The Massachusetts Economic Development Bill passed July 1 does little to encourage or support job creators

by State Senator Bob Hedlund

Instead, the bill expends over $63 million, including over $55 million in direct appropriations, to several government and quasi-government agencies and programs.

While the bill does provide meaningful tax credits for research and development, all amendments designed to reduce regulatory burdens on small business were rejected. The bill reduces no fee or tax burdens on small businesses, and amendments to provide such relief were rejected.

Small business is the engine of economic growth and job creation. In Massachusetts they account for a significant share of the state’s economic production and hiring.

According to the Small Business Administration’s latest Massachusetts Small Business Profile, Small businesses represent 97.8 percent of all employers and employ 46.3 percent of the private-sector labor force. When there is new job growth in Massachusetts, small businesses account for as much as 80% of those new jobs.

Not only are small businesses the creators of most net new jobs, they provide a significant share of the innovation in the Commonwealth.

There is also no explanation of what job skills will be provided in new job training funding or who gets the funding or where those jobs are located.

We are duplicating failed attempts to in efforts to influence private sector job growth.

There has been no quantification of results of job creation from previous “Economic Development” bills, including any results from the 2006 $473 Economic Stimulus Bill (“An Act Relative to Economic Investments in the Commonwealth to Promote Job Creation, Economic Stability, and Competitiveness in the Massachusetts Economy”). The Legislature had also approved $100 million in similar investments two years earlier, but slow job growth was used as a reason to revisit the economic development policies.

We still have no concrete results

The bill we just passed could have been entitled “An Act Promoting Bureaucratic Growth Across State Government”

Nothing in this bill promotes growth in freedom or prosperity. Political directed spending can never duplicate market driven investment. Instead of spending, we should promote growth by allowing business to keep more of its revenues to invest in our economy.

 

© Copyright 2014 Tanna K, All rights Reserved. Written For: Tinytown Unleashed
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