Dawn Starns, state director of the National Federation of Independent Business, made the following statement today in advance of Governor Edwards’ State of the State address:
“Our members appreciate Governor Edwards taking the unprecedented step of making a State of the State address. People need to understand the governor’s position on the challenges we face.
“However, our members believe the governor ought to present a reformed state budget to the Joint Legislative Committee on the Budget this weekend.
“Small-business owners know how hard it can be to cut budgets, reduce hours, and lay off employees in order to keep the doors open, but we think the scare tactics associated with the budget discussions, like closing LSU and cutting funding for developmental disabilities services, aren’t where we need to be as a state.
“Our members recognize that a broad-based approach to tax increases may be inevitable. However, we look for Governor Edwards and the newly-elected Legislature to show some leadership in their approach to operating the state.
“Pushing off revenue-raising measures to small business would only make things worse, not better.
“The state economist has said that Louisiana is entering a recession, which will put mom-and-pop businesses in a precarious position. Uncertainty of new mandates like increasing the minimum wage and new avenues to bring frivolous lawsuits associated with equal pay as proposed by Governor Edwards, expanding Medicaid, and new taxes will trigger a ripple effect in the economy.
“The backbone of Louisiana’s economy is its small, family owned businesses and this pile on will certainly force some out of business if they don’t have tools available to them, like the net operating loss exemption. We know businesses are facing losses and will face more as the recession deepens.
“Before the governor and the Legislature consider a tax increase that would make it harder for small businesses to stay open, let alone create jobs, they need to look at budget reforms and bring spending under control.”
NFIB/Louisiana is the state’s leading small-business association, with over 4,000 dues-paying members representing a cross section of the state’s economy. To learn more visit www.NFIB.com/LA or follow @NFIB_LA on Twitter.
