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Small businesses key to economy
TimesGazzette.com - July 2, 2008 - Sen. John Carey
Last month, in response to the devastating news that DHL could outsource thousands of jobs from the Wilmington Air Park in Clinton County to Kentucky, I joined a task force of federal, state and local officials, as well as several business and community leaders, hoping to influence the company's decision and assist the surrounding community with future economic development efforts. Since then, my staff and I have made several trips to area.
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Sen. John Carey Ohio’s 17th Senate District |
For Ohio to achieve its economic goals, we need to foster investment from large employers, while also working to support the state's small business owners. After the General Assembly enacted tax reform in 2006, including a 21-percent income tax cut and a phase-out of the state's tangible personal property tax, small businesses were able to enjoy the same tax treatment as their larger counterparts.
This was not the case in years past when many big corporations would negotiate tax abatement, while small companies would continue to pay the full tax. Now, the local machine shop with two employees will have the same opportunity to benefit as a large employer such as Proctor and Gamble. It is also important to note that Ohio's tax burden has dropped to 38th in the nation since tax reform passed.
While we have certainly made progress in recent years, there are still hurdles to clear in creating a favorable small business climate in Ohio. Unfortunately, excessive and nonsensical regulation is still a major barrier to economic growth in the state. Many state regulators are fair and very competent in fulfilling their mission, but I still hear too often from small business owners that say unnecessary government regulations threaten their success.
There is a continuing effort among legislators and the governor to address the issue. In February, Gov. Strickland issued an executive order asking state agencies to review all rules governing business operations in the state and work to amend or rescind those that are unnecessary, repetitive or needlessly delay economic growth, including an effort to reduce the processing time for permits, licenses and other required certification.
So far, this has produced favorable results. It is essential that we continue to work to get this right, because one bad experience can hurt Ohio's chances of creating and retaining jobs.
In addition, the Senate State and Local Government and Veterans Affairs Committee recently heard testimony on House Bill 285, legislation sponsored by State Representative Ross McGregor (R-Springfield), which seeks to lessen the administrative burden on small businesses.
The bill waives fines or penalties for first-time paperwork violations that don't threaten health and safety. HB 285 passed the Senate at the end of May and was recently signed by the governor.
The state has implemented a number of programs over the past several years to assist Ohio's manufacturing base and foster growth.
Now we must do the same for our small business folks. On a positive note, the Ohio Department of Development has established 36 Small Business Development Centers across the state, which partner with colleges and universities, economic development agencies, local chambers of commerce and other community organizations to provide support services to area small businesses.
For more information, visit http://development.ohio.gov/Entrepreneurship/sbdc.htm or call (800) 848-1300 ext. 6-2711.
Sen. John Carey, R-Wellston, represents Ohio's 17th Senate District.
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