President Barack Obama has proposed new legislation that will allow many of the nation's wealthiest venture capitalists to avoid paying billions of dollars in federal income tax. Under the new proposal some of President Obama's top campaign contributors in the venture capital industry will be exempt from capital gains tax.
I believe President Obama will also back legislation and policy that will attempt to change the longstanding federal definition of a small business as being "independently owned." President Obama will likely back legislation or policy that will change the federal definition of a small business to include firms owned by many of the nation's wealthiest venture capitalists.
If he is successful, billions of dollars a month in federal small business contracts will be diverted from legitimate small businesses, and into the hands of mega wealthy venture capitalists.
President Obama has maintained close ties to the National Venture Capital Association (NVCA) since his days in the Illinois State Legislature. Wealthy venture capitalists were major contributors to President Obama's campaign. In February of 2009, a story in the Venture Capital Journal titled, "Real Change: New President Gets VC," boasted about the close relationship between President Obama and the venture capital industry. (http://www.vcjnews.com/story.asp?storycode=46450)
President Obama's close ties and political debt to the venture capital industry were clearly demonstrated when he appointed New York venture capitalist, and Tootsie Roll heiress Karen Mills to head the Small Business Administration (SBA). He appointed another venture capitalist, Winslow Sargeant to head the Small Business Administration Office of Advocacy. Both Mills and Sargeant were major contributors and fund raisers during Obama's Presidential campaign.
In addition to millions of dollars in contributions to President Obama, the NVCA and its members have spent millions of dollars lobbying Congress. The vast majority of venture capital industry contributions have been focused on the House and Senate small business committees. A story in AllBusiness.com described House Small Business Committee Chair Nydia Velázquez as "quarterbacking" legislation for well-heeled venture capitalists. (http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html)
In the past, the NVCA and its members have pushed for pro-venture capital loopholes under the guise of "increasing access to capital for small businesses." Nothing could be further from the truth. In reality, the true purpose of the NVCA political agenda is obviously to increase their access to billions of dollars in federal small business contracts and withdraw profits without paying taxes.
According to the U.S. Census Bureau and the Kauffman Foundation, small businesses employ over 50.2 percent of the private sector workforce, are responsible for more than 50 percent of GDP and create nearly all net new jobs. Legislation or policy that would divert federal small business funds away from American small businesses could have a significant negative impact on the national economy.
If President Obama truly wanted to increase access to capital for small businesses, he would not have allowed CIT, the nation's leading lender to small businesses and firms owned by women, minorities and veterans, to fail. If President Obama were sincere about helping small businesses, he would have kept his campaign promises to: implement the 5 percent set-aside goal for woman owned firms, restore the SBA's budget and staffing, restore the head of the SBA to a cabinet level position, and "end the diversion of federal small business contracts to corporate giants." (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
President Obama has broken every campaign promise he made to America's 27 million small business owners. Instead he has continued to allow billions of dollars a month in federal small business funds to be diverted to corporate giants around the world. His administration has tried to cover up the diversion of federal small business contacts to corporate giants by destroying data in the Federal Procurement Data System such as the "small business flag" and the "parent DUNS number." The Obama Administration is refusing to release a wide variety of information that the public can use to monitor the actual recipients of federal small business contracts. They have also refused to release reports on prime contractor compliance with federal small business goals. President Obama even refused to accept the recommendation of his own small business advisory council to end the "Comprehensive Subcontracting Plan Test Program." This program allows prime contractors to ignore federally mandated small business goals and avoid any penalties for noncompliance.
As I have said many times, the media and the American people need to quit listening to President Obama's well written and insincere speeches, and look at what he is actually doing. When you do, it becomes clear that President Barack Obama is no friend to the 27 million small businesses where most American's work. Quite the contrary, his administration has adopted numerous policies that are clearly anti-small business.
I predict that President Obama will continue to pursue legislation and policy that will allow his wealthy contributors in the venture capital industry to hijack billions of dollars in federal small business contracts and avoid paying taxes on their ill gotten gains.
Friday, May 28, 2010
Thursday, May 27, 2010
New In-depth Report Challenges Obama Small Business Track Record
FOR IMMEDIATE RELEASE
May 27, 2010
Petaluma, Calif. – The American Small Business League (ASBL) has concluded an examination and report on President Barack Obama's track record for small businesses, and uncovered a dramatic disparity between President Obama's rhetoric and his actions. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
In its report the ASBL outlines a series of major failures by the Obama Administration. These failures represent broken campaign promises and failures by the administration to recognize the needs of America's chief job creators: Small businesses.
The ASBL investigation was spurred by the administration's refusal to stop the diversion of more than $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe. Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts diverted to corporate giants like Lockheed Martin, Boeing, Dell Computer, Xerox, Office Depot, Starwood Hotels, Raytheon, General Dynamics and French giant Thales Communications.
The ASBL's report found that the Obama Administration has:
1. Failed to adopt any policies or legislation to stop the diversion of federal small business contracts to corporate giants.
2. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag" and "parent DUNS number."
3. Failed to restore the Small Business Administration's (SBA) budget and staffing to pre-Bush Administration levels.
4. Failed to implement the recommendations of his campaign's small business advisory council, which provided solutions to a wide array of small business problems.
5. Failed to stop the dismantling of minority set-aside programs. During the Obama Administration's first months the Rothe Decision virtually nullified small business programs for minorities.
6. Failed to provide assistance to major small business lender CIT during the summer of 2009.
7. Failed to allocate more than 3 percent of stimulus funds to small businesses.
8. Destroyed a decade's worth of federal contracting data used to identify fraudulent contractors.
9. Reduced the availability of documents on small business contracting programs under the Freedom of Information Act (FOIA).
10. Failed to curb widespread fraud in veteran-owned small business programs.
11. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.
12. Failed to implement the 5 percent set-aside goal for women-owned small businesses.
"If you quit listening to what he says and just look at what he's done, these are not the actions of a pro-small business president," ASBL President Lloyd Chapman said.
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Please click here to view a copy of the ASBL’s report: http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
May 27, 2010
Petaluma, Calif. – The American Small Business League (ASBL) has concluded an examination and report on President Barack Obama's track record for small businesses, and uncovered a dramatic disparity between President Obama's rhetoric and his actions. (http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf)
In its report the ASBL outlines a series of major failures by the Obama Administration. These failures represent broken campaign promises and failures by the administration to recognize the needs of America's chief job creators: Small businesses.
The ASBL investigation was spurred by the administration's refusal to stop the diversion of more than $100 billion a year in federal small business contracts to some of the largest corporations in the United States and Europe. Since 2003, more than a dozen federal investigations have uncovered billions of dollars in federal small business contracts diverted to corporate giants like Lockheed Martin, Boeing, Dell Computer, Xerox, Office Depot, Starwood Hotels, Raytheon, General Dynamics and French giant Thales Communications.
The ASBL's report found that the Obama Administration has:
1. Failed to adopt any policies or legislation to stop the diversion of federal small business contracts to corporate giants.
2. Reduced overall transparency in federal small business contracting data by eliminating fields such as the "small business flag" and "parent DUNS number."
3. Failed to restore the Small Business Administration's (SBA) budget and staffing to pre-Bush Administration levels.
4. Failed to implement the recommendations of his campaign's small business advisory council, which provided solutions to a wide array of small business problems.
5. Failed to stop the dismantling of minority set-aside programs. During the Obama Administration's first months the Rothe Decision virtually nullified small business programs for minorities.
6. Failed to provide assistance to major small business lender CIT during the summer of 2009.
7. Failed to allocate more than 3 percent of stimulus funds to small businesses.
8. Destroyed a decade's worth of federal contracting data used to identify fraudulent contractors.
9. Reduced the availability of documents on small business contracting programs under the Freedom of Information Act (FOIA).
10. Failed to curb widespread fraud in veteran-owned small business programs.
11. Failed to bring an end to the Comprehensive Subcontracting Plan Test Program, which allows prime contractors to circumvent their small business subcontracting goals.
12. Failed to implement the 5 percent set-aside goal for women-owned small businesses.
"If you quit listening to what he says and just look at what he's done, these are not the actions of a pro-small business president," ASBL President Lloyd Chapman said.
-###-
Please click here to view a copy of the ASBL’s report: http://www.asbl.com/documents/20100526_ASBL_AnalysisObamaSB.pdf
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Tuesday, May 25, 2010
Monday, May 24, 2010
Friday, May 21, 2010
Department of Energy Loses Legal Battle Over Bechtel Contracting Data
FOR IMMEDIATE RELEASE
May 21, 2010
Petaluma, Calif. - The Department of Energy (DOE) has lost a Freedom of Information lawsuit filed by the American Small Business League (ASBL). The ASBL filed the lawsuit after the DOE refused to release information regarding a $3.6 billion federal contract awarded to Bechtel Bettis Inc. The socio-economic status indicated "small business" on hundreds of millions of dollars in awards under the prime contract. (http://www.asbl.com/documents/litigation/Case_10.pdf)
The ASBL requested the information as part of an ongoing investigation into the diversion of federal small business contracts to Fortune 500 firms.
Since 2003, more than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to Fortune 500 corporations. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General described the problem as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The DOE refused to release the names of Bechtel officials overseeing the contract. Specifically, DOE withheld the name of Kimon Andreos, Manager, Procurement and Materials Management, and Lisa Smith, Small Business Program Manager. The contract was awarded by DOE Contract Specialist Anthony DeNapoli.
Section 16(D) of the Small Business Act which states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)
The ASBL intends to uncover more evidence of contracting abuses in small business programs at NASA, the DOE and the U.S. Department of Defense (DoD). The organization has launched a campaign to review all of the DOE contracts awarded to Bechtel and all of the DOE contracts that have been awarded by Mr. DeNapoli.
"We will continue to use the Freedom of Information Act to prove that the diversion of federal small business contracts to Fortune 500 firms is not miscoding, computer glitches, or honest mistakes as the government has claimed. It is clearly premeditated and deliberate," ASBL President Lloyd Chapman said. "We will prove that the Obama Administration is diverting billions of dollars a month in federal small business funds to Fortune 500 firms. We'll prove that the DOE, NASA and the Pentagon are cheating American small businesses out of billions of dollars a month in federal contracts."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
May 21, 2010
Petaluma, Calif. - The Department of Energy (DOE) has lost a Freedom of Information lawsuit filed by the American Small Business League (ASBL). The ASBL filed the lawsuit after the DOE refused to release information regarding a $3.6 billion federal contract awarded to Bechtel Bettis Inc. The socio-economic status indicated "small business" on hundreds of millions of dollars in awards under the prime contract. (http://www.asbl.com/documents/litigation/Case_10.pdf)
The ASBL requested the information as part of an ongoing investigation into the diversion of federal small business contracts to Fortune 500 firms.
Since 2003, more than a dozen federal investigations have uncovered the diversion of billions of dollars a month in federal small business contracts to Fortune 500 corporations. In Report 5-15, the Small Business Administration (SBA) Office of Inspector General described the problem as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The DOE refused to release the names of Bechtel officials overseeing the contract. Specifically, DOE withheld the name of Kimon Andreos, Manager, Procurement and Materials Management, and Lisa Smith, Small Business Program Manager. The contract was awarded by DOE Contract Specialist Anthony DeNapoli.
Section 16(D) of the Small Business Act which states, "whoever misrepresents the status of any concern or person as a 'small business concern'...to obtain for oneself or another," any prime contract or subcontract with the government shall be subject to penalties of $500,000, 10 years in prison and/or debarment from federal contracting programs. (http://www.sba.gov/regulations/sbaact/sbaact.html)
The ASBL intends to uncover more evidence of contracting abuses in small business programs at NASA, the DOE and the U.S. Department of Defense (DoD). The organization has launched a campaign to review all of the DOE contracts awarded to Bechtel and all of the DOE contracts that have been awarded by Mr. DeNapoli.
"We will continue to use the Freedom of Information Act to prove that the diversion of federal small business contracts to Fortune 500 firms is not miscoding, computer glitches, or honest mistakes as the government has claimed. It is clearly premeditated and deliberate," ASBL President Lloyd Chapman said. "We will prove that the Obama Administration is diverting billions of dollars a month in federal small business funds to Fortune 500 firms. We'll prove that the DOE, NASA and the Pentagon are cheating American small businesses out of billions of dollars a month in federal contracts."
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, May 19, 2010
Navy Sued For Refusing to Release ManTech Contracting Data
FOR IMMEDIATE RELEASE
May 19, 2010
Petaluma, Calif. – On Tuesday, May 18, the American Small Business League (ASBL) filed suit against the Navy in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after the Navy refused to release quarterly sub-contracting reports for contracts awarded to ManTech Systems Engineering. (http://www.asbl.com/documents/litigation/Case_12.pdf)
This is the 5th lawsuit filed by the ASBL under FOIA since the beginning of April, and the organization's 12 lawsuit against the government since 2004. Through its legal efforts, the ASBL has forced the release of thousands of pages of documents proving that large corporations have received billions of dollars a year in federal small business contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts actually flowing into the hands of Fortune 500 corporations and even some of the largest firms in Europe. Report 5-15, from the Small Business Administration Office of Inspector General described this issue as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The Small Business Act requires that a minimum of 23 percent of the total value of all government contracts go to small businesses. The Obama administration has failed to meet that goal. The most recent information available indicates that the administration is diverting federal small business contracts to Fortune 500 firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL plans to file a series of federal lawsuits against the Obama Administration for refusing to release documents under FOIA. The ASBL maintains that despite claims of increased transparency, the Obama Administration is refusing to release a wide range of data on small business contracting programs such as: prime contractor compliance with small business subcontracting goals, the actual names of the recipients of federal small business contracts, and the specific names of federal contracting officials that have awarded small business contracts to Fortune 500 firms.
"The information that the Obama Administration is refusing to release shows that they are diverting federal small business contracts to Fortune 500 firms. The fact that they are willing to go to federal court to withhold the data clearly shows that they have something damaging to hide. We will win like we always do," ASBL President Lloyd Chapman said.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
May 19, 2010
Petaluma, Calif. – On Tuesday, May 18, the American Small Business League (ASBL) filed suit against the Navy in Federal District Court, Northern District of California. The case was filed under the Freedom of Information Act (FOIA) after the Navy refused to release quarterly sub-contracting reports for contracts awarded to ManTech Systems Engineering. (http://www.asbl.com/documents/litigation/Case_12.pdf)
This is the 5th lawsuit filed by the ASBL under FOIA since the beginning of April, and the organization's 12 lawsuit against the government since 2004. Through its legal efforts, the ASBL has forced the release of thousands of pages of documents proving that large corporations have received billions of dollars a year in federal small business contracts.
Since 2003, more than a dozen federal investigations have uncovered billions of dollars a month in federal small business contracts actually flowing into the hands of Fortune 500 corporations and even some of the largest firms in Europe. Report 5-15, from the Small Business Administration Office of Inspector General described this issue as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The Small Business Act requires that a minimum of 23 percent of the total value of all government contracts go to small businesses. The Obama administration has failed to meet that goal. The most recent information available indicates that the administration is diverting federal small business contracts to Fortune 500 firms like: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
The ASBL plans to file a series of federal lawsuits against the Obama Administration for refusing to release documents under FOIA. The ASBL maintains that despite claims of increased transparency, the Obama Administration is refusing to release a wide range of data on small business contracting programs such as: prime contractor compliance with small business subcontracting goals, the actual names of the recipients of federal small business contracts, and the specific names of federal contracting officials that have awarded small business contracts to Fortune 500 firms.
"The information that the Obama Administration is refusing to release shows that they are diverting federal small business contracts to Fortune 500 firms. The fact that they are willing to go to federal court to withhold the data clearly shows that they have something damaging to hide. We will win like we always do," ASBL President Lloyd Chapman said.
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, May 5, 2010
Schwarzenegger Won't Back Bill to Bring Jobs and Contracts to California
FOR IMMEDIATE RELEASE
May 5, 2010
Petaluma, Calif. – Governor Arnold Schwarzenegger has refused to back H.R. 2568, the Fairness and Transparency in Contracting Act, which would bring billions of dollars in additional federal contracts and thousands of jobs to the State of California. The Governor's office originally pledged to back the bill once it was introduced into Congress, but has since broken its promise.
The bill was originally drafted by the Petaluma, California based American Small Business League (ASBL) to stop the diversion of federal small business contracts to Fortune 500 firms and other large businesses. H.R. 2568 was introduced into the U.S. House of Representatives in May of 2009. It currently has 24 co-sponsors, including 5 members of the California delegation, as well as the support of major chambers of commerce and business organizations across the state and nation.
Since 2003, over a dozen federal investigations have found billions of dollars a month in federal contracts earmarked for small businesses have actually been diverted to Fortune 500 firms and even some of the largest firms in Europe and Asia. Large recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
In March of 2005, the Small Business Administration (SBA) Office of Inspector General referred to the diversion of federal small business contracts to large corporations as, "one of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
H.R. 2568 would prevent federal agencies from continuing to divert small business contracts to Fortune 500 firms. The ASBL estimates that the bill's passage could create between 400,000 and 500,000 new jobs and provide California's small businesses with over $50 billion in additional contracts over the next 5 years.
"I am really disappointed in Governor Schwarzenegger's refusal to back this bill. This legislation would do more to direct federal infrastructure spending to small businesses in California than any other legislation proposed to date," ASBL President Lloyd Chapman said. "I would be willing to bet that 99.99% of Californians would agree that Fortune 500 firms should not be allowed to hijack federal contracts intended for small businesses. California is having serious financial problems and this is a great solution that would bring money and jobs to the state. "
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
May 5, 2010
Petaluma, Calif. – Governor Arnold Schwarzenegger has refused to back H.R. 2568, the Fairness and Transparency in Contracting Act, which would bring billions of dollars in additional federal contracts and thousands of jobs to the State of California. The Governor's office originally pledged to back the bill once it was introduced into Congress, but has since broken its promise.
The bill was originally drafted by the Petaluma, California based American Small Business League (ASBL) to stop the diversion of federal small business contracts to Fortune 500 firms and other large businesses. H.R. 2568 was introduced into the U.S. House of Representatives in May of 2009. It currently has 24 co-sponsors, including 5 members of the California delegation, as well as the support of major chambers of commerce and business organizations across the state and nation.
Since 2003, over a dozen federal investigations have found billions of dollars a month in federal contracts earmarked for small businesses have actually been diverted to Fortune 500 firms and even some of the largest firms in Europe and Asia. Large recipients of federal small business contracts have included: Lockheed Martin, Boeing, Raytheon, Northrop Grumman, Dell Computer, British Aerospace (BAE), Rolls-Royce, French giant Thales Communications, Ssangyong Corporation headquartered in South Korea, and the Italian firm Finmeccanica SpA. (http://www.asbl.com/documents/20090825TopSmallBusinessContractors2008.pdf)
In March of 2005, the Small Business Administration (SBA) Office of Inspector General referred to the diversion of federal small business contracts to large corporations as, "one of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
H.R. 2568 would prevent federal agencies from continuing to divert small business contracts to Fortune 500 firms. The ASBL estimates that the bill's passage could create between 400,000 and 500,000 new jobs and provide California's small businesses with over $50 billion in additional contracts over the next 5 years.
"I am really disappointed in Governor Schwarzenegger's refusal to back this bill. This legislation would do more to direct federal infrastructure spending to small businesses in California than any other legislation proposed to date," ASBL President Lloyd Chapman said. "I would be willing to bet that 99.99% of Californians would agree that Fortune 500 firms should not be allowed to hijack federal contracts intended for small businesses. California is having serious financial problems and this is a great solution that would bring money and jobs to the state. "
-###-
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
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