Going out of business: Our Troubled Economy
We hear a lot of talk about the economy improving but the fact is many people are still struggling to make ends meet. Since the recession began, many full-time jobs were replaced by part-time jobs as business struggled to stay afloat. Many people found themselves unable to support their families when jobs they had worked for years suddenly became part-time. Many people do not realize that unemployment numbers don’t count the ever-increasing number of people who can’t find full-time work so they have to work part-time.
Imagine if your job was suddenly cut to part time. How would you manage to pay your bills? This is an incredibly troubling trend and it is hugely problematic for the future of Washington State.
Small businesses provide over 40% of private jobs in our state, and are the ones hardest hit by a bad economy. As it stands now, about half of businesses fail within five years. If that wasn’t bad enough, in a 2007 State Survey the Dept of Revenue found that after a lack of financing, the top two reasons businesses failed were government regulations and taxes. If there was ever an indication that you are over-burdening small businesses, this is it.
This is not rocket science. Businesses provide people with jobs, if you make it too financially burdensome for people to keep their businesses open, they will have to make tough choices as a means of keeping their doors open; which means cutting jobs and cutting hours. So the harder you make it for people to stay in business, the fewer full time jobs there will be.
The State’s current business tax system already puts Washington Businesses at a disadvantage with other states by taxing businesses on losses they receive. For instance, if you were a store and had to sell inventory for less than you bought it for, you would still be taxed on the money you received, even though you actually lost money.
When it comes to regulations, many in the state government do not seem to understand the burden that regulations puts on small business. Complying with regulations costs money. So when the government requires businesses to foot the bill for regulations, it is essentially an unfunded mandate. That is why it is so important that we be judicious in the regulations that we employ.
Small businesses are the heart of our economy and they are being destroyed by Seattle-influenced policies of taxation and overly burdensome regulations. We have all watched the policies of down-town Seattle wreak havoc on the small businesses within their city limits, and we cannot afford to have downtown Seattle’s representation dictating the agenda for the rest of us any more. It’s time for a change.