Mount Pleasant businesses doubt HIRE Act approved by U.S. Senate last week

Jobless Michiganders could find themselves re-employed under a tax exemption to small businesses approved last week by the U.S. Senate.

But some Mount Pleasant business officials have their doubts.

The Hiring Incentives to Restore Employment Act seeks to offer small businesses nationwide exemptions from Social Security taxes if, this year, they employ those who have been unemployed for at least 60 days.

“Is this a short-term fix that will affect someone’s Social Security down the line?” questioned Lisa Hadden, president of the Mount Pleasant Area Chamber of Commerce.

About 76 percent of the near 700 members of the chamber are small businesses and would be affected by the act, Hadden said.

Motorless Motion, 121 S. Main St., will not take advantage of the bill if it makes it through Congress, manager Allison Quast said, unless the bill provides enough to pay for someone’s entire salary.

“We’re just a small shop, so it doesn’t matter,” she said. “I cannot afford it.”

Gray’s Furniture, Appliance and TV, 222 E. Broadway St., would not take advantage of the act either, co-owner Rosemary Gray said.

She is skeptical of the bill’s effect and said the store is not looking for more employees.

“Unless you hire someone, you don’t get any tax incentives,” Gray said. “We are so small and we depend on our community to shop in our own community.”

Shirley Bick, manager of Downtown Discount, 104 N. Main St., said the act should have a positive effect on business, but it would not encourage her to hire anyone new.

“It wouldn’t really have any affect on our (hiring practices),” she said, “because we really don’t have the openings now to hire anyone.”

An expansion

The act will extend the American Recovery and Reinvestment Act and businesses will be able to make larger immediate deductions on certain equipment, according to a news release from Michigan Sen. Debbie Stabenow’s office.

This act is designed to help businesses invest in infrastructure that will allow them to hire more workers, the release stated.

“The HIRE Act is the first of many jobs initiatives that will put Michigan back to work during this difficult time,” the release said. “This legislation provides tax cuts to small businesses that hire new employees and make new investments to grow their businesses. It will also expand critical transportation and infrastructure programs that will create jobs while at the same time improve our roads and schools.”

Part of the HIRE Act will expand the Build America Bond program, which provides low interest financing for state and local governments to renovate public buildings like courthouses, schools and transportation infrastructure.