BSP In the News
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- CFO: Small Biz, the Fiscal Cliff, and the Big, Bad Bank
- Westerly Sun: Business leaders urge change in tax system
- McClatchy Tribune News Service: A plea for tax fairness from small businesses
- UPI: 'Fiscal cliff': Is there a Plan C to avoid tax increases, spending cuts?
- Madison Capital Times: Wisconsin business owners join national call to raise corporate taxes
- Charlotte Observer: Charlotte small business owners urge tax reform
- Politico: 'Revenue-neutral' tax reform takes hit
- National Journal: Sen. Levin, Small Businesses Push for Corporate Tax Hikes
- Washington Post: Sen. Levin wants corporate tax revenue in a fiscal cliff deal
- The Hill: Corporate revenues must be in debt deal
- Accounting Today: Small Business Leaders Urge Closing of Corporate Tax Haven Loopholes
McClatchy Tribune News Service: A plea for tax fairness from small businesses
By Jim Spencer
McClatchy Tribune Regional News
Minneapolis Star Tribune, Dec 24, 2012. Also in Hispanic Business, Ames Tribune (IA), Grand Forks Herald (ND), Herald & News (OR), other papers
626 owners sign appeal to remember their importance during fiscal cliff negotiations.
WASHINGTON - The plea arrived from the hinterlands as a letter with 626 signatures of small-business executives, owners and operators, including 16 from Minnesota.
A coalition of small businesses assembled by three trade groups -- the American Sustainable Business Council, Business for Shared Prosperity and the Main Street Alliance -- begged the president and Congress to "make big corporations pay a larger share of taxes" as part of any "grand bargain" to deal with the nation's fiscal cliff and financial deficit.
The letter specifically urged Congress to stop rewarding big companies "for shifting jobs and investment overseas or disguising U.S. profits as foreign profits" to avoid paying taxes on them. The letter also stressed the need to make sure corporate tax reform produces more federal revenue than current laws.
"When powerful, large U.S. corporations avoid their fair share of taxes, they undermine U.S. competitiveness, contribute to the national debt and shift more of the tax burden to domestic businesses, especially small businesses that create most of the new jobs," the letter stated.
The deficit negotiations have given millions of small businesses a single rallying point that they once lacked, said Russell Price, a senior economist at Minnesota-based Ameriprise Financial.
And, collectively, they have a strong case. "The longevity and strength of the U.S. economy is based on small business and entrepreneurship" in contrast with other big international players such as Germany, France and China, Price said.
"Big business has the lobbying money; they get what they want," said Kathy Lauwagie, who once ran an accounting firm specializing in small businesses out of her home in Maplewood.
Lauwagie now sells natural pest control products online. For her, signing the higher-corporate-tax letter "was more of a symbolic gesture" than an expectation. But she believes an important, often overlooked point had to be made.
"Big business gets tax write-offs that are not available to small businesses," Lauwagie said. Small businesses lack the leverage to borrow investment capital that lenders routinely provide big companies, and small businesses "don't have the buying power or money for promotion."
Congress "most definitely" favors big business over small business, said Les Phillips, who ran a one-man technical writing and illustrating business in Minneapolis before retiring into part-time commercial photography and writing.
Phillips signed the letter urging higher corporate taxes "to at least nudge the conversation."...
Small-business people and some economic experts worry that corporate lobbying will keep the country's richest players from paying their fair share in deficit reduction and add to the financial burden of mom-and-pop shops.
"Small businesses are the traditional American engine of growth," said Hamline University law Prof. Ann Graham, once the head lawyer of the Dallas office of the Federal Deposit Insurance Corp. "They are more likely to hire people on a local level and develop new products."
In contrast, Graham said, cutting the corporate tax rate won't necessarily increase economic growth or job creation. ...
Copyright 2012 Star Tribune