It was the stuff of dramatic television: A too-close-to-call presidential race that, after months of turmoil and heated debate, ended up in the hands of the Supreme Court to decide. The 2000 election seemed like a once-in-a-lifetime event, but what if lightning can strike twice? Recent national polls have shown President George W. Bush in the lead, but his Democratic rival Senator John Kerry is a close second as the November 2 election nears.

That means, once again, that every vote truly counts. There are thousands of wholesalers and distributors across the country. If the group voted as a block, it could have a significant impact on the outcome of the national election.

“It is especially important in this presidential year for distributors and their employees to get out and vote,” says Bill Balek, director of legislative affairs for International Sanitary Supply Association (ISSA). “Polls show that the presidential race is extremely close and that this year’s election will be decided in 12 or so swing states where every single vote will carry great weight.”

To encourage heavy turnout in the upcoming election, ISSA has partnered with the National Association of Wholesaler-Distributors (NAW) on a non-partisan, get-out-the-vote campaign that is targeting distributors and wholesalers across the country.

To whom will distributors cast their votes? It is commonly believed that the majority of people in the distribution industry consider themselves Republicans. In fact, in a recent straw poll conducted by NAW, 81 percent of participants said they would vote for President George W. Bush in the upcoming election.

The Republican Party is considered to have more business-friendly policies; however, distributors don’t necessarily vote based on what most benefits their businesses. Instead, they base decisions on a number of key issues that they believe are important.

“I can’t say that I don’t take a look at what’s best for my business, but I typically think more globally than that.” says Richard Rasperger, general manager of Sanitary Solutions in Aurora, Colo. Rasperger tends to vote for Republicans. “In local elections I probably vote more directly related to my business, but in a national election I think more globally.”
Democrat Laurie Sewell, president of Pacifica Consulting Services in Culver City, Calif., may not agree with Rasperger on many political issues, but she does agree that voting is about what feels right personally, not what specifically benefits business.

Both Rasperger and Sewell believe that voting for what’s fundamentally right will ultimately also benefit their businesses.
“I do not believe that the two are always in conflict,” Sewell says. “My personal beliefs and ethics guide the way in which I manage my business, so in effect, I am voting for both.”

Sometimes small business owners have to vote with their pocketbooks in mind, says Phillip Chiappe, president of Advantage Janitorial Supply Co., Inc., San Jose, Calif. Although he’s a Republican, Chiappe supported a Democrat in a local election because the candidate would better serve his company.

“When the bills are paid by the business, I have to think about what’s good for the business rather than me personally,” Chiappe says. “I absolutely feel that a business is like a garden: If you don’t make it produce, you’re going to starve. Anytime I think about elections, I think about how it is going to affect my business.”

Important Issues
Clearly, two of the most pressing issues in this year’s national elections are Iraq and the war on terror. Not far behind those important matters, however, is the economy. While distributors care about international policy (both for personal and business reasons), they are often more worried about the issues that directly affect their businesses.

One of those issues is the minimum wage, a subject on which many distributors agree.

“We personally wouldn’t even start anyone at minimum wage,” says Linda Silverman, owner of Maintex Inc., City of Industry, Calif. “Minimum wage isn’t where I’d start as a minimum. If someone is working 40 hours a week, they are entitled to be able to support their family.”

What makes a minimum wage hike palatable to distributors is that everyone has to pass the costs along to their customers so no one has an advantage.

“When you raise the minimum wage you raise the price of goods and services,” Rasperger says. “It doesn’t bother me because it applies to the industry as a whole; everyone has to adapt.”

Similarly, stricter ergonomics and overtime regulations will also affect prices. Balek says if Kerry and congressional Democrats win, there will likely be more of these regulations enacted. If Republicans maintain control, expanded regulations are less likely. Regulatory issues promise to weigh heavy on distributors’ minds as they enter the polls to vote.

Another hot-button issue in this election is health care. This is an issue about which both major-party candidates have strong opinions (see sidebar, page 28). It’s also a topic that affects every business owner and his or her employees.

“Health care is a touchy issue here in California. We’ve been brutalized badly. It has gone up probably 600 percent in the past three years,” says Chiappe. He believes in small government. “I don’t need to pay for other public programs when I’m already paying through the nose for health care.”

Sewell disagrees with Chiappe’s assessment. She supports Kerry’s approach to providing affordable health care and believes Bush’s plan is unrealistic (see sidebar).

“As an example, I find the concept of a health savings account as promoted by the Republicans an interesting concept, but one which I believe will be completely ineffectual for the large majority of working-class Americans,” she says.

The reason people care so much about issues such as health care and ergonomic laws is the impact they have on taxes. For every program or regulation the government enacts, there is usually a corresponding price tag that is passed on to taxpayers, including business owners.

Democratic distributors, including Silverman and Sewell, say Bush’s tax cuts were not effective. They believe wealthier people should pay more taxes to relieve the burden on lower-income individuals. Higher taxes are worth the services they provide, they say.

“I pay a lot of taxes — there’s no doubt I pay a lot of taxes, but I benefit from a lot of services,” Silverman says. “Bush tried to reduce taxes and now we have a huge deficit and I don’t think that is helping the economy.”

ISSA representatives, however, say Bush’s tax cuts need to be made permanent to promote small-business growth.

“We believe that efforts to make these tax-relief measures permanent will be seriously eroded with a change in the administration or control of Congress,” Balek says.

Get Out And Vote
Partisan issues aside, the one thing about which everyone agrees in this election year is the importance of voting.

“I think everyone needs to vote their conscience and what they feel,” Rasperger says. “Become as educated in the process as possible, and place your vote.”

Sewell agrees. “Voting is an unbelievable privilege and right. I find it confounding that anyone would not vote in order to exercise their right and voice. As we saw in the last election, every vote truly counts.”

On the Issues

The rhetoric of the 2004 presidential race has focused largely on such key topics as terrorism and the war in Iraq. There has been much less discussion of the issues important to business, so we've rounded up the positions of the Republican (President George W. Bush) and Democratic (Sen. John Kerry) nominees on some of these matters:

George W. Bush/Dick Cheney John Kerry/John Edwards
TAXES
Many of President Bush's tax cuts are set to expire in 2005. He proposes that these reductions be made permanent, including many small-business cuts.

Wants to repeal Bush's tax cuts for Americans who make more than $200,000.
MINIMUM WAGE
Will work with Congress to study the various minimum wage proposals. Will raise the minimum wage from $5.15 to $7 an hour and index it to inflation.
JOB CREATION
Has proposed $500 million for his Jobs for the 21st Century initiative; half of the money is for community colleges to train workers for industries that are creating new jobs today.
Says spending on schools and non-oil energy sources will allow the creation of 3 million jobs in 500 days.
FOREIGN MARKETS
Recently signed into law two new free trade agreements with Chile and Singapore. He will continue to seek new markets around the world. Will work to open key export markets, including Japan and Korea.
OUTSOURCING
Believes the answer is to make American more competitive in the global marketplace, not isolate itself from it.
Wants to stop the practice of U.S. companies moving jobs offshore by preventing these companies from winning government contracts or other government incentives.
HEALTH CARE
Supports Health Savings Accounts (HSA). Proposes these additional steps to make health insurance more affordable and accessible:
  • Create Association Health Plans that allow small businesses to band together through trade groups to negotiate for lower insurance rates on behalf of their employees.
  • Offer a refundable $1,000 tax credit to lower-income Americans who purchase their own health insurance.
  • Adopt minimum standards to make the medical liability system fairer and to eliminate frivolous medical lawsuits that raise the cost of medical services.
  • Allow individuals with HSAs to deduct 100 percent of the premium for catastrophic health care coverage from their taxes.
Will create the Congressional Health Plan, an extended version of the Federal Employees Health Care Benefits Program, which currently provides insurance to 9 million federal workers including the President and members of Congress. For Americans in this health plan, he proposes:
  • Refundable tax credits of up to 50 percent of premiums for small businesses.
  • A tax credit of 75 percent of premiums to workers between jobs.
  • A tax credit of 25 percent of premiums for Americans age 55 to 64.
  • Reimbursing companies 75 percent of catastrophic claims.

Becky Mollenkamp is a Des Moines, Iowa-based freelance writer.