Small Businesses Can't Afford State Property Tax
I am a small business owner. My business was created from an idea thirty-one years ago. Today, I employ 28 people and my business generates more than $5 million in annual sales. The business is profitable but earns only about 1.5 percent of sales. Over the past ten years, earnings during the most profitable year were 2.5 percent. As you might imagine there is little room for error or frivolous spending in our operations. Focus, discipline, and hard work by everyone involved make my company function.
The biggest beneficiary of my company…GOVERNMENT. The taxes we paid or generated during 2008 were $654,602.
While I earned $72,000 to sustain and grow my business, government received $654,602 from my effort. Small business is being taxed to death. The small business engine of the U.S. economy is being suffocated with taxes. Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Remove or lessen some of these taxes so I can invest more to develop jobs, grow my company and stimulate economic growth.
Unfortunately one of the consequences of high taxation is to discourage individuals from going into business. New ideas are left dormant because the obstacles to success seem too great or the reward too little. Our tax system should support individuals with new and creative ideas to develop their potential, provide jobs and create wealth. I ask you to support such a system and to oppose programs that restrict entrepreneurial spirit.
Sincerely,
Keith Stephens, President
Woodworkers Source
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Although I do not own any real estate at this time, the State Property Tax Relief provision should remain as it is and not be allowed to expire. In light of all the new developments out of Washington, D.C., and the new taxes that are going to be levied, businesses do not need any further taxes. To do so would force businesses to increase its prices, possibly lay off employees, and/or reduce employees’ hours to that of part time, thereby saving on benefits i.e. vacations, health, sick days, workman’s compensation. We could not keep our businesses open longer or add hours, as this would only increase our overhead costs.
Frank de Rosa , PhD, President. Advance Paper & Maintenance Supply, Inc.
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In spite of the Temporary Property tax relief provisions passed in 2006, I have seen my property tax payment increase over 25 percent in the last two years while the full cash value of my property has declined 43 percent. In other words, the state revenues collected for 2008 and 2009 will be based on the higher cash values from the housing bubble since it takes two years for declines in value to equate to tax liability.
By my estimate I will not see relief from taxes caused by declines in my property values until tax payments are due in 2010. We need this relief provision to be extended for this reason alone.
We are a small service business, employing and paying healthcare for five employees. We are experiencing a significant reduction in revenues and are struggling to keep our workers employed. Our business credit line has been closed by our bank. Our house which we have owned since 2005 is upside down according to our lender. We have cut back on all unnecessary expenses. The next step will be to cut salaries, hours or benefits.
Linda M. Day
Day Enterprises, Inc.
The biggest beneficiary of my company…GOVERNMENT. The taxes we paid or generated during 2008 were $654,602.
While I earned $72,000 to sustain and grow my business, government received $654,602 from my effort. Small business is being taxed to death. The small business engine of the U.S. economy is being suffocated with taxes. Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Remove or lessen some of these taxes so I can invest more to develop jobs, grow my company and stimulate economic growth.
Unfortunately one of the consequences of high taxation is to discourage individuals from going into business. New ideas are left dormant because the obstacles to success seem too great or the reward too little. Our tax system should support individuals with new and creative ideas to develop their potential, provide jobs and create wealth. I ask you to support such a system and to oppose programs that restrict entrepreneurial spirit.
Sincerely,
Keith Stephens, President
Woodworkers Source
________________________________________________________________________
Although I do not own any real estate at this time, the State Property Tax Relief provision should remain as it is and not be allowed to expire. In light of all the new developments out of Washington, D.C., and the new taxes that are going to be levied, businesses do not need any further taxes. To do so would force businesses to increase its prices, possibly lay off employees, and/or reduce employees’ hours to that of part time, thereby saving on benefits i.e. vacations, health, sick days, workman’s compensation. We could not keep our businesses open longer or add hours, as this would only increase our overhead costs.
Frank de Rosa , PhD, President. Advance Paper & Maintenance Supply, Inc.
________________________________________________________________________
In spite of the Temporary Property tax relief provisions passed in 2006, I have seen my property tax payment increase over 25 percent in the last two years while the full cash value of my property has declined 43 percent. In other words, the state revenues collected for 2008 and 2009 will be based on the higher cash values from the housing bubble since it takes two years for declines in value to equate to tax liability.
By my estimate I will not see relief from taxes caused by declines in my property values until tax payments are due in 2010. We need this relief provision to be extended for this reason alone.
We are a small service business, employing and paying healthcare for five employees. We are experiencing a significant reduction in revenues and are struggling to keep our workers employed. Our business credit line has been closed by our bank. Our house which we have owned since 2005 is upside down according to our lender. We have cut back on all unnecessary expenses. The next step will be to cut salaries, hours or benefits.
Linda M. Day
Day Enterprises, Inc.