re-elected) that they see issues only in “black or white.”
Let’s take the debate on extension of the Bush tax cuts. Both Republicans and Democrats are so hell-bent on winning that they have failed to see the real issue and best-interest compromise for the country. There are 25 million businesses in this country – with only 27,000 having more than 500 employees. These medium and large-size companies, as a whole, have been stagnant in job growth over the past two decades. Where new jobs have come from, and pulled the country out of the past recessions, is from small businesses. From entrepreneurs who have ideas for businesses, start small, and then add employees as their businesses begin to make money. This “sweet spot” of job creation is generally funded by the founder, perhaps with some loans, but typically not by the so-called rich folks.
The “black and white” issue addressed here is that there is a big difference between a small business owner moving up in tax brackets, to a combined income of over $250,000, compared to people earning $1 million a year all the way up to tens or hundreds of millions a year. If the small businessperson knows the government is going to take half his earnings in taxes (combined state and federal), he or she has no incentive to grow their business. When George Soros, Bill Gates, Warren Buffet, or Bill Clinton espouse the position that the rich should be taxed more, I doubt there is anyone who would disagree – even coming out of a recession. Because they don’t typically invest in small businesses – their holdings are in large corporations – the business segment that hasn’t had a net gain in jobs in two decades.
There is an obvious compromise here, so easy to see by anyone who has studied the job market and jobs growth history. It is to realign the tax brackets. What makes lumping the combined wife/husband income of $250,000 in with the same tax bracket of George Soros sacrosanct? Why not give the small business owner the ability (funds) to grow their business and add employees? Why not keep the tax cuts in place for those with incomes below $500,000 or even $750,000 to give them the confidence to reinvest in their businesses? And terminate the tax cut for higher incomes (the true rich in our society), who invest in big business – which has shown no signs of job growth, in the aggregate, for decades?
The American public is solidly behind the premise of not burdening our children and their children with a national debt that will erode their quality of life, and perhaps be so deep that we (nor they) can never dig our way out of it.
Politician’s need to study our own Department of Commerce statistics on jobs creation and make a common sense compromise – not one (illogically) perceived to get their party re-elected.
Richard S. Pearson is the Author of “5 Necessary Skills to Keep Your Career on Track,” available on Amazon.com. He has held vice-president positions with four multibillion dollar travel industry companies and three Internet early stage companies. He has a BA degree from Regis University in Organizational Development. His experience has given him a unique perspective on how to navigate the organizational structures of both large and small companies. He has hired and trained hundreds of employees from frontline salespeople to vice presidents, and coached many through their careers. He is currently working on facilitating the large increase of travel between the US and China, which is taking place. http://www.5necessaryskills.com
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