How Do Presidential Candidates’ Agendas Stack Up for Small Business?
In American politics small business issues often take a back seat to those of many other interest groups—and this election appears to be no different. Candidates rarely mention small businesses on the campaign trail, during debates, or on their websites even though they employ half of the private sector workforce and generate roughly 70 percent of the gross national product. Nonetheless, many of the policies proposed by the presidential hopefuls would indeed have a substantial impact on the fortunes of America’s small businesses.
So, what are the most pressing issues facing small business owners, and how do the leading candidates plan on addressing them?
Health Care
Studies indicate that health care is the most important issue facing America’s small businesses today. Although all the major candidates favor reforming instead of scrapping our current employer-based health care system, there is a significant difference between the Democrats’ and Republicans’ proposals.
The leading Democratic candidates have all proposed sweeping system-wide reforms designed to ensure coverage for most or all Americans. Their proposals are strikingly similar. All are anchored in a “pay-or-play” formulation that would require employers to either provide health care to their employees or contribute to the cost of coverage. All would offer some kind of pooling mechanism for small businesses to purchase insurance; require insurance companies to provide insurance on a guaranteed issue basis; expand the Medicaid and SCHIP programs; and include detailed cost containment provisions focusing on the expanded use of medical technology and controlling prescription drug prices. Gov. Bill Richardson would also permit individuals’ aged 55 to 64 to purchase Medicare coverage.
The Democrats differ somewhat regarding the employer contribution requirement. Sen. Hillary Clinton would exempt small businesses (size unclear) and offer tax credits to those that did offer insurance. Richardson proposes contributions be made on a sliding scale based upon the size of the business (details unclear). Sen. Barack Obama has implied that he would exempt businesses under 15 employees; former Sen. John Edwards hasn’t proposed any small business exemption.
Likewise, there is some difference among the candidates on the requirement that individuals purchase health insurance—though these differences are far less stark than recent news reports have implied. Edwards and Clinton want to require all individuals to purchase insurance, and couch this requirement under the label of “affordability.” Obama would only require that children be covered; and Richardson would phase in an “individual mandate.”
The leading Republicans’ health care proposals are far more modest. Former Sen. Fred Thompson hasn’t even announced a formal plan. The other major candidates have proposed incremental expansions of insurance coverage and changes in tax policy, accompanied, in some cases, by reduced or streamlined regulations of insurance companies and expansion of Health Savings Accounts (HSAs).
