Monday, June 22, 2009

Business is the Lifeblood of the Economy

By:

Chamber President Scott Starr

These troubled economic times are producing some interesting solutions to the problems that we are all trying to work out. Recently, the Oregon legislature made the decision to disconnect the Oregon income tax from the federal tax code, which would eliminate much of the tax benefits to the business community from the Federal Stimulus package and is in essence a $96 million tax increase. This decision has the business community and anyone who is a proponent of free enterprise wondering how putting Oregon businesses at a competitive disadvantage will help our local economy. Not only has our state legislature put many businesses at risk for the short term, they have also gone to great lengths to make our local businesses less viable and competitive in the long term vs. other states. This action will probably be signed into law by the governor, has left the business community trying to make sense out of what just transpired.

Business is the lifeblood of the economy; more government is not. Business generates wealth; government spends it. That in itself is not a bad thing unless government gets in the way of businesses’ ability to generate wealth. What we have witnessed is, in effect, the Oregon legislature killing the goose that lays the golden eggs because they think they have their own recipe for gold. It just doesn’t work that way. History tells us the Oregon economy lags behind the nation. Why have we consistently over at least the past 12-14 years been one of the worst performing states when it comes to unemployment and economic growth? One must wonder what sense it makes to spend so much money per student on education if the state can do no better than to create a market environment that is somewhere from ambivalent to hostile for business. All we end up doing is exporting our children to other states who welcome their talents with more opportunity and jobs.

Something is wrong with this cycle. How many more jobs will be lost before Oregon’s elected leaders stop using band-aids and start trying to find a cure. The most recent band-aids for expense management by making Oregon families and small businesses pay $96 million more in taxes is not the answer. It is time that the employed and unemployed of Oregon start making our legislators accountable for putting our economic livelihood at risk. Perhaps it is time we “cure” the Oregon House and Senate from those who choose to curtail wealth creation in favor of spending more to stay in power. Perhaps it is time to share more with the state Speaker of the House, President of the Senate, and Governor that their policies are not working. At the same time, the pro-business actions of Wilsonville’s legislators, Representative Wingard and Senator George, must be encouraged to continue advocating for free enterprise and business prosperity.


www.wilsonvillechamber.com