Obama Secures Four More Years

By BEN HEINEMANN After billions of dollars spent on a campaign that would decide the direction of our government for the next four years, President Barack Obama secured another term to finish a job he says he needed another term to finish. “We have fought our way back and we know in our hearts that for the United States of America, the best is yet to come," Obama said during his victory speech in Chicago. This is an election that the franchise industry has been watching very closely, one that the International Franchise Association’s President and CEO Steve Caldeira has called “extremely competitive.” “The balance of power in Washington hangs in the air. The economy and jobs remain the central issues to Americans and economic growth will certainly be the defining issue on Election Day,” said Caldeira in a letter to IFA members. “Elections have real consequences on your bottom line, which is why IFA is dedicated to supporting pro-franchise candidates in November.” It’s clear that a majority of the candidates the IFA support are members of the Republican Party; when looking at the FranPAC 2012 Report Card, it’s clear to see a majority of the $486,200 from the 2011-2012 cycle expenditures went to Republican members of Congress. The National Republican Congressional Committee received $30,000 while the Democratic Congressional Campaign Committee received $10,000. So what does an Obama victory mean for franchising and small business? Perhaps the most important implication is that the Affordable Care Act would stay in place, an act that the IFA claims “places a massive financial burden on small businesses with the cost of providing coverage as well as administrative and compliance costs.” On the other side of the coin, Assistant to the President for Economic Policy and Principal Deputy Director of the National Economic Council Jason Furman states on his official blog that “those who claim that the law will place new burdens on small employers misunderstand and misrepresent how it will actually work.” Furman’s post goes on to outline ways the Affordable Care Act actually benefits small business, including the addition of tax credits for certain small businesses that choose to offer coverage to employees and the spurring of entrepreneurship “by giving talented workers flexibility to join a small business or startup” that guarantees health coverage, something many employees look for when considering job opportunities. Then, there is the dreaded “" target="_blank" rel="nofollowfiscal cliff,” which refers to the set expiration of many tax provisions, most notably the Bush-Era Tax Cuts. The IFA supports the permanent extension of these tax cuts; however it’s Obama’s economic policy that will determine what happens to these tax provisions, something that we can’t determine immediately. Later, Michelle Obama tweeted “if this is what the President can do in 4 years, imagine what he can do in twice the time.” And while many are hopeful that with a second term secured, the President can deliver on more of the promises he made during his campaigning, GOP members are already finding opportunity to answer that question with some blunt remarks. “Invent 7 dollar gas?” was one reply.