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Survey: Tax Cuts, Not TARP, Are the Answer

February 17, 2009 By: Travel Agent Central Contributor


Many small business owners disagree with the U.S. government’s allocation of funds from its Troubled Assets Relief Program (TARP) and think tax cuts are a better way to stimulate the stalled economy, according to a survey released on Monday by online payroll service SurePayroll.

“Small business owners are screaming for a different solution," said Michael Alter, president of Glenview, IL-based SurePayroll, which conducted the survey this month. "They know firsthand the challenges their businesses are facing, and have seen no relief from Washington."

Nearly three-quarters of the survey respondents disapproved of TARP, which was set up last year to funnel $700 billion to financial institutions hurt in the subprime mortgage crisis. Survey respondents blamed Congress, U.S. Treasury Secretary Henry Paulson and lobbyists for the mishandling of TARP disbursements. Only 3 percent deemed TARP effective.

Nearly three out of four small business owners think the government should take a different approach to boost the economy, with about half saying the answer is to cut taxes. Other suggestions included:

 • A massive stimulus program (11 percent).

 • Easing the small business health care burden (10 percent).

 • Forcing banks to lend money (9 percent).


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