One of the most talked about items to come up in the battle between McCain and Obama, has been the subject of “Joe the Plumber.” Joe Wurzelbacher, a Plumber from Ohio, questioned Obama’s economic plan. As someone who was looking to start a small business, Obama’s plan, which involves plans for healthcare, tax cuts, and the environment, certainly will have an effect (either positively or negatively) on Joe’s life.  With this in mind, here’s a list of key points of Obama’s economic plan, and how it may affect your business.

1. Tax Cuts – Obama’s tax cuts are aimed specifically for those persons who make less than $250,000 a year. For small businesses, and people who are planning on starting one, this could seem rather disconcerting. However, according to Obama’s economic plan, people who want to start small businesses will have many options available for tax credits. Essentially, Obama doesn’t want to discourage entrepreneurship. He’d rather tax CEOs of large corporations. The fact remains though, that if you are making more than $250,000 a year, you will most likely see tax increases. Barack Obama also plans on removing all capital gains taxes for start-up businesses. Also, if Obama’s tax cuts help the middle class as much as he claims they will, then consumers should have more money to invest in luxury items and services. For Joe the Plumber, it might mean people taking care of the plumbing issues sooner, because they won’t be as financially strapped.

2. Hiring Incentives – Obama’s plan involves significant focus on creating new American jobs. Employers will be receiving tax credits, and perhaps other benefits, for hiring new employees, thereby creating new jobs. However, if you plan on starting a small business that will employ workers outside of the US, be prepared for some extra taxes. Obama’s plan is specific in trying to create incentives for US jobs. Additionally, Obama plans on being tough on fair trade, so that Americans won’t be shortchanged on goods and services.

3. Environmental Policies – It’s no secret that Obama believes that Global Warming is a real issue that needs to be addressed by the next President of the United States. As a result, Obama has come up with an extensive plan for energy and the environment. In addition to an emphasis on researching new energy producing technologies, Obama plans to put many environmentally friendly incentives for businesses into law. Businesses that engage in energy conservation will receive tax credits. Additionally, Obama will attempt to institute stricter emissions policies. What this amounts to, is that small businesses will have to pay attention to their environmental impact more so than they do now, if Obama becomes president. The idea is that the Tax Credit will help to offset any costs associated with “going green.” If you own a small business, and Obama becomes president, it’s in your best interests to become environmentally conscious.

4. Military Policies – It’s no secret that Iraq costs billions of US dollars every month. Obama’s plan for withdraw should provide a much needed decrease in military spending. However, it should be noted that Obama also plans on increasing the effort to track down the Taliban in Afghanistan. Small Businesses won’t feel this impact directly (unless they deal in military goods), but the far-reaching economic impacts could certainly affect small business loans, and other business areas.

5. The Bailout – Obama supports the government’s financial bailout just like McCain does. Obama has stated that he will review government budgets, and carry out the current bailout plan. This bailout plan affects small businesses in a variety of ways. However, the most important affect is the ability for entrepreneurs to obtain loans that are traditionally more high-risk. The government is currently coming down hard on financial institutions for giving out loans too eagerly. So, in the future, it seems like no matter who is candidate, it may be harder to get loans. In order to combat this, Obama has also considered  a plan to help entrepreneurs have low-interest loans available to them in order to cover start up costs.

6. Healthcare – Obama has been immovable on his healthcare plan. The effect on small businesses could be of concern to some. Essentially, Obama’s goal is to make healthcare more accessible and affordable for everyone. How he plans to do this is by lowering the cost that consumer’s pay by an amount over $1,000 on average. It gets muddy as to where this discount will come from. Obama will place pressure on insurance companies themselves to provide lower-cost insurance to persons. However, if the insurance companies cannot, or will not, cooperate, then the discounts may have to be picked up by the employer. Again, Obama defends this by stating that only large corporations which can afford to pay more for their employee benefits will be affected. Obama plans on making healthcare affordable for everyone, and that includes small business owners.

7. Equality – Barack Obama is a staunch supporter of equality within the work place. Essentially, this means that he will not support any company which pays a woman less than a man for the exact same job. In fact, Obama plans to take steps to help eliminate this, and other similar salary discrepancies from occurring. For many companies, this would mean a sometimes significant wage increase for their female workers. You can bet that will make a financial dent. However, for a small business owner, any new legislation concerning equal pay for women would have a nominal effect. The largest descrepencies between male and female pay occurs in large corporations, not in private businesses. In any event, Obama is a stalwart when it comes to equal pay for equal work.

Obama’s economic plan is very aggressive. It has the potential to either help the economy, or just cause more problems. According to Obama, his plan won’t hurt small business owners, but is rather designed to make large corporations pay more taxes, while dealing with greater accountability when it comes to employee benefits. Under Obama’s plan, there will be incentives, via tax credits, for companies to hire more US workers, be environmentally conscious, and provide their employees with affordable healthcare. It remains to be seen if Obama can really accomplish all he hopes to. In any case, if you’re a small business owner, don’t panic if Obama is elected. However, that doesn’t mean you can’t try to be prepared for new challenges that will face the small business owner of tomorrow.

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