As a certified public accountant, I have the opportunity to visit with many businesses. Let me tell you what business owners think about tax increases at the federal and state level during these difficult economic times. “They do not care if taxes are increased!”
If taxes go up and they can no longer operate a profitable business, then they simply lay off all of the employees and close the doors.
If taxes go up and they can continue in business, then they simply lay off some of the employees, reduce pay by 20 percent or more, or cut back hours.
In all of these cases, the employees have less income to pay their bills, credit cards and mortgages, which results in more bankruptcies, more foreclosures, and, worst of all, deflation — the enemy of all of us.
Therefore, any increase in taxes only increases unemployment and increases the difficulties in the economy.
As Woody Guthrie said, “Some will rob you with a six gun and some with a fountain pen.”
During bad economic times, every tax increase robs businesses of money to pay their employees, who need that money to pay their bills.
All of you employees out there should read the Olympia tax increases as decreases in your payroll checks and potentially no payroll check at all.