Business

Is President Barack Obama good for business? It depends on who you ask.

McKenzie

If you were one of the many vendors peddling inauguration memorabilia this past weekend, then Obama was certainly good business for you. Fans from coast to coast were clamoring for Barack-related paraphernalia, including bobbleheads, cups, posters, mugs, buttons, stickers, t-shirts, and everything in between.

There were other businesses that developed special events to take advantage of the Obama frenzy that drenched the nation. Take Charlotte’s radio man, Jaye Delai, for example. He and his wife Monica, hosted an MLK inaugural jazz event that featured an all-day buffet and live performances. Various churches and organizations sponsored inauguration motor tours that bussed riders directly to the festivities in Washington, D.C. In addition, US Airways scheduled more flights on its Charlotte-D.C. route this past weekend.

Companies—large and small—positioned themselves to profit from this historic event. But the recent inauguration-related activities and sales gimmicks benefitted businesses over the short-term, what does Obama mean for businesses long-term?

According to Obama’s campaign speech, Americans earning more than $250,000 a year should expect a tax increase of 5 percent. That means the wealthiest 1 percent of taxpayers would see their taxes go up. Another portion of Americans, those making less than $200,000 would get a tax cut. Obama says that since the majority of business owners do not earn more than $200,000 annually, his proposed tax decrease would be a break for them as well.

More recently, the president called for a $3,000 tax credit to businesses for each additional full-time job they created. In simple terms, a business adding 6 jobs would get a tax credit of $18,000. So far, a lack of support and criticism by key congress people makes it unlikely that this component will be included as part of the final bill. Even still, this proposal does illustrate Obama’s desire to include businesses as part of his economic plan.

For more clues on how business owners will fair under Obama’s regime, they can also look to the president’s American Recovery and Reinvestment Plan. Currently it appears that the plan mainly focuses on working families, senior citizens, homeowners, and recipients of unemployment insurance. It also proposes aid to the states that were hardest-hit by the mortgage crises to prevent additional cuts in public services.

This plan, according to the president, would provide immediate relief for the most needy. And though businesses aren’t directly assisted, it’s assumed that consumers will pass along their tax savings to boost businesses. How this will actually play out is unknown.

But one thing is for sure, when we implement strategies to keep more Americans in their homes and gainfully employed, we’ll begin to build a stronger America overall and that makes for stronger businesses too.

MONIQUE McKENZIE is the owner of Small Business Boot Camp (www.smallbusinessbootcamp.biz), a Charlotte-based consulting firm to entrepreneurs. Log onto the website to hear The McKenzie Business Forum Thursdays at 3 p.m.

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