Social Security and Small Business

Andrew Roth

This is such a sham. Listen to this. Two days ago, Democratic Senators Byron Dorgan and John Kerry had the temerity to claim that personal accounts would have a negative effect on small businesses. In their words, "Increased costs. Benefit cuts. More red tape. Lower profits." In an effort to make these ridiculous charges seem credible, they issued their claims through a report by the Democratic Policy Committee. Obviously the report needed to be immediately discredited for the pile of baloney that it was. But who should lead the charge? The nation's largest small business advocacy group, of course. Their press release:

Washington - Dan Danner, Executive Vice President of the National Federation of Independent Business, the nation's largest small-business advocacy group, issued the following statement today commenting on the Senate Democratic Policy Committee report, "President Bush's Social Security Privatization Plan: Benefit Cuts, Red Tape, and Increased Costs for Small Businesses." "Small-business owners cite unreasonable regulation and burdensome paperwork high on the list of concerns they face each and every day. Now, after all these years, it appears that some Democrats in Congress have heard their cry. But beware, because the devil is always in the details and looks can be deceiving. "According to the Senate Democratic Policy Committee report, President Bush's Social Security Privatization plan will result in more paperwork and increased burdens. The irony of this argument is that it's the exact same argument small-business owners use when working to stave off predominately Democratic proposals such as government-run health care, expansion of government regulation and frivolous lawsuits. "It is clear that some in Congress would rather use the challenges facing small business as a 'punch-line' in their political joke than have a serious and meaningful dialogue about the future of Social Security. If they did, and if they actually talked to small-business owners, as NFIB has been doing, they'd know that:

• Small business understands the financial problems of the Social Security system and that inaction now could mean a hefty payroll tax increase for them in the future. As far back as 1998, our research shows that at least 90 percent of our members view the problem as very serious (60 percent) or somewhat serious (32 percent),
• A March 2005 NFIB member survey shows that 71 percent believe Social Security should be reformed to allow individuals to invest in personal retirement accounts, and that
• While small-business owners will watch any plan for its potential regulatory burden, they feel strongly that reform is needed and want something done to repair the system before it is too late, and large tax hikes and benefit cuts are forced upon taxpayers. Main Street business owners know the Bush administration's record on taxes and regulation is solidly pro- small-business, and they know NFIB will scrutinize any legislative proposal for its impact on small business.

"Real problems require real solutions, not political pandering. If the claims of some Democrats are going to hold any water when it comes to Social Security, then they'll have to act accordingly when it comes to all of the other issues that threaten the profitability and prosperity of small-business owners. Otherwise, the claims of these Democrats are all wet."

Posted by Andrew Roth on June 17, 2005 3:53 PM to Social Security Choice