Thought of the Day - 02/08/2010

Governor Patrick and Senate President Murray appear poised to offer a plan they say would help grow jobs here, according to a story in today’s Boston Globe.

Growing jobs in Massachusetts should be our state’s top priority. But you have to wonder… isn’t this plan a day late and a dollar short?

The plan under discussion would create a $50 million small business tax credit, it would make $25 million of small business loans available, it would freeze unemployment insurance rates, and it would merge together several state agencies that deal with small business issues.

I give this plan some credit because these ideas all seem worthwhile to consider. There’s no question that our state needs to do something to help job growth, particularly when it comes to the small businesses that serve as the lifeblood of our economy. And I am always happy to hear of proposals to merge responsibilities in state agencies as a reform that would save us money and increase efficiency.

But it’s also worth considering that these modest proposals come on the heels of other recent decisions that have put a stranglehold on businesses here. For example, we have levied hundreds of millions of dollars of additional corporate taxes from businesses here in recent years, increases that Governor Patrick proposed and the Legislature approved. The same goes for recent hikes in the sales tax, which makes it difficult for businesses to compete in the same way that it increases costs for individual consumers.

There is no question in my mind that these tax increases, along with other business-unfriendly policies, have forced businesses and their jobs out of Massachusetts. The latest plan from Governor Patrick, however good it might be, probably won’t be enough to get those jobs back here.

So, while I applaud these most recent efforts, I have to stop and wonder if these are really heartfelt efforts to grow jobs in Massachusetts, or if they’re just window dressing on an otherwise crucial problem our state is facing. I guess only time will tell.

What do you think? Would passing these proposals make Massachusetts friendly enough for businesses to grow jobs here, or is this plan just a glimmer of hope? Please post a comment below and let’s get a discussion going.

Thought of the Day - 01/15/2010

There is news in the Boston Globe today that the state’s Health Connector is taking over administering health insurance plans for about 17,000 small businesses. These businesses typically employ fewer than 5 people, and they formerly looked to a private agency, the Small Business Service Bureau, to help them administer health care costs.

It’s reported that the move could save these private employers about $300 a year in health care costs for each employee. And in this economy, those are welcome savings.

But the fact is that there are many costs that are straining small businesses these days, and our state simply isn’t doing enough to make life easier for them. And that’s unfortunate, because small businesses form the backbone of our economy.

Massachusetts needs a pro-business mentality if we hope to keep people from leaving this state, much less if we hope to attract economic activity. The number one problem facing Massachusetts residents these days is a lack of quality jobs, and our state needs to be taking the lead in creating opportunities for job growth here. And that’s true whether you’re talking about a Fortune 500 company or a budding entrepreneur starting their own business.

What do you think? What do you think our state should be doing to grow jobs? Please post a comment below and join the discussion.