McCain, Obama Eye Small Business

The U.S. economy relies heavily on the efforts of small business. According to figures from the U.S. Small Business Administration, they employ 50% of private sector, have generated 60% to 80% of all new jobs in the last decade and create more than half of the nonfarm private Gross Domestic Product.

Voters might wonder where the presidential candidates -- Sen. John McCain (R., Ariz.) and Sen. Barack Obama (D., Ill.) -- stand on the important issues to entrepreneurs and small businesses including government reform, health care, and taxes.

Health Care Reform

The National Federation of Independent Business (NFIB), which advocates on the behalf of small businesses, has made health care its top priority. Health care policies average 15% more expensive for small businesses than they are for larger businesses, according to NFIB. That's a big competitive disadvantage.

Worse, the present employer-based system creates a nasty side effect: "job lock." It impedes ingenuity and job growth because employees, fearful of losing health coverage or being rejected, will stay in longtime jobs. This reduces the number of people willing to take on entrepreneurial risk. It also makes it harder for small businesses to recruit and retain good employees.

Both presidential candidates suggest major reforms moving away from an employer-based system, which could be a benefit to small business.

McCain, Obama Clueless on Oil

Obama has offered a plan plan that includes portability as a major feature. He says he would boost competition among providers by offering tax credits to individuals who buy a plan through national health insurance exchanges. Small businesses would qualify for exemptions to pay into the system and get credits to cover some catastrophic costs. Furthermore, Obama would pass laws making it illegal to deny coverage to those with pre-existing conditions.

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