From John H. Clark of Charlotte, in response to “Roll back rules, taxes on small business” (For the Record, July 7):
To borrow from a well-known phrase of President Reagan, “There you go again.”
Robert Luddy, in a recent Observer opinion article, and a host of conservative commentators over the past three decades have claimed U.S. businesses are being hamstrung by too high taxes and too much regulation.
Mr. Luddy cites a Job Creators Network “poll” in January 2016 which “….asked 408 small business owners to share their analyses of the current state of small businesses and the hurdles they face.” The report does not indicate if the selection was random or where the businesses were located.
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.
What Mr. Luddy fails to acknowledge is the harmful effects the Great Recession has had on small businesses that continue to suffer while the financial sector has blossomed. It was ironically the lack of effective regulation that created the environment for rampant speculation that led to the crash.
As for taxes, the current business rate has been in effect since 1990, and prior to the recession these rates didn’t hold back the economic success of small and large businesses.
The report Mr. Luddy cites names healthcare reform or Obamacare and the rise in the minimum wage as important regulations which hurt small businesses.
What is not noted is healthcare costs has been going up for years before Obamacare was enacted, and the notion that the slight increase in the minimum wage has had a greater negative impact than the Great Recession falls way short of simple common sense.
Finally, Mr. Luddy fails to mention that the report he cites states that limited access to capital for small businesses is a major factor in their sluggish recovery. Hard to get loans are a result of the Great Recession, not high taxes and burdensome regulations.