Today Main Street Alliance (MSA) released its second political web ad of the cycle, featuring Mike Price of Price Communications in Pleasantville, NJ, an Atlantic City suburb and produced by Dan Preston of Telequest Inc. in Princeton, New Jersey, both members of the Main Street Alliance.
A poll conducted in September found nearly 60 percent of small business owners siding with Donald Trump. With less than two weeks until Election Day, Price joins fellow small business owner Kelly Conklin, owner of Foley-Waite LLC, a custom cabinet making company, in making the case against a Trump presidency.
Price, who provided services to Trump-owned properties in the 90's, warns of Trump's way of doing business and points to the devastation to the local economy caused by Mr. Trump's cut-and-run business tactics and disinvestment in the city.
"The devastation left by Trump, and his cut-and-run business ways are still hurting us here in this area, says Price. "If the way he ran his business in this area is any indication, I would be very concerned about how he would run the country."
ICYMI: Check out Kelly Conklin's video released last week.
On Friday, October 28, Main Street Alliance policy staffer Michelle Sternthal participated as a panelist in an event , sponsored by Transparency International, to discuss the harm that anonymous shell companies cause in federal contracting. The other participants included Eryn Schornick, of Global Witness, Gavin Hayman of Open Contracting Partnership, and Chip Cottrell, representing the B-Team. Over 60 individuals attended the lively and engaging event.
An anonymous company is one that does no real business but is often used to hide people's identities and move or launder money. In the United States, the I.D. needed to set up a corporation is less strict than obtaining a library card. You can set up an anonymous company easily, without having to disclose you own it and use your new company to open a bank account. It is one of the most effective smokescreens for criminal, illegal, or predatory activities.
When asked why small business owners care about beneficial ownership, Sternthal highlighted the specific impact that these anonymous companies have on small business owners. She argued that anonymously-owned companies, or those whose owners are hidden, fuel corruption, and corruption distorts markets. Shell companies win contracts on the basis of false promises, rather than legitimate competitive advantage. Sternthal cited one case where a couple created a string of anonymously owned companies and won U.S. government contracts by submitting extremely low bids. They then subcontracted to other businesses for the actual goods and services. The couple received the fees from the government but never paid the subcontractors. They shut down their anonymous company and set up new ones, frustrating law enforcement investigations and creating new opportunities to repeat the scam.
She also noted one U.S defense contractor, who used his position to secure more than $1.1 million worth of contracts for a Tennessee-based company that he secretly owned, but his wife ran under her maiden name to hide their conflict of interest. She also described how anonymous companies are used by patent trolls to file lawsuits, costing the companies they target $80 billion per year in lost profits and legal fees. These lawsuits serve to squash innovation and harm fragile start-ups. Finally, shell companies are used to shift profits to tax havens overseas, avoiding taxes in the U.S. or other countries where they actually transact productive businesses. This puts small business owners, who pay their fair share, at a competitive disadvantage.
The panelists argued for the adoption of Open Contracting Principles and requiring the collection and publication of ultimate ownership information of any company bidding for government business. To truly stop the corruption; however, they all agreed that federal legislation requiring all companies to disclose beneficial ownership information is needed.
MSA and NCLC Warn of NetSpend's Planned Evasion of CFPB Prepaid Rules to Preserve $80 Million in Overdraft Fees
The prepaid card providers efforts to circumvent CFPB rules by targeting small business owners threatens the Main Street economy
The prepaid card provider NetSpend, a division of Total System Services (TSYS), is planning changes to its prepaid card problems to evade new rules by the Consumer Financial Protection Bureau (CFPB) and avoid losing $80 million in overdraft fee revenues. “The CFPB just adopted rules to limit harmful overdraft fees on prepaid cards, and it is outrageous that NetSpend is already plotting ways to circumvent rules meant to rein in overdraft abuses,” said Lauren Saunders, associate director of the National Consumer Law Center (NCLC).
Earlier this month, the CFPB issued final rules protecting prepaid cards. The rules, which go into effect on October 1, 2017, do not prohibit overdraft fees, but prepaid cards would need to comply with ability to repay rules and could not charge fees in the first year that exceed 25% of the credit extended, among other protections.
NetSpend is the only major provider of prepaid cards that has overdraft fees. NetSpend’s cards are primarily sold through payday lenders and check cashers, and NetSpend has even higher overdraft fees on payroll cards it offers through the states of Kansas and Missouri, fast food chains, and retail stores. Overdraft fees are charged to consumers who opt in to overdraft “protection.” On its quarterly earnings call, as reported by American Banker, NetSpend announced that it expects to lose $80 to $85 million a year in overdraft fees — 10% to 12% of its current revenue — as a result of the new rules. “We now know that NetSpend was taking $80 million a year out of the pockets of the low-income consumers and workers who use prepaid and payroll cards,” Saunders stated. “Consumers turn to prepaid card to protect themselves from overdraft fees, and prepaid cards should be just that: ‘prepaid.’”
NetSpend explained that, to make up its revenue loss, it would launch several new products, including a prepaid card for small businesses and a deposit account that allows customers to write checks. Checking accounts are not covered by the new prepaid card rules, and small business cards are completely outside the protections for prepaid cards or bank account debit cards. NetSpend has said that it would offer overdraft fees on the new accounts that have checks, and it appears likely that they would be available on the small business cards as well.
“Small businesses are hurt by overdraft fees just as consumers are,” said Michelle Sternthal, deputy director of policy and government affairs for Main Street Alliance, which works to provide small businesses a voice on public policy issues. “NetSpend’s scheme exposes the need to expand our consumer protection laws to protect small business owners, which can be as small as a single person,” Sternthal explained. Advocacy groups have warned the CFPB that payday lenders are also planning on evading payday loan rules by claiming the loans are small business loans.
“We call on the CFPB to address overdraft fee abuses on all accounts, and on Congress to enact protections for our nation’s small business owners,” Saunders added.
Related National Consumer Law Center reports:
- Rating State Government Payroll Cards, November 2015
- Payday Lending Prepaid Cards: Overdraft and Junk Fees Hit Cash-Strapped Families Coming and Going, July 2015
Since 1969, the nonprofit National Consumer Law Center® (NCLC®) has worked for consumer justice and economic security for low-income and other disadvantaged people, including older adults, in the U.S. through its expertise in policy analysis and advocacy, publications, litigation, expert witness services, and training. www.nclc.org
A Main Street Alliance of New Jersey member appeals to undecided voters
“Donald Trump is a recession waiting to happen,” Kelly says. “And on November 8th you have a choice, whether we are going to go ahead on a steady course or whether we are going to plunge the country into one of its darkest eras ever. The master of disaster or a proven entity who can do the job."
Amanda Ballantyne, National Director of MSA, said Trump’s behavior and business practices inspired the group to speak up.
"Donald Trump's rhetoric throughout the election has been toxic and dangerous. His almost glib explanations for his tax avoidance and bad business practices, and shirking small business owners he works with shows a misunderstanding of what it takes to make our economy thrive," said Ballantyne. "For that reason, we can no longer sit on the sidelines. We worked with our members to produce this video expressing the concerns of real small business owners who have earned their success by doing business the right way."
Transcript of full ad:
Kelly Conklin: When my wife and I started this business in 1978 we didn't get a million dollar loan from our parents. We bought a whole bunch of old machinery and worked our tails off. We built our business dealing honestly, and we didn't do it alone. We did it with our employees from all over the world. Immigrants from Europe, South America, Central America, and refugees from Vietnam. And those folks, many of them, have gone on to own their own businesses.
We've survived any number of ups and downs in the economy over the last 38 years. Unlike Donald Trump, we couldn't take a $900 million loss, not just monetarily, but ethically or morally. Given Donald Trump's shady business practices I'd be afraid to do business with him, let alone let him run the country.
His incoherent, inconsistent, and ignorant proposals and his proposal to yet again cut taxes for the wealthiest people in the world will further plunge our economy into uncertainty. Donald Trump is a recession waiting to happen. And on November 8th you have a choice, whether we are going to go ahead on a steady course or whether we are going to plunge the country into one of it's darkest eras ever. The master of disaster or a proven entity who can do the job.
When it comes to driving local economic growth and putting small business owners in the best position to succeed, Donald Trump missed the mark.
On taxes, Mr. Trump couldn't be further from the views of Main Street small businesses. He brags of his massive and phenomenal wealth while skipping out on his taxes for decades due to manipulation of the tax code following nearly $1 billion in losses.
“Trump has exploited the tax system for decades and threatens the safety nets in place to help struggling business and families. Taxes are a cost of doing business and are essential in funding the infrastructure my business depends on”, said Doron Petersan, the owner of Sticky Fingers Sweets & Eats and Fare Well Diner Bakery Bar, in D.C. “Skipping out on your taxes year after year doesn’t make you qualified to rewrite our tax code, it qualifies you for an extended visit from the I.R.S.”
"Trump's recently released tax plan would only worsen the unfair U.S. tax system by disproportionately benefitting the highest-income earners and putting a strain on the rest of us. We need to move away from a system that has been manipulated by greed and self-indulgence to create a tax code that levels the playing field, said Matt Birong, the owner of 3 Squares Café in Vergennes, Vermont.
On immigration, Mr. Trump continued to lob insults calling many undocumented immigrants "bad hombres" and doubling down on the need to use tax dollars (to which he does not contribute) to build a wall to keep our customers, future business owners, and innovators out.
“As an immigrant and the owner of an architecture firm, the walls I build are on homes, designed to keep families safe. We don't build walls designed to keep good people out. It's not how our country or our economy works. Trump's idea of an immigration policy would be a disaster for our country," said Francisco Garcia, the owner of The Building Workshop in San Diego.
“This country depends on a strong immigrant community. Any ‘business’ person who uses these hard-working employees to make millions, but turns on them for political gain, is no leader to fit to hold our nation's highest office," said Alma Rodriguez, the owner of Queen Bee's Art and Cultural Center.
On access to capital, Mr. Trump shrugged off Mrs. Clinton's claims that he borrowed $14 million from his father to start his business. He corrected her, stating it was ONLY $1 million. For small business owners struggling to get the capital they need to start a new business or keep their business afloat, $1 million is not a sum to be shrugged off.
"I lost my father at a young age, so getting a loan to start my business from him wasn't an option. I built my business from the ground up, the right way. By honoring my debts, investing in the community that supports me, and treating people with dignity and respect," said Ethel Taylor, the owner of Doggie Washerette in D.C. "Donald Trump could learn a thing or two from business owners like me."
On the issues facing small business owners, the businesses responsible for 2/3 of our nation's job growth, Mr. Trump struck out. Perhaps he should have formed his Small Business Advisory Council before this week.
Just three weeks before the election, the Trump Campaign forms a Small Business Advisory Council.
On Sunday, a mere three weeks ahead of the November election, the Trump Campaign announced its formation of a small business advisory council tasked with providing advice on the issues and solutions most important to small businesses.
“I think it’s great that Mr. Trump is interested in hearing from small business owners, but it's unfortunate that he is reaching out to us now, just weeks before the election,” said ReShonda Young, the owner of Popcorn Heaven in Waterloo, Iowa and Main Street Alliance Executive Committee Member. “We would have loved to help ensure his tax policy wasn’t just another giveaway to large corporations and the rich, and we would have put our foot down on his immigration stance. Instead, we have more of the same on taxes and an immigration policy that tears apart our communities and threatens our businesses.”
Mr. Trump has boasted his wealth and business acumen since entering the race last year, but he has lacked coherence on policy aimed to help small businesses. His small business tax cut was on the table, then off the table, and his immigration policy lacks even the most basic understanding of what fuels and drives our local economies.
“To the Trump Campaign, this council’s formation was probably better late than never, but to me, to real small business owners on Main Street, it shows the utter disregard he has had for us throughout his campaign and career,” said Paul Heroux, a retired painter in Orlando, Florida and Main Street Alliance National Action Committee Member. “Donald Trump made a business of screwing over small business owners, like The Paint Shop, in Doral, Florida”
Economy-boosting investments have largely been missing from Donald Trump’s policy platform, a shining example of why he should have put an advisory council together months ago. The tax breaks and regulatory lifts that motivate large corporations don’t work for Main Street. A 2015 report from Main Street Alliance, “Voices of Main Street” surveyed over 1100 business owners on the issues impacting their businesses. More than half of respondents noted customer acquisition as their most significant concern, more than double those concerned with taxes and four times the respondents that answered ‘regulations.’
“The Trump Campaign’s formation of a small business advisory council at this point in his campaign is hardly a gesture of good faith. The reality is that Mr. Trump thinks he is a business genius and that he can speak for us,” said Chris Petersen, independent family farmer and Main Street Alliance of Iowa member. “What he hasn’t realized is that the way we do business on Main Street couldn’t be further from his cut-and-run business tactics. He has a lot to learn over the next three weeks.”
Despite his big business experience, Donald Trump is out of touch with the needs of Main Street. If he prioritized small business success, he would have built our issues into his platform months ago. Instead, he offers the empty gesture of forming a small business council weeks before the election.
“I’m honestly shocked that the Trump Campaign just thought of forming a small business council, his opponent has had one for months,” said Megan Baker, co-owner of Orange Blossom Jamboree in Brooksville, Florida, and Main Street Alliance of Florida member. “Forming the council now seems more like an empty gesture than a real focus on the issues important to us. His policies are already written. His tax policy skews towards large corporations and the rich, his immigration policy is a mass deportation of members of my customer base and his position on raising the federal minimum wage won’t put more money in consumer’s pockets.”
Main Street leaders campaign to stem the tide of hateful rhetoric consuming the national political dialogue and threatening local economies
Donald Trump chose to drive a wedge between us, following a violent act of vandalism at the Orange County North Carolina GOP Headquarters. With the identity of the perpetrators still unknown and their motives unclear, Mr. Trump took to Twitter calling them “animals” who “represented Hillary Clinton and the Democrats.”
Main Street Alliance believes the actions taken in North Carolina are un-American, and so too is the dehumanizing language and swift form of social media justice deployed by Donald Trump in response. In choosing to make such a statement, Donald Trump doubled down on the vitriol and fear mongering that helped secure him the nomination, while only adding to racial and political tensions.
Name-calling and publicly casting judgment on entire groups, based upon the actions of a few, have become a cornerstone of the Trump campaign. It’s a problem Main Street Alliance leaders have taken head on during the 2016 election with the #HateHasNoBizHere campaign.
The campaign encourages small business owners to make clear statements of principles to stem violence we saw this weekend in North Carolina. Business leaders in Minneapolis started the campaign from their restaurant, Common Roots Cafe, which caters to a diverse clientele, including the nation’s largest population of Somali-Americans.
Soon, the campaign stretched across the country, with business owners from Seattle to Burlington, Vermont, taking lead. The campaign aims to shed a light on the swell of hate and fear permeating our national dialogue as dangerous and bad for businesses and our local economies.
“Just being able to say, you know, hate has no business here is a good reminder to people that they should second guess this rhetoric when they hear it. They should say ‘wait a minute, this is just not correct.’ It’s all too easy to get sucked into the angry politics and not think about what it really means,” said Diana McLeod, the owner of Tradewinds in Burlington, Vermont.
When a simple statement of condemnation and gratitude towards law enforcement conducting the investigation would have sufficed, Donald Trump resorted to insults and blame. Appearing incapable of exercising restraint, Mr. Trump once again chose to fan the flames of hatred. It’s that kind of hatred that Main Street small business owners should and will challenge at every turn, for the good of our businesses and our country.
"America must be a place where people from all nations, races and creeds seeking freedom and opportunity feel welcome and can build safe, prosperous lives for themselves and their families,” said Amanda Ballantyne, National Director of Main Street Alliance. “When politicians and pundits target people in our communities for political gain, when they fan the flames of hatred and fear, it must be met head-on with clear statements of principle from local business owners as leaders in their communities.”
Despite Mr. Trump’s hateful and misguided reaction, North Carolina Democrats circulated a donation page via GoFundMe that has already raised over $13,000 from more than 500 donors, with the goal of getting the office back up and running. That is the spirit of community and camaraderie that makes America great.
“As a member of the Main Street Alliance Executive Committee, I can tell you that members are deeply disturbed by the rising tide of hateful rhetoric and violence aimed at members of our community, at refugees fleeing violence, at immigrants and people of color,” said David Borris, Owner of Hel's Kitchen Catering, Illinois. “We want to make it very clear that we do not share in this hateful rhetoric, and our businesses thrive from diverse populations."
Main Street business owners Support Earned Sick and Safe Time, call Chamber-led lawsuit frivolous
The Minnesota Chamber of Commerce filed a lawsuit today taking on the recently approved ordinance to provide paid sick leave to employees of all businesses operating in the city. When presented with a diverse set of opinions from the business community, the council voted unanimously to approve the ordinance, slated to go into effect in July of 2017.
Despite hearing the will of the small business community and witnessing the unanimous support of the Council, the Minnesota Chamber has elected to take legal action in a move that further delays implementation of an ordinance critical to the success of our small and mid-sized businesses, our employees, and our city.
“The ordinance that was passed represents a compromise that was negotiated and supported by a vast majority of our community, including small businesses like us,” said Andy Pappacosta, Events Coordinator at Gandhi Mahal and Main Street Alliance of Minnesota member. “This lawsuit is being led by a select number of businesses, and does not represent many small business owners who have deep roots in our community.”
“It is no surprise that the Chamber is throwing in a last-minute legal challenge,” said Danny Schwartzman, the owner of Common Roots Cafe and Catering and Main Street Alliance of Minnesota member. “Since the beginning, they and their allies including the Downtown Council, have tried to do all they can to stop paid sick time from moving forward. They have even been hesitant to acknowledge the reality of the problem that all too many residents in Minneapolis face -- with no access to even a very basic level of paid sick time. This a public health issue, an equity issue, and an economic justice issue and is a pressing one for our community. The Chamber presents no solution beyond the idea that businesses could voluntarily provide sick pay benefits, which is suggesting exactly the system we have now that fails so many low-wage workers and is bad for our community.”
“It’s unfortunate that the City will now have to fight a frivolous lawsuit to stop implementation of earned sick and safe time, rather than investing the necessary funding for outreach and communication, and technical support for businesses, which we need” said Jason Rathe, the owner of Field Outdoor Spaces and co-chair of the Main Street Alliance of Minnesota.
“Cities across the country have passed similar sick time legislation, and we were glad to be a part of that movement,” said Kagalee “KB” Brown, the owner of Wolfpack Promotionals and co-chair of the Main Street Alliance of Minnesota. “It is unfortunate the Chamber sees this as ‘unworkable and unlawful.' It’s clearly very workable, legal, and has been created to be flexible, not ‘one size fits all’.”
Main Street Alliance Applauds Treasury Department for Strong Rule to Curb Multinational Tax Avoidance
After shocking Wall Street in April with proposed rules that ultimately halted the Pfizer-Allergan inversion, the U.S. Treasury released its final rule.
The U.S. Department of Treasury on Thursday finalized a rule aimed at curbing earning stripping, an abusive practice that multinational companies use to avoid taxes. The Main Street Alliance applauds the Treasury Department for taking this critical step.
The rule aims to discourage inversions by making it more difficult for multinational companies to engage in earnings stripping--when companies load their U.S. subsidiaries with foreign debt, and impose artificially high fees and interest on the debt, to reduce their US tax burden. The Treasury’s final rule is expected to raise an additional $7.4 billion in revenue over ten years.
The US Chamber of Commerce and other large business associations strongly opposed this common-sense rule and filed a lawsuit to halt it in August. Meanwhile, the real small business owners on Main Street overwhelmingly support laws that aim to close loopholes taken advantage of by large multinationals. Main Street Alliance submitted comments in support of the rule in June.
“For too long, large corporations have exploited tax gimmicks to dodge their financial responsibility while small businesses are left to pay the tab,” said Michelle Sternthal, Deputy Director of Policy and Federal Affairs for Main Street Alliance. “This behavior, which costs an estimated $134 billion a year, not only erodes the U.S. tax base but undermines businesses who pay their fair share of taxes. Nevertheless, there is a limit to what the Executive branch can accomplish."
To truly address corporate tax loopholes, Congress must act. Main Street Alliance calls on Members of Congress to close these and other tax loopholes that enable companies to shift their profits overseas as a means of corporate tax avoidance.
CBPP Finds Trump Tax Plan Heavily Tilts Towards the Wealthy–Away from Small Business Owners and their Customer Base
The latest version of Donald Trump’s ever-changing tax plan is facing scrutiny from the Center on Budget and Public Policy and Main Street Alliance leaders. The plan, one that features across the board tax cuts, disproportionately benefits the highest-income earners, those grossing more than $1 million annually.
The self-proclaimed business genius and master of the tax code has failed to produce a tax plan that would not prompt a chain reaction of budget and service cuts, and he has ignored the most significant key to a small business owners success–customers with money to spend.
A 2015 report released by the Main Street Alliance, “Voices of Main Street,” surveyed over 1000 small business owners and found that 52% of respondents cited “more customers” as the most important key to increasing small business success. Doubling the number of respondents that said “lower taxes” and more than quadrupling the number that responded “fewer regulations.”
Tax cuts skewed towards the wealthy elite starve our communities of much-needed resources while further tilting the scales towards large corporations and the rich. What Hillary Clinton coined “Trumped up trickle-down economics” is at play in the Trump proposal, one that ignores history in favor of policy that aims to put his family and families like his in the driver seat of our economy.
Small business owners and our customers are the real economic drivers and to succeed we need a fiscally solvent tax plan that maintains essential services while proportionally distributing tax cuts across the bottom and middle tax brackets.
“To level the playing field for Main Street businesses our tax code must no longer skew in favor of large corporations and their shareholders,” said Deborah Field, the owner of Paperjam Press in Portland, Oregon, and a former corporate tax accountant. “Without holding multinational corporations accountable to pay what they owe and first providing relief to low and middle-income earners we shouldn’t begin to consider tax cuts for the rich.”
"Mr. Trump's tax breaks would deprive the government of badly needed funds for investments in infrastructure, transportation, education, and social services. The resulting budget cuts hinder the types of investments that drive local economies and put small businesses in a better position to succeed,” said Amanda Ballantyne, National Director of the Main Street Alliance. “A tax policy that works for the shops and restaurants on Main Street is one that supports our customer base and our communities. In that regard, Trump's plan falls flat."
“The vast majority of small business owners don’t support a tax system that augments their piece of the pie by cheating their fellow citizens out of theirs. When we contribute our fair share of taxes, those dollars get reinvested in our local communities,” said David Borris, the owner of Hel’s Kitchen Catering in Chicago and Main Street Alliance Executive Committee member. “Local communities that support tens of millions of small businesses nationally.”