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Ehrlich pledges new attitude for small businesses

Smallbiz.jpgFormer Maryland governor Robert L. Ehrlich Jr. (R) pledged Monday that small businesses would once again come to see state regulators as "their partners, not their sheriffs" if he returns to office next year.

Ehrlich promised the "fundamental shift in attitude" as he stood in a Gaithersburg pizzeria that served as a backdrop for the announcement of his first policy proposals since launching his bid two months ago to win his job back from Gov. Martin O'Malley (D).

As part of his "Entrepreneur Agenda," Ehrlich said he would set up task forces to review business regulations and health-care mandates and that he would make several changes to the unemployment insurance system, including a possible repeal of benefits for part-time employees championed by O'Malley.

Ehrlich also repeated a pledge from his announcement speech to roll back an O'Malley-backed increase in the sales tax and said he would appoint another task force to look at lowering the corporate income tax rate, with an eye toward being more competitive with Virginia.

"We have small-business people in the crosshairs of state government," Ehrlich said. "Small-business people have been crying out for leadership."

An O'Malley spokesman immediately dismissed Ehrlich's plan as "all talk and no action."

"He is proposing a commission, a summit, a task force, three reviews and two explorations, but nothing to actually create jobs or help small businesses struggling because of the global recession," said Rick Abbruzzese, a deputy campaign manager for O'Malley. "This lip service is insulting because Maryland's small businesses and families expect and deserve more from a former governor."

O'Malley has also made small-business issues a focus in recent months, including lobbying the legislature to pass a new tax credit for employers who hire workers off the unemployment rolls.

Ehrlich said his proposals grew out of a series of visits in recent weeks to small businesses across Maryland and include some new ideas as well as some practices that worked during his previous term, which ended after his 2006 defeat by O'Malley.

Among the new initiatives: quarterly roundtables, at which Ehrlich and legislators could hear directly from small-business owners about their interactions with state government. Ehrlich said he wished he had engaged legislators in a similar fashion during his previous term, saying many lawmakers lack an understanding of the rigors of running a business.

Ehrlich acknowledged that some of his plans -- including rolling back the sales tax from 6 percent to 5 percent -- would require "heavy lifting" to win approval from a legislature that will almost certainly still be dominated by Democrats after the November election.

But Ehrlich said other parts of his plan can be accomplished through executive action. "A lot of this is unilateral. A lot of this changes day one," he said.

He promised that a "Small Business Bill of Rights" would be developed to ensure agencies are "fair, timely and predictable in their disposition of small business matters." While businesses would be expected to follow the law, regulators would work with them, not against them, Ehrlich said.

Ehrlich said he would also offer commissions to state business recruiters based on the companies they attract to Maryland. He said he would appoint high-level "expediters" in key departments to assist businesses and create a "knowledge desk" to help small businesses.

Among the more controversial measures proposed by Ehrlich were changes to the unemployment insurance system. Many companies saw a threefold jump in what they must pay this year.

The increases are largely the result of a recession-sensitive formula that was signed into law in 2005 by Ehrlich -- a fact he has glossed over while discussing the issue with irritated business owners.

Ehrlich said Monday that he is open to convening another commission to look at the formulas.

In the meantime, Ehrlich said he wants to require that lower-court appeals of workers' benefit eligibility be completed within 30 days. Employers currently report having to wait four to six months for a judgment on appeals, during which time they are paying taxes on disputed cases, Ehrlich said.

Ehrlich said he would also "explore" repealing an O'Malley initiative that made part-time workers eligible for unemployment benefits. Ehrlich said that decision, approved by the legislature, has "dramatically increased (unemployment) payments for small-business owners." O'Malley administration officials said the impact has actually been nominal to this point.

Such a repeal would probably also jeopardize an infusion of federal funds that O'Malley secured this year that is providing some temporary relief to employers.

Ehrlich is scheduled to repeat his announcement Monday afternoon at a crab house in Reisterstown.

By John Wagner  |  June 7, 2010; 12:45 PM ET
Categories:  2010 Elections , John Wagner  
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Next: Murphy: No study needed, scrap the corporate tax


The GOP always talk small business during a campaign, but once in office they take care of big business.

Posted by: jckdoors | June 7, 2010 1:53 PM | Report abuse

Are we sure Ehrlich isn't from Moco? I mean setting up task forces to study a problem, that's classic Moco...paralysis by analysis.

Posted by: VikingRider | June 7, 2010 2:37 PM | Report abuse

So Bob really didn't say he would do anything new - just set up commissions to study what he MIGHT do in the future. The only thing Bob said he would do is repeal the sales tax, and Bob has still neglected to explain how he will pay for such a move. How can anyone buy into this nonsense?

Posted by: jim85 | June 7, 2010 5:36 PM | Report abuse

Repealing the sales tax is a start. O'Malley is going to raise our taxes.

Posted by: cheverly1 | June 8, 2010 6:25 AM | Report abuse

Cheverly: It would be great not to have the sales tax that cost 1 penny for every dollar. That's 1 dollar for every 100 dollars...but that's the point of jim's comments. Ehrlich has failed to explain how he will make up the difference if the sales tax is repealed.

Posted by: hamsandwich | June 9, 2010 7:04 AM | Report abuse

Hamsandwich: What people like you fail to understand is the that to a person earning $40,000 who has to buy food for a family that $1.00 means a lot. As far as how to make up the difference that's easy, do what most people do when you don't have the money to cover expenses cutout what you can no longer afford

Posted by: cheverly1 | June 9, 2010 9:56 AM | Report abuse

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