By Michael
Coleman Journal
Washington Bureau The Bush and Kerry campaigns
are doing battle over small business in New
Mexico. President Bush and Republicans consider
themselves important friends of small business, citing tax cuts,
reducing bureaucratic red tape, making loans more readily available and
promoting minority business interests. But some
New Mexico businessmen and -women contend the president has neglected
that friendship. As the campaign for president winds to a finish, dozens
of New Mexico small-business owners are supporting Democrat candidate
Sen. John Kerry. These Kerry supporters said
Bush's tax relief has done little to boost their bottom line and they
are desperate for more help providing health care to
employees. They also criticized Bush for slashing
the overall U.S. Small Business Administration budget by 25 percent,
while at the same time providing tax breaks for big
business. "The current administration has, despite
rhetoric and perception to the contrary, not been a friend to small
businesses," said John Arensmeyer, president of Small Business for
America, a national political action committee that has been working to
elect Kerry. The group held a news conference in
Albuquerque on Wednesday to say that at least 100 New Mexico
small-business owners have signed on to its cause, with more joining
daily. Hector Barreto, administrator of the SBA
and a Bush appointee, said the New Mexico small-business owners
supporting Kerry are misguided in their criticism.
He said the federal government, during Bush's first term, has given more
loans to small businesses than ever, bolstered programs for Hispanic and
disadvantaged business owners, and provided a record number of federal
contracts for small business. "We will do more
loans than at any other time in 51 years," Barreto said in a telephone
interview with the Journal. "Hispanics will receive over $1 billion in
our two main loan programs this year." Barreto
said that, last year, small business received $65.5 billion in
government contracts, a figure that covers 24 percent of all federal
contracts. "The numbers don't lie," Barreto said.
"Numbers are a stubborn thing." Tina Cordova,
president of Queston Construction in Albuquerque and a member of the new
group, said she is worried that the skyrocketing federal deficit will
lead to higher interest rates that will make it more difficult for small
businesses to obtain loans for capital
improvements. "What amazes me is we continue to
run red ink in Washington and no one seems concerned about it— I am,"
Cordova said. Until recently, Cordova was the
chairmwoman of the U.S. Hispanic chamber, which endorsed Bush this
year. Sen. Jeff Bingaman, D-N.M., who attended the
New Mexico news conference announcing the goals of Small Business for
America, said Bush has given big business— not small business—
priority. New Mexico, with its relative dearth of
major, national companies, relies on small businesses to fuel its
economy, Bingaman said. "I feel very comfortable
that John Kerry will give a higher set of priorities to small business
than the president has," Bingaman said. Rep. Steve
Pearce, a New Mexico Republican and small-business owner, said the GOP
is constantly working in Congress to figure out ways to help small
business. He said the Republican-controlled House
has passed a half-dozen bills aimed at tort reform because lawsuits are
one of the main reasons small businesses fail.
Bush administration officials have said the overall SBA budget has been
reduced to deal with the reality of war and an escalating federal
deficit but key small-business programs remain in place with
funding. "We've closed no offices, discontinued no
major programs," Barreto said. One major area of
contention in this year's presidential race is the issue of whether
small businesses would be helped or hurt by Kerry's promise to repeal a
Bush tax cut for people making more than $200,000 per year. Small
Business for America contends that Bush's top-tier tax cut helped only 2
percent of small-business owners. However, Bush
contends 900,000 small-business owners would be hurt by repealing the
cut. IRS data show that 3 percent of small-business owners earn more
than $200,000 annually. He also contends his tax
cuts reduced the tax burden on 90 percent of small businesses organized
as "S" corporations, partnerships or sole proprietorships that pay taxes
at the individual rate.
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