Summer jobs bummer
Survey: Small business owners more pessimistic over economy
- Duration 8:52
- Date Jul 14, 2012
Survey: Small business owners more pessimistic over economy
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This transcript is automatically generated
Your summer -- -- summer job.
-- America's biggest job creators saying uncertainty is keeping -- down and holding back from hiring.
That's as tax hikes loom over a reported one point two million small businesses.
That our only hope of jobs recovery just so hot off the radar.
Hi everyone I'm Brenda but -- this is Bulls and Bears and here are the Bulls and Bears crazy man Tobin Smith.
Jonas Max -- along with John to back out.
And Steve Murphy welcome to everybody.
Okay John -- -- small business owner but the president says that the tax hike that he wants for those making more than 250000.
-- only a fact a very small percent of small businesses so no big deal.
This is this is a big deal Brenda and really.
What the president doesn't tell you in that is that the small percentage of companies -- generating most of the production.
And consumption from their employees so it's it's very uncertain for the smaller businesses to not know what their health care costs are going into next year also.
Possibly be facing a looming tax which you'll increase your expenses and when when businesses don't have certain certainty.
They're paralyzed on the small business owner I know how it feels right now companies -- -- -- the stability and they don't see any stability when they aren't certain what their future fixed cost -- And even this latest survey shows that that as so many small business owners are pessimistic.
Our small business owner are you.
I'm not my business is not really affected by the world economy a whole political media consultant but I'll -- -- Yeah.
There's never -- recession and politics yeah that's right I think what they're not there's pessimism out there there's no question about that we see that and all our our polling.
Business -- wonder what's going on with the world economy they wonder whether we're gonna go into faced a double dip.
Were obviously in a slowdown a worldwide slowdown the bricks of slowing down a Brazil India Russia China and were slowing down.
But this this idea debt raising taxes on an individuals who make more than.
Dollars 500000 for a family it's gonna affect hiring is completely false it's well okay I hire people to make more money.
-- -- -- -- -- -- Dairy -- -- not a political consultants.
Are you pessimistic and what this means -- -- people who are who should be hiring in America.
Well bread today it is not good let's get back right to Wear this the a bomb attacks is hit it hits that 3% of that.
The small businesses that are doing the bulk of the hiring they're the ones that make the ball -- revenue therefore they pay the ball -- tax it hits them squarely.
As John alludes to say they have the taxes going up along the quote unquote rich you have the Obama.
Health care taxes you have by the way capital gains.
Taxes are gonna go way out so you know when John is talking about his busy saying hey wait a second.
If I have is they've worked for me to hire people buy equipment to all that's up assuming John bought any equipment -- juries.
Buying big turbines is up like that but saw -- You know all -- a small business do that well let's just look at what the -- says despite what the you know as Steve says and I and he has a great visit that probably is recession group.
Most small businesses surveyed said hey wait a second were gonna cut back on hiring were gonna cut back.
On buying a court and so.
We we -- now have two choices either.
It's true that the economy's gonna collapse because these taxes or these people in this survey -- outright lying I'm used to believe them.
Former -- -- could -- be something else could it be that there's just a lack of demand worldwide.
People aren't buying and so small business owners.
-- hire they can't.
Am buying new turbines or whatever it's the number one reason for -- behind is like a demand for your products and they'll decide is the number one answer in the survey from Stanley through the number -- answer yeah it would probably be a map of forecast for the -- -- people and businesses are depressed about the don't think this is great with the looming tax increase.
I will still they'd abolish it by saying nice embers and it won't hate is why won't raise enough money to pay off the massive deficits he's running right now so it actually doesn't have enough people.
But I also think it ultimately comes -- -- demand and this notion that we always have it seems to always have expiring tax cuts the next of what the last five or six years back and it's actually not a great way to run a tax program because you're always think -- -- -- -- -- gonna go away and then nobody demands on their hire somebody now.
It have been better for always had.
A smaller tax at that we could have paid for -- -- actual spending cuts than one that we can afford that would pretending goes away so we could show the balanced budget over twenty years a lot of things not at issue I have but tell me.
First up the numbers 250000.
Dollars for for family not 500000 -- so so that's a big issue the second issue is that.
Of all the taxable income for small business comes from one point two million businesses so it's not like this is a non.
You know consequential number.
If you're going to be I'm sorry folks life's not -- one point until later these thirty million small businesses account for 91%.
And when you raise those taxes for 5% the federal ever they go up 2% the state level and all of a sudden you've taken hundreds of billions of dollars out of the system and that hurts economy and and it hurts jobs.
-- see that it's not 500000 it's 250000.
Does that change your answer.
No not at all the decision by businesses is made on profits period.
Not taxes how can I make more money if by -- this man or woman will that help increase by profit.
It's you know and says -- -- from your profit that ain't gonna erode your law in style that.
Four and I think we're talking about here.
4% is just not corporate says David let's misstate plus federal -- here area it's the DC is well it adds up to about 809%.
And extra cash money by the white and that's not a debate about the way the -- -- for most people.
It should -- -- that -- Clinton tax rates we had boom door under Clinton it's not that taxes -- John I had.
-- all as a small business owner who isn't a political consultant.
I can say that most small businesses in my appears that one when we when we to speak about business right now.
Everyone is looking to hold on to the employees they have so that they can keep up.
Okay we're at capacity used mineralization numbers that are at all time highs with people trying to keep the people they have working as hard as they can.
But when you look in don't know what you gonna spend next united we -- to consider hiring.
But you will consider if it affects your own personal income getting rid of one personal put another person to fought Arnold -- that -- Percent adds up on the one point two million businesses charity.
You know Brent Brent I wanna get back -- -- you know as Steve and I think it John it's made the one point that.
That companies hire based on -- you know are they gonna make more profits that's true yes.
But as I'm sure they both remember from accounting one -- one.
Those profits are translate into retained earnings which most companies.
Plow right back into the business so it before -- profits were two dollars and another one dollar.
You only have one dollar to plow back into the business that means you're gonna have to hire less people open one fewer restaurants -- -- machinery stuff like.
And not affected him right up front what effects it down the -- The margin -- and we're not going to be factors it is auditory taxes a gallon or not I don't Jana not talking about in -- -- taxes here rob was over Air France is proposing a 90% tax rate right now to solve their problems yeah.
Let's even -- very -- example and again I'm not saying good high taxes are good.
The end of the day is people -- -- -- 30000 dollar employee right now because it's only gonna increase revenues -- 40000 dollar unity is not it's not gonna make 60000.
As long as they can bring revenues of 50010 dollars in and hires and for -- the -- gonna bring -- -- They're not -- because real or imagined they don't think they're gonna cover that labor cost the tax -- not gonna change at the demand is not there for the product right now with the low tax rates in effect including.
Right I Gary David and win it and that price point because the right point is is that.
For the million dollar business if I'm 10% last that's one employee that I'm not only not gonna hire are obligated to try to -- to the sellers profit so I'm gonna maybe get rid of one person to keep my proper world was last year it's at the -- -- guys we make the decision.
You should do that anyway if you can do it without changing your prophet.
Yeah you want it that way you spend money you invest in people so that you can get future problems profits out of them.
But when you don't know what you're fixed cost -- it's not good to take risks like that -- -- All right that's out of the last word fat fat fat as a.