There is a lot of talk in our nation’s capitol about job creation.  The President held a “jobs” summit last week.  It is clear that more needs to be done to create more jobs in the country – but if you think the answer to our economic woes will be solved by folks in Washington, DC, think again.

For all their talk of creating jobs, the Administration and Congress has done little for our small businesses – those who are actually in a position to create jobs.  More government spending doesn’t result in more jobs, just look at the so-called stimulus bill that was passed earlier this year.

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There’s good news on the economic front, according to the Women Presidents’ Organization’s annual survey.  The survey reveals that 67% of companies have increased or maintained employee salaries during this recession.   Results from the surveyed membership (membership is women driven) indicate 55% of women presidents and CEOs of multi-million dollar companies have maintained or grown their employee base.  Despite the economic downturn, 82% of these CEOs and presidents are optimistic about their company’s performance for 2010.

This year has produced some compelling numbers in financial performance:

• 31% of companies have grown and 21% are stable and have neutral performance. 
• 54% have made their business environmental friendly.
• 35% are interested in making their business environmental friendly.

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A recent Labor Department report found that the smallest of businesses accounted for a disproportionate share of job losses.  Companies that employed fewer than five workers – where 5.1% of the private sector workforce is employed – accounted for 14.5% of the job losses in the last quarter of 2008.  Since this report runs through the end of 2008, it shows the early impact of the recession on small business owners.

It is clear that most small businesses are struggling to keep their doors open during the current economic downturn.  And what are our policy makers in Washington, DC doing?  Looking at adding new mandates and costly new taxes on our small businesses – at a time when they can least afford it.

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In an attempt to stem the spending spree that has taken place this year, the Congressional Budget Office (CBO) has put forward a set of recommendations to balance the federal budget.  

Unfortunately some of the people that will take the biggest hit are working families and small business owners.

Just a few of the CBO's recommendations:

• Increase the individual income tax rates.
• Eliminate tax subsidies for child care.
• Eliminate or limit eligibility for the child tax credit.
• Require self-employed and employees to pay the same amounts in payroll taxes.

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A recent survey conducted by the National Association of Women Business Owners (NAWBO) shows more than half of its members say they have no plans to reduce employment, and nearly 25 percent say they actually plan to add jobs this year!

I have spoken to a number of NAWBO members and they tell me that they don't listen to the negative news, aggressively market their products and services, and focus on family and friends.  This is smart advice!  

Read more about women entrepreneurs and policy issues that impact their bottom line. 

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There has been a lot of talk in Washington about stimulating our economy and given the recent jobs report it is clear that something needs to be done.  But under the current proposal working its way through Congress, the only thing that would be stimulated is more government spending. 

There is still time for Congress to say no to more government spending and yes to some short term solutions that will actually kick start our economy and create real jobs.

One easy way is to give small businesses a payroll tax cut.  Taxes eat up one-third or more of a small business's income.  Reducing the tax burden will have an immediate impact on small businesses, enabling them to invest more of their capital to grow their business and send less to Washington, DC.

Another idea is to make health care more affordable and attainable, especially to those who have lost their job.  Instead of the federal government footing the bill for COBRA payments for the unemployed (billions of dollars are included in the stimulus bill to do just this), wouldn't it be better and less costly to allow people to carry their health insurance from job to job and allow small businesses to cross state lines to purchase a health care plan that works for their employees?    

If Congress is really serious about stimulating the economy they need to start by stimulating our small businesses.  Unfortunately, from what we have seen from the current proposal there is still a lot of work left to do.  You might check out this link on stimulus spending data:  http://www.readthestimulus.org/

NOTE: The U.S. Senate passed the stimulus package Tuesday by a vote of 61 – 37.  A final package will still need to be worked out between the House and Senate, voted on again by both Houses and then will go to the President for his signature. 

Is this Stimulus or Spending?  You tell me……

The Congressional Budget Office reports that only 7% of the stimulus spending (approx. $358 billion of the total) will be spent this year. By the end of 2010, only 38% will be spent. And by the end of 2011, only 67% will be spent. Here's a link to a Washington Post story about the CBO Report.

Peter Orszag (Office of Management and Budget) contradicted the CBO report, saying that three-fourths of the OVERALL stimulus package (spending + tax cuts) would hit the ground within 18 months. This is a nuanced, subtle way of saying that the TAX CUTS have a more immediate effect than the SPENDING. Here's a link to a Reuters story about Orszag's comments.

A new website: http://www.readthestimulus.org/ encourages someone to read the bill before passing it. The $825 billion stimulus package will exceed more than $1.1 trillion when adding in the interest ($300 plus billion) between 2009-2019 to pay for it.

The stimulus plan includes funding for contraceptives, family planning, Sexual Transmitted Disease prevention, and so forth. (This is NOT an economic issue nor stimulus. It IS spending.)

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