Website here. I'm reprinting the letter in full, but there is more to his original post. Be sure to read the whole thing.
Dear Mr. President,
Mr. President, please allow me to introduce you to America’s small business owners. They reside in every state and town in the country. These men and women are the backbone of the communities where they live. They represent the 20% that do 80%. They are the ones who serve on school boards and hospital boards, coach Little League, lead Boy Scout troops, serve in Indian Guides and volunteer in their churches and synagogues. They pay a disproportionate share of the property taxes that build the public schools and hospitals. They give generously to local charities and United Way, buy the uniforms for the Boys & Girls Club basketball teams and make anonymous gifts to send underprivileged kids to summer camp.
You may not care about the community service and enrichment activities that mark the lives of so many small businesspeople. But did I mention that the 34 million small businesses provide 144 million jobs (75% of the jobs in this country) and generate over half of the private GDP? Since our country is in the midst of a recession that you say is “the worst economic downturn since the Great Depression,” I assume that the health of the engine that sustains employment might be of some concern to you. However, your proposed tax increases upon the “rich” will land squarely on small businesses like a ton of bricks. You see Mr. President, 66% of those who earn above $250,000 are small businessmen. I understand that you believe that business owners are rich predators who “need to give more,” but have you considered the effect of your policies upon their employees? I respectfully direct you to Boetcker’s warning that “you cannot lift up the wage earner by pulling down the wage payer.”
As a businessman facing the prospect of higher taxation, please allow me to personalize the likely effect upon my own small enterprise. First, you must understand that taxes are a direct deduction from my bottom line and capital reserve. Why is this important? Every dollar you subtract from my bottom line is a dollar I cannot use to give raises, increase benefits or add employees. Although this may appeal to your “spread the wealth” instincts, it may not be such good news to my current employees or to job-seeking college graduates. Every dollar you take from my capital reserve is a dollar I cannot invest in new property or equipment. This may satisfy your sense of “shared prosperity,” but will not be as heartwarming to my suppliers or to those hoping to market assets next year. Is this beginning to make any sense to you?
The decision to increase my taxes will of course also reduce my disposable income. This will result in fewer dollars allocated to consumption which, ironically, you say is critical to the economic recovery of the nation. Although you may be delighted that I won’t have as much discretionary money to travel, buy a condo at the beach, or remodel my home, those employed by the airlines, mortgage companies, real estate industry and the construction trades may not be as cheery. And though you may be pleased to see me mowing my own lawn and cleaning my own pool again, it may not bring as much joy to my long-time contractors, Bibiano Ortega and Gina McDaniel.
We have observed your tendency to punish your “enemies” and borne witness to your willingness to use executive power to sanction certain industries. Your unwarranted drilling moratorium that has decimated the oil and gas and service sectors in the Gulf States provides a recent example. This policy has already created more unemployment and inflicted more economic carnage on small businesses in Texas, Mississippi, Louisiana and the other gulf states than the actual oil spill could have ever done.
Finally, Mr. President, let me assure you that we have nothing in common with your friend Tony Rezko and we bear no resemblance to your benefactor George Soros. After laboring all of my adult life in the private sector, I know a thing or two about real entrepreneurs. First, we were made to innovate and risk capital to support our dreams and visions. But we will only do so when we feel that the rules of the game are fair and predictable. Secondly, we will not put our hard-earned money at risk if we feel that the portion absorbed by taxation is too great. Lastly, when we sense an animus toward us from the highest office in the land that questions our motivations, integrity and patriotism, we begin to take defensive measures, not increase our investments. I hope this letter provides you with a more accurate view of who the real small businessmen in this country are. And I hope it helps you realize the destructive consequences of your policies on the small businessmen you profess to support.
Kyle Stallings is the Managing Partner of a small oil and gas investment company in Midland, Texas and serves on the Governor’s Business Council of Texas.