Wed
Apr 19 2006
11:32 pm
Minorities take advantage of economy
By: RedDog

Yet another metric of the success of lower tax rates? I suspect so.... 

WASHINGTON — Black-owned businesses are among the fastest-growing segments of the American economy, the government said Tuesday.

The number of black-owned businesses grew by 45% from 1997 to 2002, more than four times the national rate for all businesses, according to a Census Bureau report

Revenues from black-owned businesses increased by 25% during the period, to about $89 billion.

However, nearly all black-owned businesses are small: 92% had no employees other than the owners. By comparison, about three-fourths of all U.S. businesses had no employees.

"We do have challenges. We are making progress," said Ronald Langston, director of the Commerce Department's Minority Business Development Agency. "This is the real challenge: to move these smaller businesses into the next step of growth."

The report is the third in a series of Census reports on businesses owned by women, Hispanics and blacks.

Together, the reports show that the three groups are underrepresented in business ownership but are narrowing the gap with white men.

Topics:
Brian A.'s picture

What lowered tax rates are

Submitted by Brian A. on Thu, 2006/04/20 - 1:16am.

What lowered tax rates are you referring to?  Note that the survey measured from 1997-2002.  So anything after 2000 wouldn't have had much time to make an impact.

Also what's the correlation between a particular lower tax and more black businesses?   Wouldn't it equally benefit whites?

Brian A.
I'd rather be cycling.

WhitesCreek's picture

Pretty much, the Clinton

Submitted by WhitesCreek on Thu, 2006/04/20 - 8:08am.

Pretty much, the Clinton years...Wonder how it's going right now?

 These stats are dredged up and passed around by a GOP p.r. firm everytime things get really bad for Bush. Expect to see tons more of them as we get closer to the Election.

 Steve

R. Neal's picture

I've never bought the

Submitted by R. Neal on Thu, 2006/04/20 - 8:26am.

I've never bought the argument that cutting taxes stimulates new business development.

People with the drive and ambition to become entrepeneurs aren't siting around thinking "Wow, they just cut taxes! I think I'll start a business to take advantage of paying less taxes! I wonder what business I should get in to?"

Taxes are just another expense on the operating statement to deal with and factor in to the business plan. True, there may be some business for which demand is so low and margins are so thin that a few points on taxes one way or another might make them profitable or not. That would generally not be a good business to get into, regardless of taxes. I seriously doubt that's the case for most other businesses, though.

Sure, nobody wants to pay more taxes than they have to. The problem is, big corporations and the wealthy who can afford slick accountants and tax laywers don't think they should have to pay any. Everybody thinks somebody else ought to pay.

But mostly, businesses aren't in business to pay less taxes. They are in business to make more money. The more money they make, the more taxes they pay. That's a good problem to have. If they wanted to lower their taxes, they could make less money. Or they could pay no taxes at all by just going out of business.

smalc's picture

Totally off topic...

Submitted by smalc on Thu, 2006/04/20 - 8:49am.

But can I vote for "metric" being the most overused term of the year? Until recently I thought it referred to the SI system of measurement. Stupid me.

Eleanor A's picture

No income rates

Submitted by Eleanor A on Fri, 2006/04/21 - 9:44am.

Notice McPaper provides zero statistics on the income of these so-called businesses. So, squeegee guys down on Beale Street might be included.

Yep. I'd have to agree - another desperation flare shot up by BushCo. Isn't it wonderful to see them on the defensive?

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