The latest unemployment rate is 8.2 percent for June, marking the fifth straight month of slowing job growth. This persistent bad news is wearing on our job creators and sapping our entrepreneurial strength. Small businesses are pessimistic about future outlook. The latest NFIB Small Business Survey report showed that Small Business optimism is at its lowest level since October 2011.
While House Republicans are focused on jobs, the President and Congressional Democrats continue to play politics with the issue of taxes. Dividing the nation based on class envy may be effective politics, but it doesn’t address our nation’s most pressing problem – jobs.
Small businesses agree. Many of them expressed their opinion through our Committee’s interactive website, Small Biz Open Mic:
Cliff Laverty, owner of Total Radio, Inc. in Tulsa, Oklahoma said, “President Obama's proposal is going to negatively impact our ability to reinvest and grow our business. So few people outside of small business owners really understand how Chapter S Corporations are taxed and President Obama has done a masterful job of convincing the public that what we are taxed on is what we actually make. I don't know why anyone would want to be an entrepreneur in this present business climate."
Steve Piechota, owner of Netronix Integration in San Jose, California said, “Bottom line, raising our taxes means we'll quit growing, lay off people and stay under the $250K level for income. We are not the problem."
Ken Smith owner of Tracer Electronics LLC in Mt. Juliet, Tennessee said, “As a small business owner who files taxes based on bottom line company profits, I am appalled that this administration is considering additions to my already outrageous tax bill. I reinvest a good majority of my bottom line earnings to grow my business and I can't continue hiring additional employees with these heavy tax burdens. If our President passes this ludicrous tax legislation, it will cost me another 40K per year. That money could be put to better use by the company that earned it rather than the government who knows how to waste it."
Gloria Cuerbo-Caley, owner of Media Resources, Ltd. in Canton, Ohio said, “If we have to take our profits, as we have in the past, and hand them over in the form of taxation - it will force companies like mine to keep wages lower and hire less people - or lay off those working for us to compensate for the taxes. It is not in the best interest of our country."
In a stagnant economy, it makes no sense to raise taxes on anyone, especially the small businesses we need to take risks and invest in their companies. Small businesses are best suited to make the decisions that will maximize their resources to create jobs. They employ about half of all U.S. workers and account for about 70 percent of all new jobs. Everyone knows that whatever you tax more, you get less of. If the Senate Majority Leader and President had ever built a business, then they’d know this basic economic principle.
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