For Immediate Release: December 20, 2012
Contact: Joshua Welter, firstname.lastname@example.org, 206-383-1857
Small businesses blast Boehner’s ‘Plan B’
Washington, DC – The Main Street Alliance, a network of small business owners across the country, released the following statement from Don Orange – owner of Hoesly ECO Auto & Tire in Vancouver, Washington, and a steering committee member of the Main Street Alliance – on Speaker Boehner’s “Plan B” proposal being voted on in the US House tonight:
“Speaker Boehner didn’t seem to learn the lesson of the election.
“Speaker Boehner’s ‘Plan B,’ which shields the wealthy from paying their fair share of taxes while raising taxes on poor and middle class families, will not help small businesses or our economy grow.
“Speaker Boehner may claim to be trying to help small businesses by moving the threshold for ending the Bush Tax Cuts from $250,000 to $1 million. But, in reality only 1 in 33 small business owners earn more than $250,000 in net take-home pay. Those that do include hedge fund managers, partners in corporate law practices, and K Street lobbyists, not the Main Street small businesses who make up the heart of local economies across America.
“At Boehner’s new million dollar threshold, millionaires would still enjoy an average tax cut of $100,000 – more than most people make in a year. At the same time, ‘Plan B’ actually raises taxes on poor and middle class families by letting tax credits lapse for working parents and for families with children in college.
“Small businesses need investments in a strong middle class to strengthen consumer demand, not tax giveaways for the wealthy.”
Here is a short YouTube video of Don Orange speaking about why Congress needs to act on tax fairness.
As negotiations reach a fever pitch, small business owners across the Main Street Alliance network are escalating pressure on Congress to require large corporations and the wealthy to pay their fair share to help fix the economy, and to protect middle class programs like Social Security, Medicare and Medicaid that strengthen the economy and increase consumer demand.
The Main Street Alliance is a national network of state and locally based small business groups that creates opportunities for Main Street small business owners to speak for themselves on issues that impact their businesses and local economies. www.mainstreetalliance.org
Small business owners see corporate tax loopholes and accounting gimmicks used to shift U.S. profits offshore to avoid taxes as serious problems, according to independent nationwide opinion polling released on February 6. Small business owners say big corporations and the wealthy don’t pay their fair share of taxes. They support increasing taxes on millionaire incomes, allowing high-end tax cuts to expire, and closing the carried interest loophole that gives big tax breaks to hedge fund managers.
These are among the key findings of a scientific nationwide survey of small business owners commissioned by the American Sustainable Business Council, Main Street Alliance and Small Business Majority.
With Tax Day around the corner, tax policy is front and center this week. So are claims about how changes to the tax code will affect small businesses. The Main Street Alliance released a pair of new fact sheets in its "straight talk" series separating truth from fiction when it comes to small business and taxes. One fact sheet focuses on the Buffett Rule, which would ensure that taxpayers earning over $1 million a year pay a minimum effective tax rate of 30 percent. The other fact sheet focuses on corporate taxes and small business views on corporate tax contributions.
November 1: Small Businesses to Supercomm: Tax Reform Should Restore Lost Revenue, Not Reward Tax Dodgers
Click here to read the joint press release from the Main Street Alliance, Business for Shared Prosperity and the American Sustainable Business Council.
Click here to read the joint business letter to the Congressional Supercommittee.
See related quotes from Main Street Alliance leaders:
“Let me get this straight – the same corporate players that routinely use their market power to steamroll over small businesses are now asking us to foot the bill for their tax holidays?” said Aimee McQuilkin, owner of Betty’s Divine in Missoula, MT, referring to a push by the “WIN America Campaign” for a temporary or even permanent tax holiday for the return of off-shored profits. McQuilkin serves on the steering committee of the Montana Small Business Alliance, affiliated with the national Main Street Alliance network. “Enough is enough,” she added. “If you want to fly the American flag outside your corporate headquarters, you should be paying your way.”
“At a time of unprecedented long-term unemployment, a glaring need for investment in our crumbling infrastructure and an educated workforce, and a realization that some of our largest banks and Fortune 500 companies are sitting on trillions of dollars – unwilling or unable to invest and hire American workers – our government has a responsibility to raise the revenues necessary to assure our economic recovery,” said Jim Houser, owner of Hawthorne Auto Clinic in Portland, Oregon and co-chair of the Main Street Alliance of Oregon. “There’s no excuse for delay now, given the length and depth of our current economic crisis.”
On October 20, an all-star team of small business leaders from across the Main Street Alliance network made the trek to Washington, DC to represent the voice of Main Street small businesses in the nation’s capital.
Business owners came from Montana, New Jersey, New York, Oregon, and Washington to participate in meetings on Capitol Hill. In a day and a half, the team conducted close to 20 meetings with Senate and House offices, including three face to face meetings with U.S. Senators.
The group held wide-ranging conversations with congressional offices, covering topics including job creation and regulations, revenues and investment, health care, immigration reform, and fixing the housing market.
Some Hill staffers acknowledged that it was helpful – and refreshing – to hear from real small business owners back in their home states and districts, and to hear business owners with a different perspective on topics like taxes and regulations than you hear from the inside-the-beltway business lobbies. Mission accomplished!
Here’s a quick taste of some of the issues the group discussed in meetings on Capitol Hill:
Job Creation & Anti-Regulatory Attacks
Despite all the rhetoric in DC about “regulations,” what small businesses need is customers – demand – not deregulation. The focus on rolling back regulations is counterproductive in two ways. First, it distracts from the real issue, which is rebuilding the small business customer base. Second, the rules and standards that are under threat of being rolled back (financial reform, clean air, health insurance market reforms) are ones that protect small businesses and the communities they rely on from mistreatment by big corporate interests. Rolling back these standards and rules would only shift more risk and more costs onto the shoulders of small businesses.
See MSA’s 10 “dos and don’ts” for job creation
Revenues and Taxes
On revenues and taxes, Main Street Alliance small business owners stand squarely in support of efforts to raise revenues by closing corporate tax loopholes, ending the abuse of off-shore tax havens, and generally ensuring that large corporations and the wealthy are paying their dues. As MSA Executive Committee member Kelly Conklin puts it, “If you want to fly the American flag outside your corporate headquarters, you should be paying your way.” Raising revenues in these ways would generate resources for important investments in infrastructure and job creation, and it would level the playing field for small businesses (who don’t have access to things like off-shore tax havens) at the same time.
At the same time, MSA small business owners are strongly opposed to the push for a repatriation “tax holiday” for large multinational companies, or to giving big corporations a permanent tax holiday – and permanent incentive to off-shore jobs and profits – through what’s called a “territorial” tax system.
See the recent coalition letter MSA signed onto about tax reform
On health care, the MSA delegation discussed important advances in health care reform, and highlighted opportunities to continue building on health reform to maximize the benefits for small businesses.
The MSA delegation in DC also discussed the importance of a comprehensive approach to immigration reform for businesses, workers, and the economy. Enforcement-only policies like the mandatory E-Verify proposal currently in the House of Representatives would be bad for small businesses, bad for the workforce, and bad for the country’s bottom line.
See MSA’s fact sheet about the dangers of mandatory E-Verify
Fixing the Housing Market
On the importance of dealing with the mortgage crisis to create the space for consumer demand to bounce back and help drive the economic recovery, MSA’s small business owners believe more needs to be done. A newly announced program that may allow 1 to 2 million homeowners to refinance is a positive step, but with an estimated 11 million homeowners underwater in their homes, Congress and the Administration should advance proposals for mortgage modification and refinancing on a much larger scale to truly get at the problem of stifled consumer demand.
Rick Poore, a leader with MSA from Lincoln, Nebraska, had an op-ed published in The Hill for the 10 year anniversary of the Bush tax cuts on June 7. Rick's piece provides a forceful critique of the claim that the high-end Bush cuts help small business, and warns small business owners to watch out for small business identity theft - the use of false small business arguments to advance the narrow interests of big corporations and the wealthy.
For the 10 year anniversary, MSA released a fact sheet highlighting what small businesses need most: local investment to create jobs, not tax cuts for the wealthy.
We, the undersigned business owners, executives and investors, call on the President and Congress to end tax dodging and support a level playing field for business by enacting strong legislation to stop tax haven abuses. Offshore tax havens reward tax evaders, rob public coffers of needed revenue and offload taxes to responsible businesses and households.