Everyone is looking for a way to create more jobs. Two simple incentives could encourage businesses to create jobs; reduction of onerous regulations against businesses and maintenance of the federal tax cuts.
Business is becoming more challenging all around us, as new technologies and growing economies in other parts of the world force constant adaptation. We must keep up with changes, if we are to remain competitive in the current economy. A major deterrent to making needed changes is the cost, in time and money, of meeting regulatory requirements.
Environmental regulations are some of the most difficult ones businesses face. Not all regulations fit all industries. Most green initiatives are good and accepted by most businesses relating to energy savings and greenhouse emissions. But presently, greenhouse gas regulations being proposed seem to go beyond US laws.
For example, in the energy field, a cap and trade bill was not voted into law. Apparently, EPA recently, with little advance notice to the general public, added new regulations standards for various coal-using utilities. These regulations seemed to be slipped in and hardly noticed. New conversion regulations for many of these utility facilities would have to be met. To conform to these new regulations could cost the utilities almost as much as building completely new installations. If instituted, higher electricity costs, to users and businesses alike, would result. In reality, it would be a tax increase, in the guise of billing increases to the consumer on their electric bills. The cost to utility companies would be almost the same as if the new cap and trade bill had been passed.
In California, some environmental groups and the Teamsters union are seeking to create a federal law exemption on pier deliveries, which would require drayage truckers to become employees of motor carriers, instead of being independent owner-drivers. To further reinforce it, local government officials want new diesel engines and truck specifications rules to affect those truckers delivering to the piers.
And a proposed law for 25-cent-per-connection tax on calls transferred to foreign countries was proposed by a New York senator last June, which would require such calls to be documented and reviewed by the federal government. Speak of Big Brother watching and controlling businesses in the future.
OSHA recently withdrew a federal crane and derrick regulation standard for building material dealers, but applied new rules for large tower cranes in the construction industry. Using a new standard to building material dealers would have made unnecessary added staff and increased costs on lumber deliveries to job sites. Government inspectors protect our citizens from being harmed by inappropriate actions by businesses. But some inspectors are arrogant or demanding, and many fines levied for some unintentional minor violations are excessive, especially against small businesses, which could result in bankruptcy or being put out of business.
Government often feels anti-business. There is inadequate transparency on new regulations made on industries affected by those laws. Small or large businesses have little, if any, prior input or knowledge of what was to be enacted on rules or regulations, generally adapted after laws are passed. Most government agencies’ staffs have not previously worked in industries they regulate, yet agency personnel are the ones who help make and enforce those rules.
Without knowing what future regulations will affect them, businesses hesitate to invest money to expand or to upgrade equipment to increase jobs, even with tax incentives offered beforehand.
Increased taxes concern businesses, and keep them from investing money in their operations, which could create jobs, especially in these difficult economic times. Keeping the Bush era tax cuts could induce the use of capital to be invested by small business owners for growth and new equipment spending.
The American dream is for each of us willing to better ourselves. People are in business to make a profit. Profit is not a dirty word. When businesses make profits and sell products, they grow. As they grow, they create jobs. Yes, many small business owners earn over $250,000, in profits and salary from their businesses. But most do not.
Big and small businesses have surplus money to invest that bring jobs, but unless federal and state governments ease up on unduly harsh regulatory enforcement and reduce heavy fines, companies will not grow and unemployment will continue.
Instituting tax cuts and a moratorium on new regulations can be the first step towards jump-starting jobs.
— Bernard Featherman is past president of the Biddeford-Saco Chamber of Commerce. He can be reached by e-mail: bernard@featherman.com.
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