This is what happens when you saddle businesses with heavy new taxes and mandates for employee health benefits. That plus the certainty that some sort of major tax increases are about to come out of the “fiscal cliff” negotiations equals fewer Americans employed.
(CNSNews.com) – A recent poll from the Wells Fargo/Gallup quarterly survey shows that U.S. small business owners are growing “increasingly pessimistic” as the new year approaches, finding that 21 percent of small business owners’ expect to decrease their workforces in the next 12 months to a level not seen since Aug. 2003.
Wells Fargo small business head Marc Bernstein attributed the potential decline in confidence in part to the possibility of going over the “fiscal cliff,” or the automatic tax hikes and defense cuts scheduled to occur if Congress and the White House do not reach a budget deal by the end of this month.
“Business owners who navigated through the Great Recession now face more uncharted territory created by ongoing uncertainty in Washington,” he said.
Our political leaders keep grasping for some government program, some series of “stimulus” spending and government “investment” programs which will shock the economy back to health. But what the economy needs is lower taxes, a simpler tax code and fewer regulations.
It really is that simple. Of course, that means politicians giving up some of their power while displeasing certain government-dependent constituencies.