01/18/2013

A Letter To The President

The elections have come and gone, and the results aren't exactly what I wanted. Therefore I have decided to make an effort to become more of the process. I wrote the following letter to the President, and submitted it via the White House website.  I would encourage everyone to do the same, make your voice heard beyond election day!  http://www.whitehouse.gov/contact/submit-questions-and-comments 

Mr. President,

Congratulations on your recent re-election victory.

If I may, let me briefly tell you our story. My father started this company in 1993, with what he likes to say "a cell phone and a pick-up".  I began working for him one summer break while I was still in high school.  He made sure I was included in every meeting, which most high school kids had zero business being in.  Nonetheless, he insisted I was present and the knowledge I gained proved to be invaluable.  I have since earned the position of President, but Dad loves the business so much, I doubt he will ever retire.

We are slowly gaining some ground we've lost over the last many years. Currently we employ +/-50 people, which makes us the model of "small business".  Our company is set up as an "S" corporation which means, as you know, the taxes from the corporation flow through on Dad's personal tax return.  If extreme care is not taken when the tax structure is modified, our company will be crushed.  You see, there are two very different worlds with respect to NET dollars.  What you are allowed by law to deduct for taxes, and actual cash out the door.  The difference is, the company may show a profit, while in reality struggling to get by.  Additionally, if we were able to scratch out a profit of 250K, we could be further penalized.

Some people think just because you're an owner, or in my case the President, you must make more than enough money.  Let me tell you, it is not so.  My folks haven't taken a steady paycheck in years; additionally I took more than a 50% cut in pay, all to ensure the company would just survive.  Furthermore, the only reason we were able to take those drastic measures is because of our financial conservatism.  When times were good we saved, paid off debit, and built an emergency fund.  If we had not done so, we would have been just another statistic.

The reason the economy won’t "take off" is simple.  There is too much fear.  Fear of the unknown.  That's where you have a tremendous opportunity!  Not merely by giving speeches, but in taking action!  Actions, Mr. President, speak louder than words.  I urge you to reach across the aisle, and show a divided nation that their elected officials can truly lead the way to a successful recovery. 

Respectfully,

Chad Beito
President
Insearch Corp
8845 S Hardy Dr
Tempe, AZ 85284
Phone 480-940-0100
Fax 480-940-3338
www.insearchcorp.com

 


 

The President of the United States wrote Chad back! 

 

Dear Chad:

Thank you for writing.  I have heard from men and women across our country about America’s small businesses, and I am committed to creating an environment where these engines of job creation can grow and prosper.

When credit markets froze before I took office in 2008, small businesses felt the combined effects of diminished access to capital and falling sales.  Over the past few years, we have seen extremely difficult conditions for small businesses and the American families that depend on them.

Providing small businesses with the capital they need to grow remains a priority for keeping our recovery on track, as small businesses create two-thirds of new private sector jobs in the United States.  In September of 2010, I signed into law the Small Business Jobs Act—the most significant small business legislation in over a decade.  Through new programs like the Small Business Lending Fund and the State Small Business Credit Initiative, we are working with community banks and state capital support programs to help better serve small businesses.  In 2011, loans supported by the Small Business Administration (SBA) hit an all-time high of $30 billion, largely due to loan enhancements enacted through the Small Business Jobs Act.  And we have expanded support for Community Development Financial Institutions and micro-lending programs.

The Affordable Care Act also plays an important role in supporting small business owners and employees.  It makes small businesses with fewer than 25 employees eligible for tax credits up to 35 percent of their premium contributions for employee coverage.  Now, they no longer have to choose between hiring and health care.  In 2014, the credit will increase to up to 50 percent.  Also in 2014, small businesses with up to 100 employees will have access to state-based Small Business Health Options Program Exchanges where they can purchase affordable, quality insurance, giving them the same purchasing power as large companies.

In January 2012, on the one-year anniversary of both the White House Startup America Initiative and the private-sector Startup America Partnership, I sent a Startup America Legislative Agenda to Congress.  The Agenda will expand tax relief and unlock capital for startups and small businesses that are creating jobs.  It will also institute visa reforms that remove undue obstacles for high-skilled immigrants and recent graduates that contribute to our economic competitiveness.  To learn more, I encourage you to visitwww.WhiteHouse.gov/Economy/Business/Startup-America.

Additionally, I have asked Congress to reinstate the authority that past presidents have had to streamline the Executive Branch and create a leaner, more efficient Federal Government.  Instead of forcing small businesses to navigate the six departments and agencies that focus on business and trade, I am proposing one department, with one website, one phone number, and one mission:  helping American businesses succeed.  With this authority, we could help small businesses grow, save businesses time, and save taxpayer dollars.  In the meantime, I have elevated the SBA to a Cabinet-level agency and announced a new website called BusinessUSA—a platform that consolidates information and services from across the government into a single, integrated network for American business owners and entrepreneurs.  To learn more, please visit www.BusinessUSA.gov.

I have also called on Congress to pass more tax cuts—in addition to the 17 small business tax cuts I have already signed into law—that put money back in the hands of working families and provide a boost to goods and services purchased from small businesses.  But I will not wait for Congress to act to help out small employers.  The SBA is moving forward with a $1 billion Early Stage Innovation Fund targeting early-stage small businesses seeking capital.  Moreover, the SBA is working closely with the private sector on the Supplier Connection initiative, which links small businesses with commercial supply chain opportunities—15 companies with $300 billion in purchasing power have already committed.

To ensure our economy is built to last while upholding our commitment to our Nation’s heroes, I have expanded entrepreneurship training opportunities for service members and veterans who want to start businesses.  In August 2011, my Administration established a 2-day course in entrepreneurship, and the SBA also offers an 8-week online training program that teaches the fundamentals of small business ownership to more than 10,000 veterans every year.

I will continue to do everything in my power to ensure America remains the best place on earth to turn a great idea into a successful business.  I encourage you to take advantage of the on-the-ground counseling resources available through SBA District Offices, a local Small Business Development Center, or Women’s Business Center.  We have provided funding for those organizations to help businesses connect with the resources they need.  You can also learn more about assistance available in your area or securing Government loans or grants by calling the SBA at 1-800-827-5722, or by visiting www.SBA.gov.

Thank you, again, for writing.

Sincerely,

Barack Obama