Week
of January 12 - 16, 2004
Welcome
to the National Dialogue on Entrepreneurship and E-News, an electronic
newsletter sponsored by the Kauffman Foundation of Kansas City for
followers of the entrepreneurial economy. Through E-News, we bring you
short summaries and analyses of various trends driving the innovation
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A Look at the Democratic Candidates
With the Presidential primary season officially kicking off this month, here is a brief look at what the contenders for the Democratic presidential nomination are saying about entrepreneurship and related economic issues.
Support for small business and entrepreneurship has not been a contentious issue in this year’s primary campaigns. Nonetheless, all of the candidates have ideas about how to stimulate the economy, develop new well-paying jobs, and support the needs of both existing and aspiring entrepreneurs. Below, we offer a quick thumbnail sketch of their announced plans to date.
Wesley Clark
http://www.clark04.com/
General Wes Clark is emphasizing his military background in this campaign, so foreign policy and national security are at the forefront of his issue agenda. Yet, Clark has a fairly detailed and comprehensive economic plan. On the business side, Clark plans to attack what he describes as “corporate welfare,” and eliminate tax breaks for firms who move jobs overseas. In terms of stimulating new firms and new jobs, Clark proposes a $10,000 job creation tax credit for firms who create new jobs here in the US. He would also expand the Manufacturing Extension Program (MEP) and allow small and medium-sized businesses to expense up to $150,000 of new investments. Much of the rest of his economic program is similar to proposals made by the Democratic Leadership Council (DLC). Clark seeks to reduce the budget deficit and repeal the tax cuts enacted by the current administration. He also proposes to expand tax benefits for working families, through expansion of the Earned Income Tax Credit program and additional tax breaks for families with children.
Howard Dean
http://www.deanforamerica.com
Former Vermont Governor Howard Dean has announced a fairly aggressive strategy to support small businesses. He proposes to create a Small Business Capital Corporation (SBCC) within the Small Business Administration (SBA). The SBCC will operate in a manner similar to Fannie Mae or Freddie Mac and issue securities with government status. Dean expects that the SBCC should be able to create $1 billion in new loans in its initial three-year operating period. SBCC will also work to create a secondary market for small business loans akin to the current markets for home mortgages. Dean’s small business plan also seeks to assist small firms facing high health insurance costs. It will subsidize the purchase of health care for firms with less than 50 employees, and also allow small business owners to purchase insurance through a Universal Health Benefits program similar to the current program used by Members of Congress. Finally, on a larger scale, Dean has proposed creation of a $100 billion Fund to Restore America. This fund will be used to stimulate new job creation through support for homeland security investments, and various infrastructure development, repair and maintenance projects.
John Edwards
http://www.johnedwards2004.com
North Carolina Senator John Edwards’ economic program shares some similarities with his fellow Democrats in his emphasis on fiscal discipline and on eliminating tax breaks that he identifies as “corporate welfare.” Edwards’s program for new job creation includes a 10% tax cut for firms that keep jobs and facilities in the US. In addition, Edwards would create Economic Revitalization Zones in communities hit by foreign competition; these zones would be eligible for special tax breaks and other forms of government support. Finally, in an effort to stimulate rural development, Edwards has proposed the Rural Economic Advancement Challenge (REACH) Fund, a plan to bring venture capital and management expertise into America’s rural communities.
Richard Gephardt
http://www.dickgephardt2004.com
Former House Minority Leader Dick Gephardt is making his second run for the Presidency this year. Gephardt’s campaign is heavily focused on issues of health care, education, and support for working families. However, Gephardt views an effective health care system as one of the best ways to stimulate the economy. His health care proposals would assist small business owners by providing a 60% refundable tax credit for health care costs. According to the campaign’s calculations, this move would double the tax break now offered to these firms. In a speech last November, Gephardt called minority economic development “the civil rights issue of the 21st century.” In an effort to support entrepreneurs of all backgrounds, Gephardt proposes to expand existing SBA programs (such as microloans and small business development centers), and increase the amount of federal contracts made available to small firms. Finally, Gephardt advocates creation of a National Development Bank that would issue bonds for state and local governments to use for infrastructure projects and to provide needed services.
John Kerry
http://www.johnkerry.com
As former Chairman and now Ranking Member of the Senate Committee on Small Business and Entrepreneurship, Senator Kerry understands the links between economic prosperity and the success of new and growing businesses. Kerry’s centerpiece program for small business is the Small Business Opportunity Fund, a $175 million initiative to expand business loan volume, support micro-enterprise, and provide gap financing for new businesses. In his tax plans, Kerry proposes to allow immediate expensing of small business technology purchases, simplify employment tax regulations, and provide tax credits for purchases of energy-efficient equipment. Kerry has also proposed ideas for helping small manufacturers. These include expansion of the MEP program, a new manufacturing skills training program, and creation of an Office of Manufacturing at the SBA. Like other candidates, Kerry has developed a health care plan targeted to small firms, providing a 50% refundable tax credit for health insurance expenses.
Dennis Kucinich
http://www.kucinich.us
Ohio Congressman Dennis Kucinich is running as a progressive Democrat and his economic agenda reflects this emphasis. The top item on his small business growth agenda is to use the anti-trust powers of the Justice Department to break up large corporate “monopolies” that take business from small firms. The cornerstone of Kucinich’s jobs program is the creation of a Federal Bank for Infrastructure Modernization, a new institution that would support $50 billion in zero-interest loans each year that could be used to rebuild crumbling infrastructure, such as schools, and to support other business and economic development activities. He also supports a Universal Health Care program, based on a single-payer model of national health insurance.
Joseph Lieberman
http://www.joe2004.com
Former Vice Presidential candidate and current Senator Joe Lieberman has developed a host of detailed and ambitious proposals for strengthening the US economy and supporting entrepreneurs. Lieberman’s small business agenda is heavily focused on supporting innovation. He proposes expanded support and tax credits for technology-related investments as well as creation of statewide Worker of the Future Centers to improve the quality and availability of training for the future workforce. Lieberman also proposes creation of NextTech, a new R&D consortium focused on advanced manufacturing technologies. NextTech would complement and expand the work of the MEP program, which Lieberman seeks to expand in terms of both funding and mission. His health care plan, MediChoice, creates a national program akin to the current programs used by federal employees. Finally, Lieberman seeks to increase investment in new business by eliminating capital gains taxes on long-term investments in stock offerings by small and medium-sized businesses.
Carol Moseley Braun
http://www.carolforpresident.com
Former Illinois Senator Carol Moseley Braun’s campaign materials do not include an explicit plan for helping small businesses or for stimulating new job growth. However, some of the contours of a Moseley Braun program seem clear from other policy priorities. Her campaign’s top priorities are creating a national single-payer health insurance system, and improving the quality of public education. She is also a strong advocate of affirmative action, and will work aggressively to support minority and women-owned businesses.
Al Sharpton
http://www.sharpton2004.org
Reverend Al Sharpton is running on a platform to ensure, in his words, “that ALL voices in our Democracy are heard loud and clear.” His campaign materials devote much attention to increasing political consciousness and to bringing more people into the political process. In terms of issues, Sharpton supports a single-payer universal health care program. He also proposes three new Constitutional amendments to guarantee the right to quality education, health care, and to ensure full and equal voting rights.
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