NFIB: No Spike in Hiring for Small Business

WASHINGTON, D.C., November 1, 2012 — Chief economist for the National Federation of Independent Business (NFIB) William C. Dunkelberg, issued the following statement on the October job numbers, based on NFIB’s monthly economic survey that will be released on Tuesday, November 13, 2012. The survey was conducted in October and reflects the responses of 2,029 sampled NFIB members:

“Anyone expecting big economic news on the Friday before the election will be sorely disappointed. October, not unlike the last several months, proved to be another weak job creation month. Pessimistic uncertainty within the small-business community continues to dampen hiring plans. According to the October survey, owners stopped releasing workers; the average change in employment per firm rose to just 0.02 workers—essentially zero. While this development ends a four-month run of employment reductions (September’s number was a seasonally adjusted -0.23), it is no reason to get excited. Employment is still 4 million lower than it was in 2008 (first quarter).

“Last’s month’s surprising Household Survey will likely ‘right itself’ after its shocking 893,000 net new jobs (most part-time), a reading that is historically inconsistent with our current anemic two percent GDP growth. The unemployment rate will likely rise a tenth of a point or two, and only about 110,000 new jobs will show up in the Payroll Survey.

“Seasonally adjusted, 11 percent of the owners reported adding an average of 2.7 workers per firm over the past few months, and 10 percent reduced employment an average of 2.9 workers. The remaining 79 percent of owners made no net change in employment. Forty-eight (48) percent of the owners hired or tried to hire in the last three months and 38 percent (79 percent of those trying to hire or hiring) reported few or no qualified applicants for open positions. 

“The percent of owners reporting hard to fill job openings fell one point to 16 percent of all owners, the second monthly decline in a row. This is not good news for the unemployment rate as it has a strong negative correlation with this series.  Twelve (12) percent have openings for skilled workers, two percent for unskilled and three percent for both.

“Job creation plans remained weak, with a net four percent planning to increase employment, unchanged from September and 6 points below the August reading. Not seasonally adjusted, 10 percent plan to increase employment at their firm (unchanged), but 12 percent plan reductions (up 1 point). Not seasonally adjusted, hiring plans were strong only in the East South Central states.

“Overall, October job creation news is not the surprise that some may have been looking for.”

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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Proposition 204 Hurts Arizona’s Middle Class and Low Income Families

 

Proposition 204 disproportionately hurts Arizona’s middle class and low income families

What is a regressive tax? Simply, if a taxes’ burden falls more on the middle class or the poor than those who are wealthy, the tax is considered regressive or disproportionately punitive on those who can least afford it.

Proposition 204 is the perfect example of a regressive tax, targeting those Arizona families that can least afford to pay more for the goods that they need. Proposition 204 makes Arizona’s “temporary” sales tax “permanent,” making Arizona the second highest sales taxed state in America. Incredibly, the only state that has a higher sales tax is Tennessee, a state with no income tax.

Proposition 204 is marketed for education, but the revenue raised is not required to go to teachers or the classroom. In fact, the measure is a grab bag for special interest groups, containing over $100 million dollars for public transit and roads. So, while Proposition 204 contains money for politically connected special interest groups, the revenue raised is coming from those who cannot afford to be politically connected.

By their very nature, sales taxes are regressive because expenses such as clothing, shelter, food, and other household goods tend to be the primary costs of a middle class and low income households’ budget.

That’s why opposition to Proposition 204 is coming from all sides, from those who know it is bad for business and job creation and from those who know it will hurt poor Arizona families. Why are we “permanently” raising taxes on those people who can least afford it? Why are we “permanently” increasing taxes during a time when Arizona’s unemployment rate is still high? Why are we raising taxes under the auspices of education, but sending that revenue to groups not related to education?

There is nothing more important than the education of our children. Arizonans want a bright future for their kids and improving education is an important priority. But, we need real education reforms, not permanently mandated tax increases devoid of independent oversight or accountability.

Proposition 204 is bad for Arizona middle class and low income families, it is bad for teachers, and it is bad for Arizona’s economy. We need to Vote No on Proposition 204.

To learn more about Proposition 204, please visit our Website or our Facebook Page for more information.

There is nothing more important than the education of our children. That is why we oppose Proposition 204, a broken promise to make Arizona’s temporary tax increase “permanent.” Proposition 204 brings a permanent, billion-dollar-per-year price tag to Arizona families. While raising your taxes, Proposition 204 provides no real reform and contains no real accountability.

Arizonans want a bright future for their kids and improving education is an important priority. Although wanting to improve education, throwing money at the problem is not the answer. We need real education reforms, not permanently mandated tax increases devoid of independent oversight.

Additionally, Proposition 204 was written by special interests for special interests.

While Arizonans continue to struggle, do we really want to continue to raise their tax burden? Are we willing to have the second highest sales tax in America?

Arizona needs real education reform and jobs. Proposition 204 will make Arizona less competitive while providing very little benefit to Arizona’s education system.

Proposition 204 is too taxing on Arizona families, Vote No on 204.

 

Job Creators Cheer Referral of Proposition 116

Small Business Job Creation Act rolls back job-killing equipment and machinery tax

PHOENIX, Ariz., April 25, 2012 — The Arizona Secretary of State today received transmission from the Arizona Legislature of a crucial ballot referendum designed to spur new job creation and economic development. The state constitutional amendment, called the Small Business Job Creation Act, is positioned to be on Arizona’s November 6, 2012 General Election ballot as Proposition 116.

“Arizona’s small business job creators have heard loud and clear from their state legislators that help is on the way to rollback the job-killing equipment and machinery tax,” said Farrell Quinlan, state director for the National Federation of Independent Business who drafted the referendum with Senate Majority Leader Andy Biggs and other lawmakers.

“The heavy tax burden we place on small business’ equipment and machinery is self-defeating and anti-growth because it punishes the very investment in job creation that Arizona needs to fuel our economic recovery,” Quinlan said.

The Proposition 116 referendum, enumerated Senate Concurrent Resolution 1012 in its legislative form, seeks to amend the Arizona Constitution to reset the personal property tax exemption for new equipment and machinery purchases to an amount equal to the earnings of 50 Arizona workers, approximately $2.4 million. The current constitutional exemption is $50,000 indexed to inflation since 1996 or $68,079 in Tax Year 2012.

“We are very encouraged about Proposition 116’s ultimate success at the ballot box due to the unanimous bipartisan support it received from legislators. It’s a real testament to the soundness of this public policy proposal that every Republican and Democrat lawmaker voted for it. Proposition 116 proves the adage that good policy makes for good politics,” Quinlan concluded.

The unanimous legislative support for SCR 1012 is a rare example of bipartisan consensus from the contentious and often bitterly partisan 50th Arizona Legislature. The Arizona Senate passed the legislation 30-0 on February 16, 2012 and the Arizona House of Representatives passed it 51-0 with eight absent and one vacancy on April 23, 2012.

Proposition 116 must garner 50 percent plus one vote of those voting on the measure this November to amend the state constitution. If passed, the new provisions will affect personal property purchased in 2013 and thereafter while personal property already on the tax rolls will remain unaffected.

According to state law, the Secretary of State will make official the designation of the Small Business Job Creation Act referendum as Proposition 116 after the petition filing deadline passes for citizen initiatives on July 5, 2012. The Secretary of State is required to assign numbers to propositions in the order the measures are filed with their office. SCR 1012 was the third referendum filed for the 2012 ballot following the two measures sent by the Legislature in 2011 that will be designated Proposition 114 and Proposition 115 respectively in accordance with statute.

NFIB has already begun organizing a campaign committee to support the passage of Proposition 116. Those interested in joining that effort should contact NFIB’s Arizona office at (602) 263-7690 or send an email to farrell.quinlan@nfib.org.

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NFIB is the nation’s leading small business association with 350,000 members nationwide and 7,500 in Arizona and has offices in Washington, D.C. and all 50 state capitals.  Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.