Now that the landmark bi-partisan legislation extending both the Bush-era tax cuts and unemployment benefits, as well as reducing payroll taxes, has become law, local business people, though somewhat wary, seem to be embracing the most significant effort of Democrats and Republicans to work together since President Obama took office.
“(This legislation)Â offers hope to millions of Americans who are out of work that they won”™t suddenly find themselves without the unemployment insurance they need to make ends meet as they fight to find a job,” Obama said in a statement. “And it would offer additional tax relief to families across the country and encourage businesses to grow and hire.”
Businessman Bill Alderman of Westport wanted a change of direction in his career and opened a small retail store in Bridgeport earlier this year. The shop, called It”™s All About You, features upscale pre-owned items ranging from furniture to antiques to, well, just about anything.
To date, however, Alderman says the results have been underwhelming. He is hopeful that the new legislation will provide a jolt to his business.
“My shop definitely hasn”™t taken off the way I expected it too,” said Alderman, whose store is located in the Black Rock section of Park City. “But on the other hand none of my neighbors are doing well either. That includes restaurants, antique stores, you name it. Business is off across the board.”
He continued, “As for this particular legislation, what I hope it does is free up people”™s money so that it can be spent and support small business. If people are paying less taxes, if the unemployed have some income, all this potentially means that the economy will be stimulated and merchants like myself will be able to prosper.”
The affable Alderman admits he is somewhat discouraged by the lack of business.
“I wanted to try something different and I thought that Black Rock was an up and coming neighborhood,” Alderman said. “But it just hasn”™t happened. I”™m already thinking of pulling up stakes. If that happens, I would have been open less than a year. That”™s a shame.”
The conservative National Federation of Independent Business was also supportive of the legislation and believes its passage should be a boon for small business.
“We would have preferred a more permanent solution, but this is very good news nevertheless,” NFIB state Director Andrew Markowski said. “Raising the top marginal tax rate would have hit small businesses the hardest just when the country needs them to invest, expand and hire new workers. This deal gives small businesses at least two years of stability, which makes investment and job growth more likely in the intermediate term.”
According to Markowski, it”™s an imperfect deal, but considering the political landscape in Washington it is still a major victory for small businesses.
“Our members were most concerned about the predictability of the tax environment,” Markowski said. “Small businesses can”™t invest in the future if they don”™t know what their short-term tax liabilities are going to be. From that perspective, this is a satisfactory outcome.”
Michael Murren, owner of Murren Insurance in Fairfield and Black Rock Insurance in Bridgeport, has mixed feelings about the package.
“I”™m all for extending the tax cuts,” Murren said. “We are overtaxed at every level. But extending unemployment benefits makes no incentive. There”™s no incentive for people to go out and look for jobs if they”™re living on the dole.”
In any event, the biggest impact of this legislation on the economy may be that both sides of the congressional aisle have demonstrated that they are willing to compromise. And that is not business as usual.
