Thursday, January 29, 2009

Small Business be Damned

So how do the following benefit small business: extending the statute of limitations on harassment and other workplace incidents and increasing taxes on business?

On the first, this opens up the possibility of individuals hitting hard times and doing something litigious that they otherwise wouldn't have pursued. So Mary Jo was harassed. I feel for her. The person that did the harassing should pay. But now, she loses her job. And she has no prospects. So lets sue the former business for money. If they were to blame, she would have sued initially. But now, after all that time has passed, the evidence shows she was harassed. That doesn't automatically make the business guilty but do they have the records to show their innocence's? It's less likely as time passes that they are going to maintain those records.

On the second, many have heard the stats - only 2-3% of businesses will be effected. That doesn't sound as promising when you consider that only 5% of businesses succeed. So, we are looking at 40-60% of businesses will be effected by these taxes. And, while so many people think that their boss or CEO can afford more in taxes, consider this. For every dollar the government takes, that is one less dollar they may spend on employees or business. So what will CEO's do? Common sense says that you avoid being penalized. So you avoid expanding your business. It has no benefit for the owner/CEO/president. It only benefits those that receive the increased tax.

So what if they reduced the taxes. I know, as a business owner, that would allow me to charge less, hire more and spend more. Isn;t that what our country needs?

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