Category Archives: business

Effects of Federal Tax Cuts on Small Businesses

Posted on September 13, 2010 by | Leave a comment

By Congressman Steve Austria

In the past month, I have talked with many small business owners across the 7th Congressional District – from farmers to manufactures to members of our local chambers of commerce. Each has questioned and voiced their concerns regarding the temporary tax cuts put in place in 2001 and 2003 that will expire on January 1, 2011 if Congress does not take action.

If Congress allows the tax cuts to expire, it will equate to a $3.8 trillion tax increase that will affect all taxpayers. With the numerous taxes already imposed in legislation ushered through by current Congressional leadership, the last thing Ohioans need right now are further tax increases. In particular, small businesses – which produce 70 percent of new U.S. jobs – will see a direct impact that will affect their ability to create and sustain area jobs.

Specifically, if the tax cuts are not extended the individual income tax rates will increase across the board. Not only does this take money out of the wallets of all taxpayers, but many small businesses are taxed by this rate as well. This increase could be detrimental to those businesses that are already facing difficulties in obtaining credit and meeting payroll.

In addition, if no action is taken the federal estate tax will be reinstituted. This tax disproportionately affects small businesses and family farms. Many times, upon the death of an owner, small businesses are forced to sell to pay this tax and jobs are lost.

The indecision surrounding this issue is causing uncertainty for our local businesses who are seeking assurance in these difficult economic times. Congress needs to make the tax cuts permanent including the estate tax, capital gains tax and dividends tax to assist in creating an environment of confidence and encouraging local entrepreneurs to invest in their businesses creating long-term, sustainable jobs.

Beyond permanently extending the tax cuts, Congress needs to stop the spending. According to a recent U.S. Census Bureau report, federal domestic spending increased by 16 percent to $3.2 trillion in 2009. This does not include any interest paid on foreign debt. If we don’t stop the spending and let Americans keep more of their hard-earned money we won’t be able to turn the economy around.

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Posted in business, economy, Ohio, politics, taxes

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Sen. Brown Joins Mayor Bayless at HOPE Cafe in Xenia

Posted on August 26, 2010 by | Leave a comment

U.S. Sen. Sherrod Brown (D-OH) and Xenia Mayor Marsha Bayless visited the HOPE Café in Xenia yesterday morning. Brown and Bayless toured the cafe and spoke with current and past apprentices participating in the program.

“Businesses like the HOPE Café provide participants with the skills and support to re-enter the workforce as competitive employees who are able to live independently,” said Senator Brown. “By providing tailored education programs for regional industry needs, we can ensure that all Ohioans are equipped with the skills for jobs of the 21st century.”

Through the American Reinvestment and Recovery Act of 2009, Hope Café received $123,985 in funding through the Community Action Partnership. Brown and Bayless were joined by HOPE Café Director Gale Hutchinson.

Hope Café opened in September 2009 as a small catering company to provide culinary skills and job training for homeless men and women to prepare them for jobs in the restaurant and service industries. Just two weeks ago, HOPE Café opened as a restaurant. When the apprentices graduate from the eight week program they receive assistance in finding jobs at local restaurants.

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[While working in Ashland, this blogger visited Pump House Grille. It was developed by one of Ashland’s pastors (and, if memory serves, professor at Ashland College) to help homeless and low income individuals gain marketable skills. The food was quit good and the atmosphere very unique. The restaurant and related ministry outreaches are located in the abandoned F.E. Meyer Pump manufacturing building that was donate by its previous owner. Looking forward to visiting Xenia’s unique Hope Cafe.]

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Posted in business, news, politics, Xenia

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General Motors reports $1.3 billion in 2nd quarter profits

Posted on August 16, 2010 by | Leave a comment

General Motors recently reported second quarter revenues over $33 billion and profits totaling $1.3 billion. GM claims it now has made up for its previous $13 billion loss. What was not clear is whether the the $13 billion was made up by the recent $33 billion revenue stream, prior quarter profits, or by the $50 billion bailout by Democrats on Capitol Hill. Whatever the case may be, the federal government still owns GM. A positive light at the end of no GM’s not so dark tunnel is their likelihood of issuing a new public stock offering in the near future. Presumably, this means the recession is now over and the government’s 61% ownership will be purchased by private investors. The key word here is presumably not actuality.

Source: Industry Week, August 12, 2010.

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Rep. Steve Austria on Blue Ribbon Commission

Posted on July 19, 2010 by | Leave a comment

It is important now, more than ever, to focus on how our region can be more competitive and bring additional jobs to Ohio. This week,  I joined members of the Blue Ribbon Commission at a meeting held at Wright State University. I appointed the commission to examine how local companies and universities can better position themselves to win more contracts, create more jobs and support Wright Patterson Air Force Base, one of the largest single site employers in the state. It is made up of a broad cross-section of talented and energetic community leaders who have extensive experience both inside and outside the fence, including business leaders and individuals in academia.

When the commission was formed, members were tasked with submitting their recommendations for increasing the number of contracts awarded to local companies, in turn creating more private-sector jobs in the area that can be sustained for years to come. They were asked to look into a wide variety of issues including identifying any impediments to local companies and determining the best business model to receive contracts.

The commission has completed its work and identified 18 specific ways we can enhance regional economic opportunities through partnerships with the business community, academia and government in the Dayton area. John McCance, who is retired Air Force, and Gary Kowal, who has several years of experience in defense contracting, served as co-chairs of the Blue Ribbon Commission and presented the commission’s findings, conclusions and recommendations to the public. Some recommendations highlighted in the report include,

* Utilize social media (a website, or collaborative networking site) to house centralized information to include such items as a calendar of events; detailed information on government requirements; prime/sub contractor opportunities and links to related informational sites.

* Leverage the region’s engineering capabilities and skill base to accelerate subcontractor opportunities with large defense contractors who are involved in the research, development and manufacture of weapon systems acquired by WPAFB.

* Publish the “Corporate Development Education Framework” as a tool to help beginning, intermediate and advanced businesses assess their government contracting maturity and identify areas for improvement.

* Establish a centralized electronic capability for local area businesses having service, R&D, manufacturing, and other capabilities to provide detailed information about their qualifications, capacity and contact information and have it indexed by product and service.

* Encourage the State of Ohio and local governments to support a program, similar to the State of Utah, which provides funded support in the areas of opportunity assessment, strategy, proposal development, contract negotiations, capture and program support.

* Provide access to additional resources and training in the area of proposal writing and preparation.

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Posted in business, economy, Greene County, news, Ohio, politics, research, schools, science, taxes

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Kettering Health Network Among Top 10 In Nation

Posted on June 29, 2010 by | Leave a comment

The Kettering Health Network was awarded a spot among the top ten health network by Thomson Reuters. In their annual health system benchmark study of all hospitals. The top 100 hospitals are selected to establish benchmark standards for hospitals. Out of the top 100 hospitals, the nation’s 10 health networks with the highest benchmarks were chosen.

The winners of this award outperformed their peers by providing better care, following standards of care more closely, saving more lives, creating fewer patient complications, making fewer patient safety errors, and earning better overall patient satisfaction scores.

This year’s top health systems had

* 12.3% fewer mortalities
* 13.2% fewer complications
* 5.4% better patient safety than their peers
* Patients returning home sooner — with an average length of stay more than half a day shorter than at similar systems — and with better longer-term outcomes.

One member of the Kettering Health Network is Greene Memorial Hospital located here in Xenia.

Source: Ohio Hospital Association, June 25, 2010 and Thomson Reuters

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Posted in business, health, news, Ohio, research, Xenia

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Too Big To DISCLOSE? SBE Council Rips Bill that Protects Speech of Powerful Interests, but Muzzles Small Business

Posted on June 23, 2010 by | Leave a comment

With a June 18 vote expected in the U.S. House on the so-called “Democracy Is Strengthened by Casting Light on Spending in Elections Act” (DISCLOSE Act, H.R. 5175), a leading small business advocacy organization ripped the legislation, and said its clear intent is to silence the voice of small business during the 2010 election cycle. SBE Council President & CEO Karen Kerrigan sent a letter to every House member detailing the group’s outrage about H.R. 5175’s “unconstitutional, discriminatory, onerous and politically motivated underpinnings.” SBE Council will KEY VOTE the legislation as a vote against small business in its upcoming Ratings of Congress.

“Small business owners are rightly outraged by this legislative charade. It imposes complex and burdensome ‘disclosure’ requirements on businesses and their associations, while exempting big powerful interests like labor unions, the NRA and AARP. First there was ‘too big to fail’ and now ‘too big to disclose’ – small business owners keep getting the shaft from this Congress,” said Kerrigan.

According to SBE Council’s Kerrigan, H.R. 5175 is a bad bill that got worse once the National Rifle Association (NRA) cut its deal with House Democrats. The NRA will not take a position on the bill ever since language was included that effectively exempts the organization from its onerous and unconstitutional demands.

Kerrigan said, “This special deal for the NRA and other groups is a scandal. It speaks to the desperation of the bill’s supporters to muzzle the business community during the upcoming election cycle.”

The unwarranted, complex and burdensome disclosure requirements in H.R. 5175 would apply to businesses and business associations, but not to labor unions or the NRA due to the crafty donor levels designed by the legislation. Blanket restrictions on election-related speech, such as independent expenditures, would be placed on government contractors, but effectively not unions under government contract. Unworkable and intimidating “stand by your ad” provisions would only apply to business groups and other advocacy organizations.

“Essentially, the free speech rights of labor unions, the NRA and a few other powerful interest groups are left intact by the bill. Our voice is effectively curbed by the legislation,” added Kerrigan.

According to SBE Council, the bill’s language flies directly in the face of the kind of speech most clearly and fully protected under the First Amendment, i.e., speech related to politics, elections and policy. The U.S. Supreme Court has been clear in its decisions that such speech warrants protection, and any differential treatment of speakers based on identity or content violates the First Amendment.

“No matter where one happens to fall on the philosophical and political spectrum, this legislation is nothing less than shameful,” concluded Kerrigan.

SBE Council is a nonpartisan organization dedicated to protecting small business and promoting entrepreneurship. For additional information, please visit: http://www.sbecouncil.org/.

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State (& Local) Tax Revenue Decline : A Perspective

Posted on May 14, 2010 by | Leave a comment

By Daniel Downs

A new state revenue report by the Tax Foundation came our yesterday. The report entitled “State Revenue Changes from 2008 to 2009” reveals Ohio tax revenues declined 8.7 percent the period assessed. Ohio ranked 28 which amounted to 2/10 of a percent below the national average of 8.9 percent.

Alaska suffered the highest percent of revenue decline at 51.9 percent. The next highest was Arizona at 19.7 percent, followed by California at 15 percent, and then Idaho at 14.1 percent. The state with the highest percent of tax revenue gain was Wyoming at 13.9 percent, followed by North Dakota at 4.3 percent, and then by Oregon at 1.9 percent.

The report also broke out the tax revenue losses by tax category i.e., property tax, individual income tax, corporate income tax, general sales tax, and selective other taxes. Ohio didn’t report property taxes collected. However, the report did show that the greatest loss of tax revenue in Ohio originated from corporate income declines. The percent of corporate income tax revenue decline was 36.6 percent, whereas individual income tax revenue decline only 16.8 percent. Sales tax revenue declined a mere 7.1 percent.

The high level of corporate income tax loss is due to the closing of both large and small businesses throughout the Ohio as a result of the great recession. Both greedy investors and power-mongering politicians must be thanked for the losses.

As mentioned in previous posts, the loss of tax revenues by Ohio government came after consistent increases in tax revenue and increased spending. The report brings this out very clearly in its historical statistics. When those national statistics are added up, the total percent of tax revenue increase was 19.7 percent, that is the total average increase for the nation from 2000 through 2007. The total decline from 2008 through 2009 was 9.2 percent.

The last paragraph of the report puts these above figures in proper perspective:

“Although state tax revenue decreased significantly during fiscal year 2009, the decrease is almost exactly matched by earlier years of major increases. Over the last decade, adjusting for inflation, state tax revenues have increased by 6.1 percent. When controlling for population, tax revenues are down about one percent.”

Like Xenia, many local communities are getting less money from the State because of the decline in tax revenues collected. As the report indicates, the real loss is only about 1 percent. That is why during times such as these taxpayers should not allow government officials to raise taxes to cover short-term fiscal problems is wrong. it is simply wrong to fix short-term financial problems with permanent taxes. The right thing is to assure that public officials practice fiscal and budgetary restraint. If necessary, they can always dip into the million dollar plus reserve fund until the economy actually recovers.

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Vote Yes On Issue 1?

Posted on May 4, 2010 by | Leave a comment

A businessman from Central America responding to a post made a very enlightening observation about Ohio. He said Ohio is a like a third world country lacking adequate development. Almost all media outlets, business organizations, universities, as well as the mother, brother and sister of nearly everyone else, seems to agree; they are all promoting the renewal of the not-yet-ended Third Frontier funding for high tech development.

So, why not follow the crowd. Well, because crowds generally chant whatever smooth talking speakers claim. Like other dumb animals, we like sheep are easily led astray–also called the herd mentality.

It cannot be denied that 48,000 new jobs have been created as a result of the Third Frontier economic stimulus fund. Ohio taxpayer gave the state $500 million to help develop high tech industries and job. Each job created cost taxpayers over $10,400. SRI Intl. research claims it also produced a positive economic impact of $6.6 billion. (A must read is an article by Tom Breckenridge on Cleveland.com)

If we forget that politicians and big business sold off our low tech industrial job to China and other nations, we also forgot the much how much greater the Third Frontier has actually cost. And, did most Ohioans really benefit from the sale? I doubt it.

Yes, Third Frontier is a boondoggle for universities, big energy, drug companies, General Electric, and some new enterprising tech companies. They will create new jobs while eliminating old ones. The costs are likely higher for many individuals than politicians and big business concerns care to acknowledge. For example, many young Americans will end up having to compete with foreigners with Green Cards.

Yet, in spite of the young who will benefit from those new jobs, if foreigners are need to fill positions, those jobs will in the end not be such great paying jobs. Just asks those experienced in computer technologies.

Trusting the hype media, business leaders, and politicians is like believing FDR’s welfare program would be a temporary remedy for those affected by World War II. You can be certain that Third Frontier welfare for high tech corporations will be as temporary.

Who pays for corporate welfare? All of the middle class who supposedly benefit from all of the great new jobs. Remember, low-tech Wal-Mart and the factory farm.

Carrie Mihalick wrote an article in which she traces the fascist or progressive history of the Third Frontier movement across the world and to Ohio. Her research facts reminds of the Progressive results of Obama and progressive Congressional Democrats economic policy. Third Frontier may seem more discrete than Obama and Company in how it will eventually run tech business in partnership with big business but I doubt it. (Her article is another must read.

Allowing the Third Frontier to continue will the Ohio Constitution’s 5% cap on state debt service to be violated. (See the rest of the argument by a number previous Ohio legislators by going here.)

A better plan is to give venture capitalists bigger tax breaks for investing to create new high tech industries and jobs. Let big corporation reinvest in their own high tech developments. Make politicians stick to policies and funding initiatives that actually do benefit all citizens rather than the chosen few.

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Posted in business, economy, news, Ohio, politics, research, science, taxes

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Josh Mandel Seeking to Make Ohio Business Friendly

Posted on April 15, 2010 by | Leave a comment

By Josh Mandel

Ohio is facing numerous challenges, including a large budget deficit, double-digit unemployment and an exodus of jobs, young people and retirees. Solving these problems requires responsible leadership and fresh thinking — and I am working hard every day to identify business-friendly, limited-government solutions to Ohio’s economic struggle.

Here are some examples:

Making Ohio More Business-Friendly Through Regulatory Reform and Government Consolidation:

Businesses will locate and grow where there exists a stable, certain and friendly economic environment. Unfortunately, too often bureaucrats in our state government view businesses with a “guilty until proven innocent” attitude. Instead, I believe that our state government workers should be waking up every morning asking themselves, “How can I help Ohio businesses succeed, or at least get the heck out of the way?” Therefore, I have been a strong proponent of instituting state government regulatory reform, including:

– Streamlining EPA permitting processes.
– Restructuring the Bureau of Workers Compensation.
– Eliminating the waste, fraud and abuse in Ohio’s Medicaid system.
– Consolidating the size of our state government.

Prioritizing Ohio Businesses Over Out-of State Businesses:

I was disturbed to learn that certain programs in the Ohio Department of Development give preferential treatment to companies located in other states over companies already located in Ohio. Yes, you read that correctly. There are economic incentive programs, funded by our tax dollars, for which companies in Kentucky and West Virginia can qualify but companies in Ohio cannot. This backwards approach to growing Ohio’s economy sends a terrible message to Ohio businesses, and I have been proud to stand up to change it. I have referenced this problem in many speeches and gatherings and am taking leadership to alter the focus of these programs in order to rightly prioritize Ohio businesses.

Eliminating Ohio’s Estate Tax:

Since I stepped foot in the Ohio legislature, I have been proudly advocating for the elimination of Ohio’s estate tax. I wrote about it last year and continue to lead on it today. This form of double-taxation has had the unfortunate and predictable result of making Naples, Palm Beach and Phoenix second capitals of Ohio. By forcing retirees to become citizens of other states, we are losing an incredible amount of financial and intellectual capital that should be invested in our communities. Ohio’s estate tax hits the middle class, homeowners and farmers while driving jobs, capital and families out of Ohio. I am committed to work with Republicans and Democrats at the Statehouse to eliminate this economic burden on Ohio families and Ohio’s economy.

Growing Ohio’s Economy through Independence from Foreign Oil:

I also continue to be a strong co-sponsor of House Bill 107 which is a measure to allow Ohioans to drill for oil and gas on state lands. This legislation would empower Ohioans to maximize the natural resources within our borders in order to create jobs, promote economic activity and foster independence from foreign oil. I believe responsible exploration of oil and gas in Ohio will help drive down energy prices for Ohio families and businesses and contribute to our nation’s fight against terrorism. I am also proud to support efforts underway to build a coal gasification plant in Ohio, which would utilize Ohio coal to create Ohio jobs and foster independence from foreign oil.

These are just a handful of the issues on which I am working to improve the lives of Ohioans and reverse the exodus of jobs, young people and retirees from Ohio. Through countless hours at the Statehouse and by traveling 76,251 miles throughout the state, I have heard from thousands of people and the message is clear – Ohio needs new leadership. I am ready to provide Ohio with the leadership it needs in order to improve our economy through economic freedom, limited government and fiscal responsibility.

State Representative Josh Mandel is the GOP candidate for the office of State Treasurer. His endorsement is seen by many as a win for the Ohio Tea Parties.

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Posted in business, economy, election 2010, Ohio, politics

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Public Perception of Political and Business Ethics

Posted on March 31, 2010 by | Leave a comment

In the March AEI Political Report, a compilation of various polls of public opinion is presented to give a composite view of America’s perception of its current state of affairs. The Report includes perceptions about Obama, personal finance as well as economic trends, taxation, global warming, balance of power, the current international hot spots Iran, Cuba, and Afghanistan, job satisfaction, and even a parental do and don’t list.

In this post, ethics will be the focus.

The trend of public opinion about honesty in politics has has steadily declined since the 1940s. In 1948, Americans were asked whether it was almost impossible for a person to stay honest after entering into politics. Forty-eight percent (48%) agreed that it was. By 1997, 55% said it was nearly impossible to remain honest in politics. Twelve years later 55% said the ethical standards of Congressmen and Congresswomen were very low, while only 9% said they were high. Although the question was different, the perception of political corruption remained the same.

I wonder whether the 36% were too afraid to say what they believed.

The general public perception of business ethics didn’t fare any better.
Although the survey data did not provide a historical perspective like was seen above, it did reveal how low a view Americans have of business management compared to helping profession like nursing and law enforcement.

In 2002, Americans (34%) regarded CEOs more ethical than they did in 2009. In fact, the percent of Americans who regarded CEOs as ethical dropped to 22 percent. Maybe the Enron scandal was factor. Nevertheless, the figures also reveal that 66% American regard CEOs are scoundrels.

Compared to bankers, car salesmen, stockbrokers, politicians, HMO managers, and insurance sales people, CEOs are nearly saints. Of the lot, 12% of Americans said bankers were ethical. Less than 10% of American considered any of the rest as ethical.

These poll results tell us that Americans are willing to put up with both a corrupt system of governance as well as corrupt marketplace. Why?

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