As we watch our nation’s economy taking baby steps towards turning around, there is still a lot of talk regarding stimulus packages. While the politicians argue the merits of one package over another, I know of a stimulus package that’s been in place for years. The one I’m thinking of continues to reap benefits, benefits that bear talking about again and again… It’s the TASC AgriPlan and BizPlan stimulus package of course! This tried and true approach is based on saving tax dollars for self-employed individuals and small business owners.
It’s long been known that every dollars that comes into a local economy produces more than just a dollar’s worth of benefit to the community before it leaks back out. Simply stated, every dollar created by a locally-owned business will turn over many times within that same local economy. This “Multiplier Effect” purports that a dollar spent at a local business will stay in the local economy for quite awhile. For example, spend $1 at the corner grocery store, and that dollar will have a good chance of being spent at another local shop; from there it may be used at the farmers’ market before making its way to the local movie house. Besides turning over as many as six times in the local economy — thereby helping three to four businesses — that dollar is paying local employees, consumers who will in turn put money back into the local economy.
Now, let’s look at the impact AgriPlan and BizPlan can have locally. The average AgriPlan and BizPlan Client saves $3,000 in taxes just by participating in the Plan. That means $3,000 extra dollars are available to that small business owner to spend. The business owner may use some of that savings to pay vendors (most likely other small local businesses) for products and services they use in their business. They may use some of the savings to pay wages to an employee, who in turn spend some of the wages locally. And finally, some of that tax savings is spent by the business owners for their own personal needs.
Some economists figure that original $3,000 in tax savings will turn over as many as six times, with the potential multiplier effect climbing to $18,000. That’s $18,000 fueling the local economy. And that’s from just one AgriPlan or BizPlan Client saving the average amount. Now, add several more Clients in one geographical area, and take into consideration the reality that some will save substantially more than the average Client. I’ve done the math … it’s easy to see what an impact this could have on a local economy. Now if that doesn’t help Main Street, I don’t know what will!
TASC CEO Blog 