Friday, January 29, 2010

Small Business Financing Reality

Warren Meyer, as a small business owner, comments on “why Obama’s offer of small business financing is meaningless.”

Here is a very specific example.  We have an opportunity to invest about a half million dollars in a new operation in Texas.  Financing is available.  But in my evaluation spreadsheet, small changes in income tax rates combine with a potential 8% health care tax on wages and an unknown fuel tax increase to move the net present value by enormous amounts.  I am not going to risk a half million dollars on a 20-year investment when the government is considering so much legislation that will arbitrarily move the value of this investment.

Warren’s post is titled Economic Stimulus, though based on his analysis it could be titled “Economic Snare.”

Posted by John Venlet on 01/29 at 11:06 AM
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