An Open Letter to President-Elect, Barack Obama

Dear Readers:  The purpose of this Blog is to comment on trends or issues that are likely to affect the readers of this magazine. Under normal circumstances, it would not be appropriate for me or any other Blogger to comment or write columns that could be construed as “political.”  However, as the wild gyrations in the stock market and the uncertainty of the bailouts for the automotive companies attest, these are not normal circumstances. Given our concern for the future, I drafted this open letter to President-Elect Obama.

Dear President-Elect Obama:

Congratulations on running an exceptional campaign. Regardless of how one voted or one’s political views, the election is over and you are the incoming President of the United States.  Every citizen of this great country owes you their support.

It’s obvious from your timely appointments that you recognize the importance of taking immediate action to address our concerns about this economy. No one likes to wake up to yet more news about job losses as large corporations throughout America eliminate thousands of positions.

If the economy is to move forward, entrepreneurs will play a critical role in creating new, profitable jobs. Thus, this letter from an entrepreneur who is like thousands of other entrepreneurs throughout this country. As a group, we have created hundreds of thousands of jobs over the past 10 years.  Given your hectic schedule, this letter may get overlooked. But in case it makes it to your desk, here are some suggestions to consider.

First, nature and the economy abhor uncertainty. Yet as of this date, we have no idea what your tax policies for 2009 are going to look like. We know that you want to cut taxes for 95% of Americans – even though 40% of Americans don’t pay Federal Income Tax.

In June 2008, I had the opportunity to speak with Austan Goolsbee, one of your senior economic advisors. His response to my question about how raising taxes would help an economy mired in a recession was disheartening. He stated that what we heard you say about wanting to raise taxes on capital gains, eliminate the cap on earnings subject to FICA, and increase the marginal tax rates, wasn’t really what you meant to say. Afterwards, the other CEO’s and Presidents who heard this response all had the same reaction: If what we heard you say isn’t what you meant to say, please tell us what you really meant to say.    

Second, every entrepreneur who runs a business with a sizeable number of employees has concerns about what labor laws will look like in the future. It is important to recognize the value and benefit of good labor laws; however I don’t know a single entrepreneur or employer who thinks that the Employee Free Choice Act (commonly referred to as “Card Check” legislation) is good labor law. I understand the importance of this legislation to the labor unions that played a significant role in your election, but if the Act passes, it will have a stifling impact on the creation of new jobs.

Entrepreneurs would suggest that you suspend consideration of card check legislation until the economy has recovered and job growth is once again on the rise. As long as you’re at it, why doesn’t your Administration go on record and state that since job creation is a high priority, they will be very careful about changing or adding new labor laws. For example, amending the Family Medical Leave Act to compensate employees for their absence would not be considered until the economy is in better shape.

Third, (and this is a very personal request): With the election over, can we stop the class warfare diatribes and call a halt to talk about the redistribution of wealth, “paying more taxes is your patriotic duty”, and “you’re not paying your fair share of taxes?” I have been actively involved in associations of CEO’s and Presidents from around the world that represent thousands of members. I would not presume to speak for all of these members, but I know what some of these members are thinking:  These individuals, like me, have worked hard, taken risks, created hundreds of thousands of jobs, and paid their fair share of taxes. Is it necessary for Democrats to continue demonizing the individuals who will assume a large share of the responsibility for creating new jobs and getting this economy back on its feet?

Since we don’t know how your Administration will govern, we will, absent information to the contrary, assume the worst on taxes and labor legislation. Accordingly, we will most likely pull back instead of pursuing a prudent, well planned growth pattern for our companies. That action would mean fewer jobs and a prolonged economic recession - something none of us want! Given your love for this country and the American people, I know you want things better, which is why I hope you or the members of your team will consider these ideas.

Respectfully, Mike Regan  
TranzAct Technologies