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White Castle V.P. Jamie Richardson, Tasti D-Lite CEO Jim Amos and FastSigns CEO Catherine Monson on what is needed to boost job growth.
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All right we are back now with -- -- executive roundtable Jim Amos chairman of tasty delight planet's movie.
-- months of the CEO fast signs it Jamie Richardson vice president of white caps -- I want to get back to what we're talking about Catherine you're talking up being afraid to speak out.
From the backlash either from customers or your social media or from the government or just groups that support them.
Fred -- at FedEx is doing.
Exactly the opposite in my -- he's somebody who's been a champion of free enterprise in the past but he's out now saying that there's a lot of mythology in Washington.
Going on to say.
The vast majority of jobs in the United States are produced by capital investment and equipment and software not small business.
It's done by big business and he's trying to make the point that there's a lot of mythology in Washington about.
Rising taxes.
Eliminating jobs and that is just not the case.
And I aren't you do you believe he believes -- At urge you think he's saying it to -- and you know tow the party -- make everyone happy.
Well I can't speak for him but I'm gonna respectfully disagree.
According to the US Department of Labor 65% of all net new jobs come from small businesses.
I don't know where he's getting his facts but I happen to know.
Let's talk about the UPS stores -- competitor FedEx -- they've opened over a hundred new franchise locations this year.
Each one of those locations hires three to five employees that's 300 to 500 new jobs from small businesses.
I don't know that FedEx has hired that many people this year -- I want to ask you because you know Fred Smith.
I mean what what do you what do you think about this comment.
Well first of all I've known Fred for I don't know thirty or forty years we were in the marine -- together and Vietnam together and of course running mailboxes and later the UPS store.
FedEx was a vendor partner.
They're very few people -- respect.
More in business and Fred.
And by the way he's -- gonna -- anybody's.
Party line I don't say this.
Fred did.
I mentioned earlier that that all businesses not equal.
And Fred talks about big business being the engine.
Of the train that runs commerce in America and and those that they the the small cars in the caboose a small business.
But is -- pointed out that is exactly.
Where close to 70%.
The jobs in America are created.
And all of these small businesses have the desire and dream and believe to become the big businesses are the fedex's of the world.
I don't think Fred's wrong I think he's speaking about job production from the type of a viewpoint that he has.
But I also think that that speech is exactly what's wrong with -- with not having small business at the table in Washington.
Get this job council.
Because it is -- intuitive nor do they understand the heart month end of the entrepreneur.
And what either depresses that job growth -- creates a robust view to job growth.
Yeah -- -- in the point of what he was saying with that raising taxes he's trying to justify right.
The believe that raising taxes will not cost jobs do you think.
That raising taxes will cost America jobs.
Both.
Absolutely positively wanna kill jobs -- taxes that will happen overnight.
You know we've got some great research from -- enterprise USA.
And that shows that 75% a new jobs are created by family businesses a lot of those Stanley businesses are pass through corporations so.
When those marginal income tax rates go up the first thing they do.
Is they have to cut employment or -- freeze hiring plans and does so it's a real world.
Impact Catherine I want to ask you taxes going up what is the impact one way or the other on your business.
Well let's talk about my fast signs franchisees and I'm -- -- agree with Jamie 97% of our franchisees are subchapter S -- LL season so they're paying.
There business income tax on their personal tax return.
And 250000 dollars may sound like a lot of money if it's a salary but if that's your business you're gonna put it besides paying the mortgage and putting food on the table.
You're also going to reinvest.
But if part of that dollars are now being spent on higher -- -- you're not going to use those those taxes go up.
Our costs are franchisees customers or small businesses they're gonna have less money to spend.
Because there also passed through entities so they're going to be buying less from our fast signs franchisees.
As taxes go up on on middle income people if that happens because of going over the fiscal cliff yeah they'll be spending less money at the cash register so there are.
-- the businesses they buy from will be buying less from fast side.
Say -- alright thanks to all three of you you are fantastic round -- I wish we had more time promise me all come back.
Then come back not wearing a good thanks so -- and you just.
