GM and The Continued Assault On Business and Commerce In This Country

Well, it has finally happened. General Motors filed for bankruptcy this morning. Going back a couple of years, who among us could have even fathomed that we would ever be reading or writing that GM, an icon of American industry, would file for bankruptcy protection? While the news of GM saddens me, what really frightens and angers me is witnessing the war on business and commerce that continues in Washington.

Recently I had an interesting conversation with a seasoned business executive about the risk assessment process that companies use to gauge the threats to their business. This individual shared that in a meeting with other business executives they concluded that the number one threat to their respective businesses was our government, or more specifically, the actions of our political leaders in Washington DC. As I have had to say in other Blog postings, this is not a Donkey/Elephant issue, it is, as the President of a multi-billion dollar company stated, a very real threat to our freedoms and way of living in the United States of America.

For those who believe this is a bit melodramatic, you should have been at a small luncheon I attended with one of our Congressional representatives. During the questions and comments portion of the event, the CEO of a very successful company stood up and shared some facts, thoughts and comments that left the group speechless. His main theme was that at this moment, he has no idea (and neither do our politicians) how much the Waxman Markey Cap and Trade legislation will cost this country, or his business. (In fact, Rep Waxman acknowledged recently that he hadn’t even read his own legislation.) He has no idea what his business will look like if the Employee Free Choice Act (or Card Check) legislation passes. What he does know is that if Cap and Trade and Card Check passes he will shut down his three plants in this country and move the manufacturing facilities elsewhere, and this country will lose a couple thousand jobs. 

For those who believe that this is just one successful business person who can’t accept or deal with “hope and change,” you need to pick up the clue phone and dial reality. There are lots of CEO’s and business owners who are thinking the same exact thoughts. They will not sit idly by as our politicians pass legislation that they believe will ruin their businesses. And when – not if - they move their manufacturing out of this country, we will literally be saying goodbye to hundreds of thousands, if not millions of good jobs. These jobs, as one CEO told me, will never be returning to the United States. Is this what we want?

Folks, here is what is really scary. Cap and Trade and Card Check are just the tip of the iceberg. As I write these words, no can tell us:

·        What or how the health care legislation will impact our business. All we know is that the President wants it fixed this year. And, oh by the way, we’re likely to have our health care benefits taxed.

·        What the Federal Tax picture will look like when the current rates expire in 2010. All we know is that it’s time for the rich (a.k.a. many of whom are small business owners) to pay their fair share.  (Even though the New York Times cited that the top 1% of income earners paid about 36.7% of federal income taxes in 2007 versus 25% in 2004; the top 20% of income earners paid 67.1% of all federal taxes; and approximately 40% of income earners paid no federal income tax and received money back from the government.)

·        How the repatriation of foreign earnings will affect where American companies choose to relocate their headquarters. Keep in mind, it’s pretty easy to move and there are lots of countries that would love to roll out the welcome mat for these companies.

The list of potential legislative actions that will have an adverse impact on business could go on and on. And we have not even touched on how the rule of law is being shredded as the government eliminates the rights of the Chrysler and GM bondholders. Hopefully, you’re a lot smarter than our politicians and you understand that it makes no sense to attack businesses when you are talking about the need to create jobs and lower the unemployment rate.

For those of you who are asking, What can I do?, here is some advice we have offered in previous postings. First, get informed! Take the time to peruse the internet, read papers, or listen to news sources that help you understand what is going on. Second, make your voice heard. Call your Congressional representatives or Senators’ offices and ask them to oppose legislation that you believe will be bad for this country. You can also write letters to the editors, call the radio talk shows, and attend meetings where these issues are being discussed. Finally, get involved. There are a myriad of ways you can use your time and energy to support candidates who are willing to stand up for the United States instead of their parochial interests.

If we sit back and do nothing, then we will have nothing to complain about when all this “hope and change” comes to fruition.  Paraphrasing the famous quote: “A country that is big enough to give you everything you want is strong enough to take everything you have.” Please, please, please … if you care about this country, let’s work together to stop this assault on the businesses in this country.

TranzAct Technologies, Inc.