NFIB's bogus poll

Two recent polls of businesses seem to show conflicting results:

“69% of small business owners and manufacturers say President Obama’s Executive Branch and regulatory policies have hurt American small businesses and manufacturers.”

“39% of small businesses say that President Obama is the most supportive candidate of small business, whereas only 31% say the same of Governor Romney.  And 28% are still not sure which presidential candidate is more suportive of small business.”

Sure the questions weren’t the same but the conclusions should be highly correlated.  If 69% of small businesses think that President Obama has been very bad for them, then we shouldn't expect 28% to be undecided and only 31% favoring Mitt Romney on the issue of which candidate is more supportive of small business.

So what happened?

The first finding was from a National Federation of Independent Business/National Association of Manufacturers (NFIB/NAM) poll released yesterday.  The second was from a George Washington University/Thumbtack (GWUT) poll released last week.

The NFIB/NAM poll surveyed businesses with 2 to 499 employees while the GWUT poll surveyed businesses with 1 to 499 employees.  What’s the difference?  A lot!

The GWUT poll analysis says that, “According to US Census data, 91.6% of small businesses have between one and five workers.  Another 3.8% have 6-10 workers, and 4.6% have over 11 workers.”  The authors of the GWUT poll insist that their respondents closely matched the Census data.

So how well did the NFIB/NAM poll do with keeping close to the Census data of size of businesses?  Not very well.

First, the NFIB/NAM poll didn’t include sole proprietors.  So their percentage of respondents with 5 or fewer employees (48%) was vastly underrepresented.   But while the truly small business owners were under surveyed, the NFIB/NAM poll over surveyed the larger businesses. 

The Census data, according to the GWUT poll, shows that 1.9% of businesses have 21 to 100 workers and only 0.33% of businesses have between 101 and 500 employees.  What were the percentages of NFIB/NAM respondents following into these categories?  18% had between 21 and 99 workers and 6% had 100 to 499 employees?

Here are the comparisons between the Census data and the sample used by NFIB/NAM.

Workers           Census             NFIB/NAM
1-5                   91.6%              48%
21-100             1.9%                18%
101-499           0.33%              6%

It doesn’t take an experienced researcher to conclude that the sample used in the NFIB/NAM poll was skewed in favor of larger businesses.  This alone should disqualify the poll as representing the opinions of small business owners.

But wait, there’s more.

All the respondents in the NFIB/NAM poll weren’t even business owners or presidents of the companies.  This poll included 22% of the responses that came from managers.  We have no idea who these managers were or what they managed.  It could have been the maintenance department as far as we know.  Yet the NFIB/NAM poll counts their opinions just as much as the opinion of real small business owners.

But don’t blame the polling company that conducted the survey for this pretty worthless “small business” NFIB/NAM poll…blame the organizations who called the shots on the sample, the questions and the interpretation of the results.  

The polling company’s representative was very careful in his released comments on the poll.   Bill McInturff states, “It’s clear that small business owners and manufacturers are becoming increasingly frustrated by the federal government’s inability to solve America’s economic problems.  Manufacturers place most of the blame squarely on policies coming out of Washington.” 

There you have it from the man who knows the intricate details of who was surveyed and exactly who said what in the NFIB/NAM poll.  He carefully did not say small businesses blame Washington (and by inference the President) for the economy.   He said “manufacturers”.

Obviously this poll was intended to mislead the public and politicians during the last weeks of the Presidential campaign.  The NFIB has once again shown that it really doesn’t represent the true small businesses of this country and it doesn’t mind letting the good name of small business to be misused by big business interests.  In fact, it is paid millions to do just that.  As I have said numerous times before, the NFIB is a small business pretender.

Fortunately, today a new website was launched (www.NFIBexposed.org) that will help the public, politicians and press lift up the curtain and see exactly who the NFIB really is and who’s bidding it is doing. 

Which candidate is most supportive of small business? New poll says Obama.

A new small business poll out yesterday by the George Washington University Graduate School of Political Management and Thumbtack.com showed some very interesting results.  Over 6000 small business owners completed the online survey.  You can see all the results including a state by state analysis here. 

Here are some of the highlights:

• 40% of all small business owners nationwide rate the economy and jobs as the most important factor in their choice for president. Ethics, honesty, and corruption in government is the second-most important factor for small businesses.
• Taxes are not a decisive factor for small businesses in this election, with only 3% of small businesses rating it as the most important issue in their choice for president - outranking only foreign policy and national security issues. Even among economic issues, tax policy was the top concern for less than 6% of small businesses.
• The federal budget deficit looms large in the mind of small businesses, ranking behind only unemployment and the job market in the most important economic issues that small businesses are considering in their choice for president.
• Small businesses rate gas and fuel costs as the single most burdensome cost to their businesses. And self-employment taxes were rated as more burdensome than even personal income taxes or health care costs.
• The policy most commonly mentioned by small businesses that would help their business is improved access to loans.
• 39% of small businesses say that President Obama is the most supportive candidate of small business, whereas only 31% say the same of Governor Romney. And 28% are still not sure which presidential candidate is more supportive of small business.

 

Small business poll

On regulations, taxes and money in politics…"We're not like them"

Columbia, SC—A national poll shows the opinions of small business owners differ dramatically from the advocacy of big businesses and multinational corporations.  The results of the national scientific poll were released over the past four weeks by the American Sustainable Business Council, Main Street Alliance and Small Business Majority.  The poll was conducted by Lake Research Partners between December 8, 2011 and January 4, 2012. 

"Many of the real opinions of small business owners are far different than what are portrayed by big business interests," said Frank Knapp, Jr., Vice Chair of the American Sustainable Business Council and President/CEO of the South Carolina Small Business Chamber of Commerce. 

"There are some real ‘man-bites-dog’ stories here that are particularly amazing since half of the respondents self-identified as either Republican or leaning Republican," said Knapp. 

"Small business owners do not hate regulations,” said Knapp.  “They support regulations ensuring clean air and water and those moving the country toward energy efficiency and clean energy.  And regulations are not stopping hiring as we've been hearing—lack of consumer demand is doing that.  In fact, small business owners view regulations as protecting them from big business."

“Small business owners also don’t agree with the big business mantra on taxation,” said Knapp.  “They say that big businesses and multinational corporations use loopholes to avoid paying their fair share of taxes which harms small businesses.  A majority of these owners also support higher tax rates on individual income over $1 million, even $250,000.”

“These opinions fly in the face of the rhetoric about not raising taxes on the wealthiest because they are the ‘job creators’”, said Knapp.  “Small businesses are leading the job recovery in this country and they believe the wealthiest corporations and individuals are not paying their fair share of taxes.”

“On other issues small business owners share the public’s disgust with money in politics and disapprove of the Supreme Court’s Citizens United decision,” said Knapp. “Citizens United has unleashed massive amount of money from big corporations and millionaires and billionaires into political campaigns.  Small businesses believed they have been harmed because of this.”

Below are details of the poll results:

• Small business owners see their top problem as weak customer demand, not regulations: 34 percent cited weak customer demand as the most important problem for their business, while only 14 percent named government regulations.
• On the question of what would do the most to create jobs, cutting regulations came in low on the list: the top response was eliminating incentives to move jobs overseas at 24 percent; reducing regulation was fifth at 10 percent.
• Small business owners see an important role for standards and safeguards: 78 percent believe some standards are important to protect small businesses from unfair competition, and 76 percent believe regulations on the books should be enforced.
• Small business owners see regulations as necessary for a modern economy: 93 percent agree their business can live with some regulation if it is fair, manageable and reasonable.
• Small business owners express strong support for specific rules and standards: 78 percent support rules to prevent health insurance companies from increasing rates excessively, 84 percent support food safety standards, 80 percent support product safety standards and 80 percent support disclosure and regulation of toxic materials.
• Small business owners support clean energy policies: 79 percent support ensuring clean air and water, and 61 percent support moving the country towards energy efficiency and clean energy.
• Small businesses believe in streamlining government processes: 73 percent of respondents believe we should allow for one-stop electronic filing of government paperwork.
• Nine out of ten small business owners say big corporations use loopholes to avoid taxes that small businesses have to pay: 92 percent say big corporations’ use of such loopholes is a problem. Three-quarters of owners say their small business is harmed when loopholes allow big corporations to avoid taxes.
• Nine out of ten small business owners say that U.S. multinational corporations’ use of accounting loopholes to shift their U.S. profits to their offshore subsidiaries to avoid taxes is a problem: 91 percent agree it is a problem, with 55 percent saying it’s a very serious problem. When asked what would do the most to create jobs, small business owners chose eliminating incentives to move jobs overseas.
• Small business owners say big corporations are not paying their fair share of taxes: 67 percent believe big corporations pay less than their fair share. An even bigger majority, 73 percent, says multinational corporations pay less than their fair share.
• Small business owners say millionaires pay less than their fair share in taxes: 58 percent say households whose annual income exceeds $1 million pay less than their fair share.
• Small business owners support a higher tax rate for individuals earning more than $1 million: 57 percent agree that individuals earning more than $1 million a year should pay a higher tax rate on the income over $1 million.
• Small business owners want to eliminate the “carried interest” loophole that gives hedge fund managers a big break on their taxes: 81 percent favor hedge fund managers paying taxes at the ordinary income tax rate, which currently tops out at 35 percent, rather than the 15 percent capital gains rate they pay now.
• Small business owners support ending upper-income tax cuts: 51 percent say Congress should let tax cuts on taxable household income over $250,000 a year expire (only 40 percent believe they should be extended).
• Respondents in this scientific national survey were politically diverse, with a majority Republican or independent-leaning Republican: 50 percent identified as Republican (27 percent) or independent-leaning Republican (23 percent); 32 percent as Democrat (14 percent) or independent-leaning Democratic (18 percent); and 15 percent as independent.
• Small business owners say Citizens United decision hurts small businesses:  66 percent of small business owners view Citizens United v. FEC decision as bad for small businesses; 88 percent hold negative view of money in politics overall.

Read the full poll reports at these links:

http://www.asbcouncil.org/poll_regulations.html

http://www.asbcouncil.org/uploads/Taxes_Poll_Report_FINAL.pdf

http://www.asbcouncil.org/poll_money_in_politics.html

http://www.asbcouncil.org/poll_access_to_credit.html

Poll: Small Business Owners Say Big Businesses, Millionaires Not Paying Fair Share of Taxes

90 percent of small business owners in nationwide poll say big corporations use loopholes to avoid taxes that small businesses have to pay; majority support increasing taxes on millionaires and letting high-end tax cuts expire

Washington, DC – Small business owners see corporate tax loopholes and accounting gimmicks used to shift U.S. profits offshore to avoid taxes as serious problems, according to an independent nationwide opinion poll released today. Small business owners think big corporations and the wealthy don’t pay their fair share of taxes, the poll shows. They support increasing taxes on millionaire incomes, letting high-end tax cuts expire, and closing the carried interest loophole that gives big tax breaks to hedge fund managers.

These are among the key findings summarized below of a scientific nationwide survey of small business owners released by the American Sustainable Business Council, Main Street Alliance and Small Business Majority. Click here to read the report.

“I’ve been in business 32 years, and I’m appalled at how big corporations and millionaires have shrunk their taxes,” said Lew Prince, managing partner of Vintage Vinyl, an independent music store in St. Louis, MO. “Ingrates like Amazon wouldn’t even exist without the Internet, which grew out of government research. The least that big corporations and their executives could do is pay their fair share for the roads, ports, education, research, public safety and everything else that tax dollars buy.”

“When big corporations like GE use loopholes and tax havens to avoid paying taxes, they’re starving our country of the revenues we need to invest in our communities and our future,” said Amanda Harrow, director of the Montana Small Business Alliance, a statewide network of small businesses. “Small business owners know that to build vibrant local economies we have to invest in education, infrastructure and building a healthy customer base. When big corporations that benefit from these essential investments don't do their part to support them, they’re jeopardizing our future. That’s unacceptable.”

“We need a Buffett Rule for wealthy individuals and a GE Rule for corporations,” said Scott Klinger, director of tax policy for Business for Shared Prosperity, a partner in the American Sustainable Business Council. “Warren Buffett spotlighted the madness of a tax code that lets him pay a lower rate than his secretary. Likewise, U.S. multinational corporations who shift U.S. profits offshore to avoid taxes shouldn’t be rewarded with a tax rate below Main Street employers.”

“Small businesses are the backbone of the economy, yet they feel the playing field is tilted in big businesses' favor and small firms are at a disadvantage when it comes to taxes and corporate loopholes,” said John Arensmeyer, founder and CEO of Small Business Majority. “Our economy needs to work for everyone. Policymakers need to listen to small businesses and level the economic playing field. If they do, we will all benefit from what small businesses can offer.”

Key findings from the survey include:

· Nine out of ten small business owners say big corporations use loopholes to avoid taxes that small businesses have to pay: 92 percent say big corporations’ use of such loopholes is a problem. Three-quarters of owners say their small business is harmed when loopholes allow big corporations to avoid taxes.

· Nine out of ten small business owners say that U.S. multinational corporations’ use of accounting loopholes to shift their U.S. profits to their offshore subsidiaries to avoid taxes is a problem: 91 percent agree it is a problem, with 55 percent saying it’s a very serious problem. When asked what would do the most to create jobs, small business owners chose eliminating incentives to move jobs overseas.

· Small business owners say big corporations are not paying their fair share of taxes: 67 percent believe big corporations pay less than their fair share. An even bigger majority, 73 percent, says multinational corporations pay less than their fair share.

· Small business owners say millionaires pay less than their fair share in taxes: 58 percent say households whose annual income exceeds $1 million pay less than their fair share.

· Small business owners support a higher tax rate for individuals earning more than $1 million: 57 percent agree that individuals earning more than $1 million a year should pay a higher tax rate on the income over $1 million.

· Small business owners want to eliminate the “carried interest” loophole that gives hedge fund managers a big break on their taxes: 81 percent favor hedge fund managers paying taxes at the ordinary income tax rate, which currently tops out at 35 percent, rather than the 15 percent capital gains rate they pay now.

· Small business owners support ending upper-income tax cuts: 51 percent say Congress should let tax cuts on taxable household income over $250,000 a year expire (only 40 percent believe they should be extended).

· Respondents in this scientific national survey were politically diverse, with a majority Republican or independent-leaning Republican: 50 percent identified as Republican (27 percent) or independent-leaning Republican (23 percent); 32 percent as Democrat (14 percent) or independent-leaning Democratic (18 percent); and 15 percent as independent.

For more information on these poll findings, visit:

http://www.asbcouncil.org/uploads/Taxes_Poll_Report_FINAL.pdf

http://mainstreetalliance.org/5535/poll-taxes/

http://www.smallbusinessmajority.org/small-business-research/downloads/020612_Taxes_Poll_Report.pdf

Poll results reported in this statement represent findings from a scientific national survey of 500 small business owners, commissioned by the American Sustainable Business Council, Main Street Alliance and Small Business Majority, and conducted by Lake Research Partners. The nationwide Internet survey was conducted between December 8, 2011, and January 4, 2012. It has a margin of error of +/- 4.4%.

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The American Sustainable Business Council is a powerful coalition of business networks representing over 100,000 companies and 200,000 business leaders. ASBC advocates for public policies that meet the realities of the 21st century global economy. www.asbcouncil.org

The Main Street Alliance is a national network of state-based small business coalitions. MSA creates opportunities for small business owners to speak for themselves on issues that impact their businesses and local economies. www.mainstreetalliance.org

Small Business Majority is a national nonpartisan small business advocacy organization, founded and run by small business owners, and focused on solving the biggest problems facing America’s 28 million small businesses. We conduct extensive opinion and economic research and work with small business owners, policy experts and elected officials nationwide to bring small business voices to the public policy table. www.smallbusinessmajority.org