BY frank knapp, Jr.
SC Small Business Chamber of Commerce

Q: What did a sign say outside the pet shop? A: Buy 1 dog get 1 flea!

Q: Why did the insomniac man get arrested? A: He resisted a rest

Q: Why did the computer break up with the internet? A: There was no “Connection.”

Q: What vehicle has 4 wheels and flies? A: a garbage truck.

Q: Why did the music teacher need a ladder? A: To reach the high notes.

Q: What music are balloons scared of? A: Pop music

Q: What do you call a book that’s about the brain? A: A mind reader.

Q: Who goes to the bathroom in the middle of a party? A: A party pooper.

Q. Did you hear about the party a little boy had for his sisters barbie dolls? A. It was a Barbie-Q.

Q: How does a suit put his child into bed? A: He tux him in.

Q: What’s the difference between a cat and a frog? A: A Cat has nine lives but a Frog croaks every night!

Q: What is a tree’s favorite drink? A: Root beer!

Q: What four letters will frighten a burglar? A: O I C U Q: Where does bad light go? A: To prism!

Q: What do sea monsters eat? A: Fish and ships

Q: I can run but not walk, have a mouth but can’t talk, and a bed, but I do not sleep. What am I? A: A River.

lol = Drowning Man. *lol* = Drowning Cheerleader.

Q: Why did the girl bring lipstick and eye shadow to school? A: She had a makeup exam!

Writing and travel broaden your ass if not your mind and I like to write standing up. - Ernest Hemingway

Leading up to the federal tax law passage, we were told it would help small businesses grow. Lower taxes would enable them to hire more employees and the average family would get a $4,000 raise resulting in more consumer demand.

That was a true formula for a sustainable, growing economy. It didn’t happen.

Yes, the economy is good today for small businesses but not due to the tax law.

It gave most of its $1.5 trillion in benefits to corporations (a 40% permanent tax rate cut) and the wealthy. Corporations used most of their windfall to buy back their own stock to artificially inflate the value of the shares instead of making long-term investments in factories and equipment.

Small businesses got a small, temporary tax deduction. It is so confusing that the IRS hasn’t issued final guidelines for which businesses are eligible or for how much. Plus, tax experts predict that small businesses will have pay up to $2,000 more to tax preparers to comply with the law.

A ZipBooks survey of its 100,000 customers found the tax law had no impact on the hiring plans for 88% of small businesses.

A Bankrate poll found most Americans say they are worse off financially today than they were two years ago.

A Federal Reserve survey found that 40% of Americans are living paycheck to paycheck and can’t cover an unexpected $400 expense. Overall, wages are stagnant.

Now economists predict the sugar high the economy experienced in the first half of the year due to the runup of stock prices and increased federal government spending is coming to an end.

Business investments in the third quarter are the weakest in 2 years. The stock market was down 9% in October and headed for a dismal year. Unemployment is consistently low but down only a couple tenths of a point since the tax law passed. This resulted in mortgage rates rising to a 7-year high and interest on credit cards and other consumer loans climbing.

Now for the worse part: The federal deficit soared by 17% last fiscal year primarily due to corporate tax revenue being down a third and a leap in federal spending.

We don’t have much time to right the fiscal ship, but it shouldn’t be done with Social Security, Medicare and Medicaid cuts which put more money on Main Street.

Congress needs to reverse many tax cuts for corporations and go back to what we were promised – real tax savings for small businesses and working Americans.

Mr. Knapp is the president and CEO of the SC Small Business Chamber of Commerce and co-chair of Businesses for Responsible Tax Reform.