WELCOME TO MIDLAND TEXAS GOP

This letter below was mailed to both MN Senators by my friend, a concerned small business owner. It has been edited to protect the identity of my associate and his company so that his employees aren’t frightened off by his prediction. Our almost twenty year relationship is solidified by his highly ethical honest and caring nature. I can personally attest to his character and I know he has tried numerous times to provide health care for his employees but has been unable to afford it.

Please add your comments below and consider forwarding a link to others so we can get the word out. Obama’s Health Care Reform Bill could be the final blow to many small businesses across the nation and cause irreparable damage to our economy.

Office of Senator Al Franken                             November 11, 2009
United States Senate
Washington, D.C. 20510

Dear Honorable Senator Al Franken:

The costs proposed to be imposed on me for the new medical care plans will put me out of business!

After working 2 years for a business in rural MN, I was offered ownership of this same company (company name) in 200?. Although it required a heavy mortgage and additional heavy investment in xxxxxx compliance equipment, I acquired it. After running this company for just over six years at close to break even, the government is proposing that it will be mandatory for me to provide health care benefits for my employees. I have been trying to provide health coverage, but my company cannot afford to do so. Last year, despite having the strongest year ever, I took out just enough capital distributions to cover tax liabilities, because once again there was not enough to give myself a distribution. Preliminary data shows that this year will also show a loss, despite cutting expenses, once again preventing me from realizing a capital distribution. My salary of $66,000 is less than what I made prior to ownership.

I try to be as generous as possible to help my 50+ employees of which 15 are fulltime (this company is one of the city’s largest employers). They receive vacation time, paid time off for sick time and each may opt to contribute to a IRA (the company matches dollar for dollar up to 3% of gross) plus each of the fulltime employees has a $x0k life insurance policy. When business is slow, I try to bring in work no matter what the rate even though it might be at a loss or close to break even just to keep my employees working. I do care!

My annual payroll is estimated to be $600,000 this year (after running at over $800,000 in each of the last two years). The proposed “EXCISE TAX” would cost me $24,000 for 2009 (over $64,000 for each of the two prior years). I cannot just raise my revenue (the way government raises taxes) – my company competes with lower cost centers overseas. These foreign companies set the rates that can be competitively charged. I cannot even afford a sales manager (thus I must do this myself).

Part of the motivation for keeping this business is the value it may bring when I go to sell the company. But now I question whether it can be kept as a viable business. Even the bank has lowered my line of credit despite my excellent credit history. I don’t see a formula of activity that will increase my revenue enough to offset the additional tax expense in addition to the costs related to the increase in the minimum wage. And it certainly does not make sense for me to borrow from the bank if the company will not remain viable enough to repay any loans.

Now I need to consider shuttering the company. I have no other options. I am already squeezed and stressed enough with no reward. Now this!

I do care for my employees and do what I can for them. I need to be able to sleep at night knowing I have the funds to cover payroll and all the related taxes. I just don’t have the resources to give more than I do already.

Enough said.

Thank you for listening

Respectfully

XXXXX XXXXXXXXXX