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The Teller Group

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What do the 2006 election results mean for small businesses?

With the Democrats having a majority lead of 232 to 203 (just about a reversal of the previous election results) in the House of Representatives, many small business owners are wondering what that means for their livelihood. Here is a tongue-in-cheek guide to national results, the measures passed in California, and how all this relates to small businesses. Remember, the best thing about voting is receiving the right to complain afterwards :-).

Nationally: the Democrats are the majority party in the House and at least half in the Senate.

This election is not causing Wall Street to go haywire…yet. This is an indicator that either the economy will continue a slow upward path on its own or that no one realizes that elections have just occurred.
The shift in power could cause higher taxes and a minimum wage increase.
Republicans have been criticized for giving large businesses tax-cuts while small businesses suffer with rising energy costs. The Democratic Party might usher in clearer tax-cuts that will benefit small businesses directly.
The Democratic Party might just be as awful as the Republicans, or, even worse, just as good at being weaselly.
Quite a few of the Democrats voted into office have small business backgrounds or strongly advocate small businesses.
Environmental issues will probably give small businesses initiatives to become more eco-friendly.
Blue, in order to match the voting majority of the country, is now looking like the best color for your storefront, business vehicles, employee uniforms, etc.
Many people voted based on their dislike for President Bush, not on politicians’ stances on healthcare, tax-cuts and rising energy prices. Perhaps the business-minded candidates that did make it to office do not realize that small business advocacy was, like, hello? So last decade!

State-wise: California is still with the gübernator, Arnold Schwarzenegger, a somewhat liberal Republican.

His re-election might give us a chance to find out what exactly 'rebuilding California' involves besides giving speeches about it for three years.
Schwarzenegger has always fought tax-increases as well as frivolous lawsuits and has worked with employer-mandated healthcare. His bi-partisan political team addresses a variety of issues that would concern both liberals and conservatives.
Over 650,000 new jobs were created during Schwarzenegger’s tenure…created by whom? Probably small business owners. Keep up the good work, guys!
Californians voted with money in mind, hoping that the improving economy will continue under Schwarzenegger’s guidance.
Schwarzenegger has proposed to grow Californian infrastructure by building new roads, highways, and bridges—good news for construction businesses of all sizes, bad news if you like to breathe oxygen.

Measures Passed and Rejected: Pros and Cons

Pro: Gas taxes will finally go to improving roads and making transportation more pleasant for everyone. Local streets and roads will be improved, and traffic congestion will be relieved. More mobility means better business.
Con: As we all know, construction equal more heavy traffic, so things will be worse before they get better.

Pro: Clears road congestion, makes improvements on the most dangerous highways, improves air quality, and expands carpool lanes. Small business owners will make it to work alive if not on time with less stress.
Con: This is a huge bond that the next generation will have to eventually repay for the sake of jump-starting transportation improvements now.

Pro: Money will go towards repairing rundown public education facilities and increasing earthquake safety in schools. Construction businesses can rejoice and students can feel better when taking a spelling test during an earthquake.
Con: $10.4 billion is a lot of money. Will improved facilities necessarily improve the quality of education?

Pro: Measures will be taken to protect California’s drinking water in times of natural disaster. Also, vulnerable structures will be prepared to prevent flooding in attempts to avoid what happened during hurricane Katrina in Louisiana.
Con: This implies higher taxes. Also, this is bad news if you live near a levee and have always wanted a swimming pool in your backyard.

Pro: If you sell tobacco products, there will be no increase to the cost of cigarettes to prevent smokers from smoking and buying them from your business.
Con: If you sell tobacco products, there will be no increase to the cost of cigarettes to prevent smokers from smoking themselves to death, reducing your clientele.

Pro: Gas prices will not increase.
Con: Our dependency on oil will not decrease.

Pro: This shuts the door on imposing new property taxes…don’t we pay enough taxes already?
Con: It would be nice if some classrooms had textbooks.

Pro: This would have required implementation of a new tax.
Con: The government can, under very special circumstances, build a Wal-Mart on your home or small business…but we all like Wal-Mart, right?

Posted by Krish

I think they will hammer the drug compaines and cut the defense budget look for national security to be strong we still have bush in the white house so not that much will change i think they will group toghter to solve IRaq i would buy national security stocks
Posted by madhatter

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