STIMULATING SMALL BUSINESS
February 12, 2009
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 economic stimulus plan, the only thing that will be stimulated is more government spending, says Terry Neese, a distinguished fellow with the National Center for Policy Analysis (NCPA).
Congress can still kick start our economy and create real jobs. One easy way is to give small businesses a payroll tax cut, says Neese:
- 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, D.C.
Another idea, says Neese, is to make health care more affordable and attainable, especially to those who have lost their job. Instead of the federal government subsidizing payments to COBRA 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 it needs to start by stimulating our small businesses, says Neese.
Source: Terry Neese, "Stimulating Small Business," Terry Neese's Blog (National Center for Policy Analysis), February 10, 2009.
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