January 6, 2011 by ayoung
About a year ago I wrote a postÂ regarding an initiative in Oregon to raise corporate taxes. The marketing for the ballot measure told grass roots voters (i.e. mostly non-business owners) that corporations were paying only $10 a year in corporate taxes and that it was time to make the greedy â€œcorporationsâ€ pay their fair share. Of course the bill passed and unemployment went up in Oregon. As a matter of fact, Oregon still has one of the highest rates of unemployment in the United States. So, it was great to read this morning that the tide appears to be changing on the topic of corporate taxes, at least on the federal level. The Wall Street Journal is reporting that Pres. Obama and the new Republican House of Representatives are coming together to find ways to reduce taxation on businesses. They are acknowledging how the federal tax system is killing our competitiveness around the globe and claim to be committed to fixing that.
Government players now need to put aside their constant bickering and actually find a way to bring tax relief to employers. If they can do so then promise of significant economic growth beginning this year has got some horsepower behind it.
The fact is that when you put money back into the hands of business owners they plow the money back into building their business. A recent Bloomberg poll showed that there were 297,000 new jobs created last month. 270,000 were created by companies with less than 500 employees. Of that group, over 117,000 were created by companies with less than 50 employees. This is further evidence that small business really is the engine driving America.
To read the WSJ article on lowering taxes visit http://online.wsj.com/article/SB10001424052748703675904576064052401692010.html?mod=WSJ_hp_LEFTWhatsNewsCollection
To see the Bloomberg poll go to http://noir.bloomberg.com/apps/news?pid=20601087&sid=aEh4eGZyAt1Y&pos=1