SMALL BUSINESSES
Taxes don't necessarily punish the economy
House Speaker John Boehner's argument that increasing personal income tax rates on wealthy small-business owners will discourage them from hiring is too one-sided. If an owner decides that retaining or hiring someone will bring in more money than that person costs, it makes sense to have the employee. A small hike in taxes is only one of many considerations. The owner might even be motivated to create a way to make up for the extra expense by finding a new worker who can help boost profit. Certainly some of the extra earnings would go to government, but most of it would be retained.
Keep in mind that almost half of the wealthiest Americans are not small-business owners, so their extra taxes would not have as direct an influence on employment. True, if they have less to spend, a company could lose a customer, which in turn could affect a layoff. But taxes don't disappear down a dark hole. That money circulates. Even if it's used to reduce the national debt, it too is then spent, perhaps increasing our exports. Paying down the national debt should also reduce overall demand for borrowed money, lower interest rates, and make it easier for a business to borrow, grow and hire someone else.
JIM BARTOS, BROOKLYN PARK
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I read with interest the opinion of the president of the Minnesota Chamber of Commerce ("DFL control, and business is worried," Nov. 9).
I guess I don't share the gentleman's sense of alarm. I am the archetypical job creator: I own two businesses and employ a small crew of three hardworking individuals in one of them. We've been fortunate to have landed a really big contract that will provide pay for our employees and their families well into December. Please note that this is a seasonal business, so it's our rare fortune to be working in this late month. To a man, the crew would rather earn a paycheck than go on unemployment. They're proud that way.
Taxes have never been a hindrance to our success. I pay sales tax monthly, and what I'd like is for the Minnesota Department of Revenue to have a more user-friendly website. Please don't waste my time as I render unto Caesar.
To the new Legislature: Just please get out of our way. We're making jobs here, and the money flows. Tax us as you will, but that won't hurt if we're paid enough for the work we do.