News release from the Morris for State Senate campaign:
Morris small business plan to cut red tape, level the playing field
(October 15, 2014) – Candidate for State Senate Jack Morris laid out a three-part plan to help Hoosier small businesses grow and expand. In a press conference on Wednesday, Morris explained why taking steps to jumpstart smaller businesses is vital for the Allen county economy.
A level playing field for small businesses
Small businesses are the engine of the Hoosier economy. Firms with fewer than 10 employees make up more than 70 percent of businesses in Indiana. Morris’ plan would extend to small businesses the same tax credit Indiana already awards big corporations for hiring Hoosiers. That way, the majority of businesses in our community are given the same tax benefits to expand and grow.
Morris’ plan would also create a “fair-pay” tax credit for new and existing businesses that create jobs paying above the state’s average wage.
“This is a no-brainer. We provide tax breaks to big businesses for creating jobs,” said Morris. “It’s time to give our small businesses the same advantages and unleash their potential to create jobs.”
Delivering on promises
Abatements and tax incentives have a place in attracting good employers to Indiana. However, a lack of transparency has allowed the state to hide businesses that claimed they’d create jobs, accepted tax breaks, grants and incentives and then, failed to deliver or packed up and left.
Jack’s plan would give teeth to the state’s transparency and job creation reporting standards. He’d mandate that the Indiana Economic Development Corporation report all contracts with businesses – including those that fall through – and create a “claw-back” mechanism for any tax dollars that were spent by companies that fail to meet job creation targets or shutter before the contract terms are met.
“Hoosiers deserve transparency,” said Morris. “They deserve to know whether their tax dollars are being used in an effective manner that creates good-paying jobs. My plan shines more light on the process.”
Cut taxes for small businesses
Businesses pay taxes on the machinery and other personal property they own. For some small businesses, the process, paperwork and other costs associated with reporting business personal property taxes actually outweigh what’s collected. In fact, of the 250,000 or so businesses paying business personal property taxes, the bottom 100,000 businesses account for one percent of taxes collected.
Jack’s plan would remove the red tape and paperwork for small businesses with less than $25,000 in business personal property, exempting them from the tax and freeing up resources to expand and grow. The nearly $55 million in revenue lost from exempting small businesses would be offset by freezing a scheduled reduction in the corporate income tax and backfilling lost revenue to local governments.
“We can cut redtape and free our small businesses from this burden to concentrate on expanding while also ensuring local governments still have the resources they need,” said Morris. “This is a win-win for creating jobs and local communities.”
Morris plans to file his small business plan along with proposals to close the skills gap, eliminate the textbook tax and rebuild Allen county infrastructure.
About Jack Morris
Jack Morris is the Democratic candidate for State Senate District 15. Morris is a lifelong resident of Fort Wayne, a practicing attorney and advocate for strong schools. Morris for State Senate website.