July 31st, 2010
10:50 AM ET
8 years ago

Republican takes on Obama over support for small businesses

Washington (CNN) - Delivering this week's Republican internet and radio address, Sen. Mike Johanns, R-Nebraska, discusses a number of new policies and laws which the GOP says hurt - rather than help - small businesses.

Related: Obama uses weekly address to push small biz bill

"Isn’t it time, Mr. President, to tone down the rhetoric and to govern?," Johanns says in the weekly GOP address.

Johanns adds, "You talk about creating jobs and that sounds good, but your policies just do the opposite – with a fiercely anti-business tone."

(Read Johanns' full remarks after the jump)

Republican Weekly Address
Delivered by Sen. Mike Johanns, R-Nebraska
July 31, 2010

“Hello, I’m Senator Mike Johanns from the great state of Nebraska.

“I begin with a very sincere question for our President.

“Isn’t it time, Mr. President, to tone down the rhetoric and to govern?

“I’m a relatively new member of the U.S. Senate. But, I’ve had an opportunity to serve in the Cabinet; to govern a state; and to serve as the Mayor of a wonderful community.

“And I learned early on that to advance an agenda, a leader needs to pull people together.

“You talk about creating jobs and that sounds good, but your policies just do the opposite – with a fiercely anti-business tone.

“Let’s take an honest look at the impact of your agenda.

“More than 80 percent of jobs are provided by the private sector. Those are the jobs that put food on the table, pay the mortgage, and send our children to college.

“Our small businesses generate 65 percent of the new jobs.

“In Nebraska, we like to call them our Mom and Pop enterprises.

“These are really good people who don’t want to get caught-up in a political debate.

“They want to get up in the morning, head to work and find creative ways to build their businesses.

“And your policies, Mr. President, are hurting them.

“Let me give you an example: embedded in your health care law – under Section 9006 – is a job-crushing provision.

“It affects every business, every church and charity; every state and local government.

“It requires all of them to track their purchases and when they hit $600 with any vendor in a year – for any services or supplies – your health care law requires them to file a 10-99 form with the IRS and with that vendor.

“This will create a mountain of new paperwork – increasing it by as much as 2,000 percent, according to one study.

“One small business owner in Nebraska did an analysis and came to the conclusion it will cost his business an extra $15 thousand dollars a year.

“Now that may not sound like much here in Washington, but to a small business in Nebraska, that would go a long way to putting another American to work.

“Instead, that money will pay for paperwork… and for what purpose, Mr. President?

“Even the National Taxpayer Advocate – a division of the IRS itself – predicts there will be little benefit and a mess of erroneous tax penalties.

“This foolish policy hammers our business community when we should be supporting their job growth.

“It’s only one example of how the Administration’s promise to support small businesses really rings hollow.

“Then there’s the employer mandate in the health care law, which studies confirm will divert money from wages.

“It forces employers to provide government-approved coverage or pay a tax of $2,000 per employee.

“Another example: the new Medicare tax.

“The majority of small businesses pay taxes at the individual level, so this new $210 billion tax will hurt; hitting businesses that employ between 20 and 200 workers especially hard.

“And that’s one-quarter of our workforce.

“To put it simply; your actions thus far, Mr. President, don’t encourage small businesses to hire employees.

“You’re signaling to the business owners that they best be very cautious, not only because of the flurry of new taxes and regulations, but also because a national energy tax is next on your agenda.

“It's time to stop pushing anti-growth policies and start supporting a real job growth agenda.

“After all, what matters most is what we actually do, not what we say.

“I'm Senator Mike Johanns of Nebraska. Thank you for your time.”

Filed under: GOP • issues
soundoff (116 Responses)
  1. Thad

    it's called "closing a tax loophole," What a moron. It is true that the number of 1099s will increase significantly, however, it will force business owners to keep better records, and to report income more accurately, and pay the proper amount of taxes. Second, will also cut back on fraudulent business deductions, which will ease the burden on the IRS to catch tax cheats and, hopefully, save the rest of us honest taxpayers the hassles associated with overbearing IRS scrutiny. The work involved in issuing 1099s to business vendors and processing the 1099s that you issue and receive will not be overbearing. Typical republican B.S.

    July 31, 2010 01:52 pm at 1:52 pm |
  2. GL

    Isn’t it time, Mr. President, to tone down the rhetoric and to govern?

    No Republicans it is time your party start helping President Obama get this country back on track and stop playing politic.

    July 31, 2010 01:55 pm at 1:55 pm |
  3. GL

    “Let me give you an example: embedded in your health care law – under Section 9006 – is a job-crushing provision.

    “It affects every business, every church and charity; every state and local government.

    “It requires all of them to track their purchases and when they hit $600 with any vendor.

    THIS BILL HAVE NOTHING TO DO WITH THE HEALTH CARE BILL you racist boring fool. I am listen to this boring old fart lying about everything.

    Sorry this is not going to work because have nothing to do with Health care bill. I really am getting sick of the games the Republicans and the voters are playing. He makes not sense what so every trying to tie this bill with the Health Care bill.

    July 31, 2010 02:00 pm at 2:00 pm |
  4. once upon a horse

    @ vic

    I agree with you 100%

    All the GOP does is whine, complain, say NO yet when asked what they would do differently or where they would cut in the budget they have NO answers. Polls claim that the American people trust the Dems with the economy more than the Repubs and the Repub rating is in the mid 20's (Dems aren't much better though in the mid 30's) STILL they also claim people want to put the GOP BACK in control. Makes little sense to me but I'll do my part to keep it from happening that's for sure.

    July 31, 2010 02:00 pm at 2:00 pm |
  5. FactCheck

    If the RNC thinks that they are going to gain control of either Houses, they will be in for a rude surprise come November.

    July 31, 2010 02:05 pm at 2:05 pm |
  6. ThinkAgain

    All these Republicans whine about how they don't want to extend unemployment benefits because it will "add to the deficit".

    And yet, these same Republicans are against letting the Bush tax cuts expire – as they were intended to do.

    Folks making over $250,000 a year are the ones affected by the Bush tax cuts; they'll pay 39% instead of 36% (i.e., they'll pay the same rate they paid under Reagan).

    The vast majority of Americans will not pay a dime more – and our country will collect taxes from those who can most easily afford it.

    Which will help bring down the deficit.

    See, folks, how Republicans always defend the wealthy and big business at the expense of the rest of us?

    July 31, 2010 02:07 pm at 2:07 pm |
  7. mamacoo

    Paperwork? Are you serious. They are complaining because people will have to complete some additional paperwork!!! How funny. Try working as a Social Worker and then talk about paperwork. WOW!!Cry me a river

    July 31, 2010 02:09 pm at 2:09 pm |
  8. ThinkAgain

    Why are businesses holding back on employing people?
    Why all the timidness?
    Why are they waiting for the economic "climate to improve"?
    Since when are there guarantees in business – or in life, for that matter?
    Where's that entrepreneurial spirit we always hear about?
    Why are small businesses listening to Republicans when their economic policies are proven failures?

    I don’t get it …

    July 31, 2010 02:13 pm at 2:13 pm |
  9. steve white

    Both paries love to feed the sheep. But in Nov. you are finish

    July 31, 2010 02:14 pm at 2:14 pm |
  10. carlos

    augsbee, snow, four and the door, TCM, phoenix88, monu mental truth, willy brown, obozo, nobama and all the rest of these m..f.. rs.....get a life, get informed, do not be ditto heads, your below plant level IQ shows at every posting.......oh, you are part of the tea tards, I forgot!!!!

    July 31, 2010 02:15 pm at 2:15 pm |
  11. carlos

    I forgot Henry Miller......the libertard, man,what a bunch of rejects....rest my case

    July 31, 2010 02:19 pm at 2:19 pm |
  12. ThinkAgain

    vbscript2 complains about having to file a 1099 for every supplier from which they purchase more than $600 per fiscal year.

    Don't you guys use computers? Business software is set up to handle this.

    After a 3-second Internet search I found these instructions for a popular business software on how to handle this supposed "mountain of paperwork:"

    1. Open the 1099 tax preferences.

    2. For the "Do you file 1099-MISC forms?" option, select Yes.

    3. Link the 1099 categories you report to the IRS to the [software name] accounts you track them in, and then click OK.

    4. Set up the appropriate vendors to be eligible for receiving 1099-MISC forms.

    "Each time you make a payment to a 1099 vendor, [software name] automatically adds the amount to the total you must report on the vendor's 1099-MISC form. You can view your 1099-related payments by creating 1099 reports.

    After verifying that the reports include the right vendors and cover the right accounts, you can print 1099-MISC forms for your vendors on preprinted forms designed for your printer."

    Sounds pretty simple to me!

    July 31, 2010 02:19 pm at 2:19 pm |
  13. Massachusetts Small Business Owner

    As a Democrat for 40 years and a small business owner for the past 15 years, I believe President Obama has harmed the small business community in several very grave ways. I am a lifelong Democrat from Massachusetts, but my family and my business must take precedence over party loyalty, and I will definitely NOT support Obama should he decide to run for a second term. The economic policies of my party have been particularly destructive, and it is time for some fiscal responsibility and spending restraint in Washington. My Democratic Party does NOT seem capable of exerting self control when it comes to spending, and that is destructive to everything that I hold dear.

    July 31, 2010 02:20 pm at 2:20 pm |
  14. Ron in Asheville, NC

    Yeah, and where was he when the Bush administration ruined literally tens of thousands of small businesses in their "restructuring" of federal-state transfers? I had to close my family business when, as a result of those "unfunded mandates," employer contributions to unemployment and medicare in the state I was living in nearly tripled in one gulp. As then governor of Nebraska, was he one of the complaining governors (some of whom were Repubs)? I don't believe so . . . Sounds to me more like a Republican being a Republican rather than a senator actually looking out for small businesses. "Business" as usual . . . not news.

    July 31, 2010 02:22 pm at 2:22 pm |
  15. ThinkAgain

    In case CNN doesn't want to post my lengthy comment about how easy it is to track vendors and issue 1099 forms, here it is in a nutshell:

    vbscript2 complains about having to file a 1099 for every supplier from which they purchase more than $600 per fiscal year.

    Don't you guys use computers? Business software is set up to handle this.

    Your vendors are already set up on your system; you make sure they're designated to track what you spend on them; at the end of your fiscal year, you run a report and print the 1099 forms.

    Sounds pretty simple to me!

    July 31, 2010 02:22 pm at 2:22 pm |
  16. carlos

    the repulsive repugnantards will be ZEROS this coming november,and I mean ZEROS, Period!!!!!!!

    July 31, 2010 02:23 pm at 2:23 pm |
  17. carlos

    “I’m a relatively new member of the U.S. Senate, and very soon you will be kicked out, you are a disservice to this country.....

    July 31, 2010 02:26 pm at 2:26 pm |
  18. Tom-Vermillion, Ohio

    Let me get this right, suppose a farmer buys, over $600 worth of stuff from a Coop hardware store. The farmer wishes to right off the money he pays on his taxes. He sends a 1099 to both IRS & the Coop. Like wise the hardware coop sends 1099 to IRS and its Vendors. Whats the problem with this? Or is it possible that the GOP 'gentileman' desires certain business, every church and charity to HIDE incomes and expenses? Illegal drug 'business' do this all the time. (Just as an example)

    July 31, 2010 02:45 pm at 2:45 pm |
  19. Victim of Puritan Wingnuts

    Smoke and Mirrors – is this all the Republican Party can do? Just point fingers, whine, complain, play games. Gee no wonder the only ones left in the Republican party are the ones with no college degree, missing some/all of their teeth, or people that get their "news" from blogs or word of mouth from other ignorant buffoons.

    July 31, 2010 02:50 pm at 2:50 pm |
  20. Steve in Denver

    Tone down the rhetoric and govern? From the party that voted against it's own small business tax cut bill? Against the 9/11 relief fund? The party who has drug the senate to a grinding halt with every stinking issue being filibustered?

    Self awareness is in dreadfully short supply amongst the neocons.

    July 31, 2010 02:51 pm at 2:51 pm |
  21. Steve in Denver

    @ib: Surely you must be kidding. Obama has lowered taxes on everybody who makes under 250k. But, you are a neocon. If Rush didn't say it, it can't be true.

    July 31, 2010 02:53 pm at 2:53 pm |
  22. Judith

    Doesn't this guy file taxes? We've had to file 1099's for/with anyone that we pay over $600/year for many many years now. How is this news?

    July 31, 2010 02:55 pm at 2:55 pm |
  23. Steve in Denver

    @Augsbee: Interesting speculation. Harvard grad, became state legislator, senator, and now president. You're right. No accomplishment.

    On the other hand, we have the wildly successful George W. Bush. He has owned many businesses. Every one of them, except the Texas Rangers, failed and had to be bailed out by daddy's friends (mostly Saudis).

    So glad we went with the smart one this time!

    July 31, 2010 02:57 pm at 2:57 pm |
  24. Steve in Denver

    vbscript2: Interesting posting name as you rant about a tax form. If there is a law that you must file a 1099 for each supplier whom you buy more than $600 from each year, it will be a simple report out of the accounting software. If you really have knowledge of VB Script, you'll know how simple it is, and how lame this argument is.

    July 31, 2010 03:01 pm at 3:01 pm |
  25. Liz the First

    Rag on Obama mercilessly for not creating jobs, then vote against a bill that would create jobs. by now it should be clear to a stump that the rethugs are only motivated by politics and regaining power, not helping the American people. can they possibly be any more hypocritical? they seem to be trying for the world record! they are the ones who trashed the economy and now they're doing everything in their power to block its recovery, all the while condemning Obama and the Dems for not getting it done. how dumb do you have to be to not see this?

    July 31, 2010 03:06 pm at 3:06 pm |
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