NFIB Maryland: A Tax Cut for Hollywood A-Listers and a Labor Cost Increase for Small Business?

Date: March 24, 2014

Annapolis
(March 24, 2014)

Will lawmakers give a tax break to the jet-setting one percent and then plop a
big wage increase on the state’s smallest businesses?  The answer to that question will say a lot
about the priorities in Annapolis, said the National Federation of Independent Business (NFIB) today.

“It’s
instructive that they’re considering these two bills at the same time,” said NFIB Maryland State Director Jessica Cooper.  “I love Kevin Spacey but I care a lot more
about the kids working in movie theaters than I do about the movie makers.”     

Spacey, a
popular Hollywood actor and star of the hit Netfix series House of Cards, was
in Annapolis Friday romancing lawmakers on a bill to give the production
company millions to keep filming in Maryland. 
Some of those legislators are likely to vote also for a 40 percent
increase in the state minimum wage despite its potential to hurt small
businesses and destroy low-level jobs.

“It’s
upside down,” said Cooper.  “We should be
cutting costs for the home-grown businesses that want to stay in Maryland instead
of lavishing subsidies on flash-in-the-pan companies that could be gone
tomorrow.”

Governor
O’Malley is pushing a minimum wage bill that would raise the rate to $10.10 per
hour over the next three years with an automatic increase every year thereafter
based on inflation.

“It would
mandate a 39 percent increase in labor costs in an economy that’s growing at
one or two percent a year,” said Cooper. 
“Some small businesses won’t be able to absorb the increase and they’ll
have to make cuts elsewhere.  The
employees at the bottom will be hit hardest.”

The
nonpartisan Congressional Budget Office
(CBO)
recently predicted that a similar proposal at the federal level would
destroy more than half a million jobs.  Similar
research in Maryland shows the same result. 
In fact, the Maryland Public Policy Institute estimates that O’Malley’s
bill could slash
new job creation by 25 percent
.

“This is a
very strange economic strategy,” said Cooper. 
“On the one hand, they’re considering a bill to help one particular
industry that has a lot of star power. 
On the other hand, they’re going to make it massively harder for many
small businesses to create jobs for people on the lowest rungs of the ladder.

“The next
couple of weeks will tell us a lot about how serious they are in Annapolis
about creating jobs for Marylanders.”

For more
information about NFIB please visit www.nfib.com.

 

Related Content: Small Business News | Maryland

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