Small Businesses Criticize Gov’s Overemphasis on Tax Hikes, Lack of Spending Reforms

The Small Business Association of Michigan (SBAM) is very disappointed with Gov. Granholm’s proposed 2010-2011 state budget. “Heavy on tax hikes, light on spending reforms and headed in the wrong direction in terms of the long term efforts that are going to be needed to revive the economy and grow jobs,” says SBAM President and CEO Rob Fowler.

Fowler cited the gloomy results of an SBAM survey of 400 small business owners, conducted in mid-January, that found:

•    52% of small businesses said their sales decreased in the past six months
•    47% had their profits drop
•    24% were forced to cut employees
•    67% could not afford to provide wage hikes
•    61% give a negative rating to the quality of Michigan as a market for their goods and services
   

“With the small business economy in such sorry condition, why on earth does this administration think it’s a good idea to propose a net tax increase that takes money out of the pockets of Michigan citizens?” asks Fowler. “Instead of tax hikes, small business owners demand a right-sizing of state government, accomplished with significant, cost-saving structural reforms. Just as they have had to do with their own companies, these entrepreneurs expect state government to adjust to economic realities.”

(Do you agree or disagree with SBAM’s views? Leave a comment below.)