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. 

4 Responses to “Stimulating Small Business”

1. MBK Says:
   February 10th, 2009 at 7:52 pm

   I do not believe further tax cuts would stimulate the economy. I do not beleive that further tax cuts would benefit small businesses who cannot obtain access to working capital. Small businesses can afford to pay their taxes. However, we cannot obtain working capital to finance payrolls nor grow our businesses. The credit markets are dry. The rainmakers have retreated.

   Further cuts to taxes could prove detrimental in that some of the Federal programs that help our workers such as education loans or job training programs might be cut.

   It is unrealistic in my opinion to think that Federal tax cuts will give small businesses sufficient funds to maintain the people and other resources they need to refuel the economy. It is also unrealistic in my opinion that we can cut taxes and still maintain a safety net for severed employees whose jobs may never return.

   We need working capital financing.

2. Howard Long MD MPH Says:
   February 12th, 2009 at 11:44 am

   STIMULATOR

   How stimulate the growth of jobs,
   Revive our revenue,
   When business ends with IOUs
   And boss cannot pay you?

   Replace all federal taxes
   With retail revenue.
   Just twenty three percent retail
   Restores fed. revenue

   This FairTax booms investment flow
   And builds on bedrock, too:
   Buyers pay the same because
   Embedded taxes flew!

   To de-tax all necessity,
   Empowering poverty,
   Send Prebate, three percent, to all,
   Ensuring liberty.

   FairTax reforms substantially,
   So really shakes D.C.
   H Twenty Five enacts a boom,
   To fund the spending spree!

3. Sandy Abalos Says:
   February 12th, 2009 at 7:28 pm

   I am completely disappointed and frustrated by our Congressional leaders. The stimulus bill is an overspending package. Overspending is a huge contributing factor as to why we are in this current economic crisis. Throwing taxpayer dollars at Wall Street and big corporate America is like pouring it down the sink. If Government is serious about economic stimulus they need to get the wheels of production moving, rather than greasing the wheels of consumption. I believe that small business is the engine that can move us forward, we are the job creators and the custodian of fiscal responsibility since we ARE the shareholders. While Washington is fighting over where to spend our dollars, China is out buying up all our solar manufacturing facilites. How about us investing in alternative fuels such that we become a society of production rather than consumption. The U.S. is quickly losing ground.

4. Glenna Says:
   March 20th, 2009 at 9:04 am

   My husband and I own a company that has been in business since 1861. Obviously, we have survied a Civil War, a depression, a recession etc. But I am truly concerned that we will not survive if the leaders of our coutry continue to spend and tax as they seem intent on doing. I don’t believe that the leaders with the power want us to survive. As a samll business we part of the backbone of this country. We keep the wheels turning and provide jobs where they are needed. Not everyone can work full time or needs health insurance. Some people need or want a part-time job. I cannot contintue to provide these jobs if our business is taxed to the hilt. I thank you for the opportunity to epress my disgust over the current administrations efforts to change our counry.

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