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Archive → October 24th, 2011

Government hurts employment

From Beautiful Homer Glen I listen to all the political commentators and elected officials talk about creating jobs. There is a discussion of throwing more money into job creation by putting our taxes up for infrastructure improvements. The problem is that construction jobs help in the short term, but when the job is finished people are out of work again. It takes very little thought to come up with a solution.

Business is leaving because Government without doing anything is now more than an equal partner sharing in the profits without any risk or any responsibility. Government also increases the regulation on business through administrative law passed by an alphabet soup like FDIC, FDA, FREDDIE MAC, DOT, EPA, DOE, OSHA, etc. The cost of doing business and the humps that have to be jumped on every layer of government make it almost stupid to do business in The United States, and in particular Illinois. To open a mom and pop restaurant in Illinois, you need approval from the city which entails conforming to multiple regulations from landscaping to lighting. The County sends out the Health Department and various inspectors, The State makes you purchase permits, and set up to pay State tax. They may send the State Fire Marshall to inspect. The local fire Department will also visit. The Federal Government will be looking for compliance with Federal Codes. It goes on and on with fees for everything.

Once the business opens, the owner hoping to make a 10% profit after expenses gets to pay his equal partner in Illinois a 10% corporate tax, and then a federal corporate tax, and lets not forget that some counties and cities also have a tax.

Cut the taxes, and relax the regulations to the extent that it is cheaper to do business in the United States, and the State you live in. The government does not need to throw more money into job creation. Government simply needs to take their hand out of the pocket of business, and relax excessive regulation.