Last week, New York’s own Hofstra University was home to the final presidential debate of the 2008 election. Just after nine o’clock, two men, Senator Barack Obama and Senator John McCain walked onto the stage, prepared to give a viewing audience of just under sixty million their last long look at the man who will become the next President of the United States. Two hours later, the political pundits were abuzz with commentary about the man who stole the show. However, it was neither candidate who drew their post-debate attention. Joe Wurzelbacher, better known as “Joe the Plumber” was rapidly becoming the overnight sensation America’s media circus craves.
No, Joe does not really live in Queens, New York, but he could. Joe, who hails from Toledo, Ohio and dreams of owning his own business, could just have easily been from Whitestone, Howard Beach, Astoria, or any other neighborhood in our borough.
McCain used Joe to criticize Obama’s tax plan, claiming it would hurt small business owners who make more than $250,000 a year. McCain, however, neglected to mention that Joe does not own his own business and even if he did, he would not see a tax increase under Obama’s plan, which provides a tax cut for the 95 percent of Americans who earn less than $250,000 and an increase for the top 5 percent. McCain also failed to mention that Obama’s plan won the support of the United States Chamber of Commerce, not normally an ally of Democratic candidates. But all facts aside, as they often are in political campaigns, if Joe was a small business owner, like the many who call Queens their home, what can be done by New York’s elected officials to ensure their survival during the financial crisis?
The Mayor and City Council have discussed the possibility of being forced to rescind the 7 percent property tax cut they passed two years ago if the financial crisis continues. I propose an alternative: keep the cut in place for commercial property taxes for small businesses that employ a requisite number of workers and do not outsource any means of production to companies outside of the state.
This would allow the small business owners to keep their workers employed without having to increase prices on goods for consumers. Safe from the burden of property taxes, small businesses would be empowered to grow, hire more workers and produce more goods which would keep prices low because of the pro-competitive rules of supply and demand. The Council, which establishes property tax levels, has authority to enact such a measure and possibly save the livelihood of thousands of small businesses throughout the five boroughs.
Many small businesses find it difficult to provide health insurance for their workers because of the high cost. The State Legislature could lessen the burden by creating small business healthcare associations through which small businesses could pool together and purchase a state-run policy for their workers. Because there would be more participants than if the businesses did it on their own, premiums would drop and more businesses could provide coverage for their workers at a lower cost. A healthier workforce is good for productivity and allows employers to retain the workers they spent time and money training.
Lastly, one of the most difficult obstacles for small business is obtaining capital for expansion. Through a joint city-state endeavor, small businesses could obtain low-interest loans with the city and/or state as co-signors. Those businesses that have a proven track record of solvency would be eligible for the loans to be used for business expansion if they met certain criteria and pledged to maintain a pre-determined number of employees. A successful expansion would bring money back into the city and state through tax revenue, create more jobs and encourage other businesses to grow (thus employing more people) or lower their prices to the benefit of consumers. Promoting economic vitality through a private sector-public sector partnership has been a successful remedy in the past and can be again.
Like most media sensations, the fifteen minutes of fame for “Joe the Plumber” are almost up, but his story is one we will see time and again as economic trouble mounts. Real people with real problems need real leadership from if our story is to have the type of ending that would make Hollywood proud.
NEWS & NOTES:
The powerful healthcare workers union 1199 SEIU endorsed Senator Serphin Maltese in his race with Democratic challenger, City Councilmember Joseph Addabbo.
Thursday, October 23, the City Council is expected to vote on the term limits legislation which if passed and signed into law would extend the number of terms for city elected officials from two to three terms.
