Small Businesses Ask for Incentives from Candidates for Governor

The Democrat in the race for governor told small business owners Tuesday he wants to give them tax breaks for creating new jobs. Republican candidates say the money isn’t there.

At a candidate forum organized by the National Federation of Independent Business, Jackson businessman Mike McWherter says he’s willing to go out on a limb.

“I am the only candidate who has been talking about reducing taxes for those companies that are adding employees and giving them that incentive.”

McWherter contends job tax breaks would pay for themselves by stimulating business investment and consumer spending. But Congressman Zach Wamp of Chattanooga says it’s no time to back off on taxes when the state faces massive spending deficits in the coming years.

“Right now, frankly, there’s just no money in the budget.”

As governor, Wamp says he would instead focus on reducing paperwork and cutting red tape. When state coffers aren’t so stretched, he says he’d get rid of the inheritance tax which often hits small businesses.

Knoxville Mayor Bill Haslam told the NFIB that Tennessee has hit “homeruns” in recent years recruiting large industries but now must focus on small business.

“The world is changing, and if we’re going to be a leader in job creation, we’re going to have to focus on a lot more of the ‘singles and doubles,’ if you will.”

A Haslam spokesman adds that tax breaks can only come after the state gets out from its financial straits. State Senator Ron Ramsey did not participate in the forum but has previously said the state can’t afford to be “giving away the farm.”

Early voting in the primary continues through Saturday. Election Day is August 5th.