New Video Series: "The Story of Business"

SBE Council and The Public Notice released a video series today featuring four entrepreneurs who share their stories about how government actions are impacting their ability to compete and grow their businesses. The first video -- "Moving Forward in Uncertain Times" -- features Wes Garner, President of Great Lakes Calcium in Green Bay Wisconsin.



The content of this video series is compelling, and tells the story about government policy gone awry and how it undermines entrepreneurial activity, job creation and getting our economy back on a competitive, growing path.

Karen Kerrigan, President & CEO

Very Sobering on Death and Taxes

Congress and the White House persist in being oblivious to the economic negatives of the death tax -- which is thankfully gone for 2010, but is scheduled to come back from the dead in 2011, with a top tax rate of 55% (60% for some). The death tax is a negative for output, investment and jobs, for wasting resources on tax avoidance measures, for killing off or forcing the sale of businesses, and for draining dollars from the private sector.

A new Wall Street Journal report ("Estate Taxes: How to Beat the Levy That Won't Die") opens this way:

An elderly client recently asked Bruce Bettigole, an attorney with Gilmore, Rees & Carlson in Wellesley Hills, Mass., whether her children would inherit her considerable estate if she committed suicide this year.

His response: "I took a long, hard look at her, and said, 'I'm going to make believe I didn't hear that question.'"

That's scary, dreadful and sobering. This tax needs to be permanently terminated.

By the way, the reporter made the following parenthetical note in the piece:

The one-year lapse was hastily enacted in 2001 and never expected to take effect, but lawmakers failed to fix it.

That is way off target. The assumption at the time was that all of the 2001 and 2003 tax relief measures would be made permanent some time in the future. But, of course, that has not happened, and now entrepreneurs, investors, the economy and jobs are being threatened further by a huge, looming tax hike at the end of this year.

Raymond J. Keating

Chief Economist

Small Business & Entrepreneurship Council

SBE Council President & CEO Karen Kerrigan joined Jim Blasingame on his national radio show -- The Small Business Advocate -- on November 17, to help celebrate Jim's 13th year on the air. Karen is an original member of Jim's "Brain Trust," and first appeared on the show within four weeks of its debut.

Karen and Jim talked about how the environment has changed for small business over the past 13 years, and the outlook moving forward.



Karen Kerrigan, President & CEO

SBE Council Economist Reacts to CPI Numbers

Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), offered the following statement in reaction to the CPI inflation numbers released this morning by the U.S. Bureau of Labor Statistics:

"Regarding CPI inflation of 0.2 percent for October and 1.2 percent for the past year, the big question is: What do these numbers mean, if anything, for the Federal Reserve's announced 'quantitative easing' earlier this month? Keep in mind that the CPI numbers are yesterday's inflation news. The numbers offer value to the extent that they might show a trend. And quite frankly, combined with a heating up in the producer price index (PPI) over the last four months (with PPI 'inflation' running at an annualized 4.2% rate), the slightly stepped up CPI inflation annualized rate of 2.7 percent for the past four months warrants some watching.

"Indeed, there's a heck of a lot to watch and be concerned about in terms of monetary policy and the potential for future inflation. The Fed's previous opening of the monetary floodgates - particularly from September 2008 to February 2010 - and its pledge for more quantitative easing in coming months mean that rising inflation is expanding as a significant future risk.

"The Fed's hope is that easy money can ignite the economy, but that the central bank eventually can reverse course before inflation burns down the economic house. Unfortunately, history offers no evidence that the Fed is capable of such a stupendous feat. Playing with fire is always dangerous, and that's what the Fed has been doing - playing with the fires of inflation."

SBE Council Economist Thumbs Up on Letter to Bernanke

Considerable media attention has been drawn today to an "Open Letter" to Fed Chairman Ben Bernanke by various economists and other experts opposing the Fed's quantitative easing announced earlier this month.

SBE Council chief economist Raymond J. Keating noted: "This letter is right on the mark in pointing out that the Fed's planned asset purchases will do nothing in terms of boosting employment, while clearly further raising the risks of debasing the dollar and hiking inflation. It's also correct to note that changes in tax, spending and regulatory policies are needed to help get the economy moving.

"That does not mean more government spending. Nor does it mean targeted and temporary tax measures. As many of us predicted, such measures, combined with loose money, over the past three years have accomplished nothing in terms of enhancing economic growth.

"What the U.S. economy needs to boost entrepreneurship, investment, growth and job creation are government spending cuts in order to get resources out of political hands and into the private sector; substantive and permanent tax and regulatory relief to boost pro-growth incentives; free trade agreements to expand opportunity; and monetary policy refocused on price stability in order to limit future inflation woes."

Growth Without Barriers Webcast, Nov. 17 at 1:00 p.m. ET

"Post-Election Outlook: What will Congress do during the Lame Duck, and the Legislative/Business Outlook 2011"

Please join SBE Council President & CEO Karen Kerrigan, and Andrew Sherman, partner, JonesDay, for another exciting Growth Without Barriers webcast on November 17, 2010.

This COMPLIMENTARY webcast will provide an in-depth report on what the 2010 election results mean for small business; the outlook for the Lame Duck session of Congress; and the legislative and regulatory outlook for 2011. Karen and Andrew will address the status of tax policy, reforming the health care overhaul bill, regulatory activity in federal departments and agencies and what entrepreneurs can generally expect from Washington in 2011.

Five Steps You Can Take to Position Your Business for Growth in 2011: Business growth guru Andrew Sherman has been traveling the globe, and speaking extensively with business owners and experts here in the United States. He will provide his key tips and ideas to help position your business for growth in 2011.

Your Business Questions Answered: The November 17 webcast provides you with the opportunity to ask questions, in real time, to our hosts. As always, Karen and Andrew welcome your questions on any topic of your choosing. Once you link into the webcast, you can ask your question in real-time. However, please feel free to send your pre-webcast questions to mvaught@sbecouncil.org.

RSVP: Please RSVP to Mabel Vaught at mvaught@sbecouncil.org and she will send you the webcast link.

Karen and Andrew look forward to seeing you on November 17!

Karen Kerrigan, President & CEO