Higher business taxes would hurt the small businesses that provide most of the new job growth.
Now that the 2008 elections are complete, it is time for our elected leaders to take a real look at problems facing all of “us” here in Maine.
During the campaigns, most running for public office said they are “for jobs.” One local politician is referred to as “one of us, working for us.” He even carries a lunch pail and drives a forklift.
Who gets included in his definition of “us?”
I have found myself wondering, “Who is against Maine jobs?” I suppose they are either corporations who ship jobs overseas for lower labor costs, less environmental regulation and higher profits, or politicians who have set a business climate or approved trade agreements in which businesses find it more profitable to seek employers and opportunities in other countries.
In reality, it is likely a combination of the two.
In recent years, 60-80 percent of new job growth has come from small business, according to the U.S. Census Bureau. The tax plan of President-elect Barack Obama was criticized during the campaign for raising taxes on small businesses with net incomes of more than $250,000 (a figure often converted into a “quarter of a million dollars” for effect.)
Small businesses are already feeling the pain of today’s business climate. Now, with the credit crisis, small businesses will find it more difficult to borrow money to purchase new equipment, invest in new technologies and hire new employees. Businesses that are able to borrow money will almost certainly pay higher interest rates that may make purchases unrealistic.
Let’s be clear, though: All businesses or corporations are not Enron or ExxonMobil. Today’s small businesses (often called corporations) provide the jobs our politicians are promising. Small businesses often provide employees with living wages, health insurance for them and their families, retirement contributions, advancement opportunities and other benefits that make the lives of their employees and families better.
Higher business taxes would only further crunch profits and make future growth slower. For small businesses in sales and retail markets, higher taxes most often only mean higher prices for their consumers.
In Maine, we often wake to the morning paper to read “mill cuts jobs,” to which it is almost guaranteed the following day that same paper will read “governor comes to mill workers aid” or “senator will be looking into alternative jobs for the displaced workers.” Rarely is a small business with 10, 15, or 20 employees ever even covered in the paper, or as it seems, entering the minds of our politicians in either Augusta or Washington.
While most of us agree on helping displaced workers and finding solutions for businesses in trouble, we should be working on ways to reduce these situations from happening in the first place. While large corporations such as financial organizations, airlines, railroads, insurance companies, and others are frequently bailed out, little is done proactively to reduce the chance of failed business. If the Maine and national business climate were better suited for long-term success, wouldn’t opportunities continue to come for all of “us” in the future?
Remember, small business has created most new jobs in recent years, not Augusta or Washington. We must ensure the climate for small business is healthy enough for continued success and real job growth.
Matthew Timberlake is vice president of Ted Berry Company Inc., a third-generation family-owned company in Livermore. E-mail matt@tedberrycompany .com.
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