Kilmer: “We’re starting to hear from businesses that are actually OK”

Sen. Derek Kilmer is testifying to the House Finance Committee on the bill to create a Business and Occupation tax credit of up to $4,000 for small businesses that create new jobs.

Kilmer said he’s just “starting to hear from businesses that are actually OK” and want to do more hiring, but read in the papers that the economy is still bad. He said this credit could help spur job creation.

He read from several economists’ reports that endorsed similar plans because the tax credit pays for itself — when a new job is created, the new wage-earner pays more in taxes and the economy improves. Plus, he read, that wage-earner is no longer depending on the state for services (like unemployment benefits).

He said one critical portion of the bill is getting the word out: He said if people don’t know about the credit, it won’t change behavior.

Susan Suess from the Economic Development Board for Tacoma-Pierce County, said the B&O tax is most difficult for startups and businesses that are trying to grow. She said this bill would help both of those types of businesses. She also said it could really help Tacoma.

“We believe very strongly that economic growth is centered in the private sector,” David Graybill with the Pierce County CHamber said. “This B&O tax credit has been very carefully crafted” to consider businesses and families. “It’s unusual that we’re looking for incentives from the state,” he said — generally, businesses just want the state to stay out of the way.

Tags: tax credit