Does President Obama Really Understand Job Creation?

A lot has been said about Obama's speech last week in Virginia.    The Romney camp is claiming that the speech is a true reflection of the president's principles and core convictions.  The Obama camp is crying foul and that his, "You didn't built that" quote was simply taken out of context.

Was it?

(Click here for a link to the unedited 3:57 minute speech).

I for one, am having a hard time understanding why the president is not fully embracing his speech.  After all, wasn't it simply another rallying cry for Americans to embrace his "Fair Share Doctrine?"

He was simply reiterating a long-held belief that the wealthy should pay "a little more" because they didn't get it on their own and that businesses and corporations need to pay a little more in taxes because they would never have succeeded without the contribution of the federal government.

His "You didn't build that" comment completely supports his Fair Share Doctrine.  How exactly was it "out of context?"

Image from CS Monitor.com

Like it or not, the president said it and I truly believe that he meant every word.

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The speech struck a cord with hundreds of small business owners across the country and many are now voicing serious concern over the president's remarks.

Why all the fuss?

Because it is a reflection of the president's core ideology that the government should and needs to be even bigger and stronger---that successful businesses should not be rewarded---and that the wealthy in this country should somehow be demonized for their successes---an ideology which attacks the entrepreneurial, free market spirit in this country.

According to the US Department of Labor, 65% of all net new jobs in this country are created by small businesses.   Does the president acknowledge that the vast majority of small business owners report their income as deriving from either sole proprietorships, LLC partnerships or S Corporations?  All of which are taxed at ordinary income tax rates?

No wonder Republicans are fighting hard to reject an increase on the "wealthy."  It affects more than simply the wealthy individuals like the Mitt Romney's and the Brad Pitt's.

image from blog.smallbusinessadvocate.com

It is important to realize that the president is proposing raising taxes on the wealthy--individuals making over $250,000 a year---this means that small businesses will undoubtedly be hit.

How can this president argue that he is an advocate for the middle class if he attacks their livelihood?

Senator Paul Ryan recently went on MSBC's Morning Joe and said, "About 80% of our American businesses file their taxes as individuals.  Everybody thinks that we are just going to tax the hedge fund manager and the movie star, what you are getting is successful small businesses."

Many business leaders are voicing their deep concern over the president's remarks.

Steve Caldeira, CEO of the International Franchise Association went as far as to say that the President owes small businesses an apology.

He was interviewed by Fox Business and said, "If I am a small business owner, after all the difficult time I am going through, I now have a president saying that the federal government built my business?  He owes small businesses an apology."

(Click here to see his fascinating perspective and full 4 minute interview).

He is extremely critical of the president's proposal to increase the taxes on the "wealthy."  He does not believe that attacking small businesses will strengthen our broken economy.  Furthermore, he says that small business owners are scared.  They are facing many uphill battles: the inability to secure loans and access credit, the unforeseen and impeding costs of health care and now a possible increase in tax rates.  

Caldeira recently wrote a letter to the president and argued that small businesses feel like they are "under assault" by the administration.  He says that the president's policies are not working and that the president's efforts are actually hurting small businesses.

Caldeira is not a Mitt Romney staffer.  He is the CEO of the heart of small business development in this country---franchising.  He is openly telling the president that his approach is wrong.  Steve Caldeira is now supporting Mitt Romney.

Is the president listening?

Obama claims to be an advocate for the middle class, but his recent statements are simply a reflection that this president does not understand how the economy works or understand that true and lasting job creation does not stem from the government.

It is time for a change.

It is time for someone who understands what environment is truly needed for businesses to thrive in this country.

Go Mitt.