Beware the bearer of False Gifts!

Joe, the traveler, arrived at the car rental counter anxious to continue his journey.

"We offer a rental price that is 1/10th of our competitors." Said the smiling agent."

"That's what so stunning." responded Joe.  "What's the catch?" 

"Oh, there's no catch.  We simply offer our cars at $3/day."  

Joe reached for the contract.  Just as he got ready to sign the agreement, the door to the rental agency opened noisily.  Two brutish men escorted a business-suit clad individual into the office.  The rumpled man was pleading, "But you said it was only $3 a day, and now you want me to pay $14,000 for the rental?  I don't understand."  

The larger thug spoke, "The company policy changed while you were driving.  It's still $3/day.  But we decided to charge a penalty of $3,000 of the use of the air conditioner.  It's bad for the environment, you know."

"But that makes no sense!" pleaded the man.  

"You also hauled extra guests in your car, when you all could have taken public transportation.  You wasted gas."  

"It's not fair.  You didn't tell me!"  yelled the man, who was still attached to the two thugs.

"It's in the fine print that you signed.  Company policy changed.  And now you owe us."  

Joe turned back to the rental agent, his hand was still quivering from the display he had just witnessed.  The agent was still smiling, but her face now had the look of pure evil.  "I think I'll just grab a cab"  he said quietly as he turned from the counter.

This week, President Obama proposed a new set of business tax incentives that would provide more than $200 billion, in tax relief, for firms building or acquiring new equipment.  He's trying to jump start the ailing economy 

However, I'm reminded of the "incentive" that Obama offered to ailing banks back in 2009.  He created the Troubled Asset Relief Program that "invested" into those banks.  The government was provided preferred stock in return.   However, shortly after the banks had received the money, the Obama administration started to change the rules.  In fact, they decided to implement new laws on compensation for any bank that had taken the TARP money.  A whole slew of other "changes" were also imposed on anyone who had taken the investment.  

Over the weekend, I was visiting with a manufacturer who employs more than 200 people in his thriving firm.  He told me that he was recently considering a $5.5 million upgrade to his plant's equipment.  The new technology would allow him to be more competitive, create new jobs and grow the business.  The executive team met.  The group was unanimous that the $5.5 million expansion made great sense for the company.  

And then they scuttled the project.  Why?

In the same meeting, where the executive team applauded the strategic aspects of the project, they also discussed the current political climate of the United States and Illinois.  And they blinked.  

Obamacare, new taxes, unknown environmental regulations all combined to scuttle the expansion.  The team was too skittish over what Obama and Quinn might be conjuring up for the future, and so a dozen more new jobs have been lost.  

Like the smiling car rental agent, Obama offered enticing terms to the banks early in his administration.  A few short months later, the smirking Obama told those same banks that "I'm the only thing standing between you and the pitchforks."   

Businesses won't expand, when future risks are too great.  Obama and Quinn appear too erratic for business.  Until some level of reassurance is brought to the business community, business owners are going to walk away from the counter of "opportunity".   
 

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