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Small-business optimism takes a tumble

Dunkelberg also noted that June’s survey did not take into account the Supreme Court’s decision to uphold the Democratic healthcare law and rule the overhaul’s mandate constitutional as a tax. NFIB was one of the plaintiffs asking the courts to overturn the law.

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The decline in small-business optimism comes as other economic indicators have also indicated a slowdown in the recovery, with the economy adding a disappointing 80,000 jobs in June.

President Obama, faced with that sluggish recovery, has said voters can help break the Washington stalemate in November’s election, and that he and the presumptive GOP nominee, Mitt Romney, have fundamentally different takes on how to improve the economy.
 
On Monday, the president also renewed his calls to allow current tax rates to rise on family income above $250,000 a year, something he said would only affect around 3 percent of small businesses.

“I want to give those 97 percent a sense of permanence,” Obama said of the other small businesses.

In all, NFIB found that only one of the 10 components in its small business index improved in June.

According to the group, almost a quarter of owners are calling weak sales their biggest issue, and the number of businesses reporting higher sales has fallen off since April.

The report also found that fewer owners were saying they had openings that were hard to fill – a shift from May and, NFIB says, a suggestion that the unemployment rate might rise.

Republicans latched onto Tuesday’s weak report, calling it a further sign that Obama’s tax proposals were off the mark.

“This is further proof that the policies being promoted from the White House simply are not encouraging our nation’s primary job creators,” Rep. Sam GravesSamuel (Sam) Bruce GravesGOP lawmaker points to Colonial Pipeline as infrastructure vulnerability Gas shortages spread to more states Republicans welcome the chance to work with Democrats on a bipartisan infrastructure bill MORE (R-Mo.), the chairman of the House Small Business Committee, said in a statement.