Business reacts to Obama’s tax plan

MOBILE, Alabama (WALA) - President Obama’s proposed tax reforms would benefit the middle class and small business the most. What do small business owners think about it?

Ralph Atkins has seen good times and bad. Next month will mark 77 years Southern Fish and Oyster Company has been doing business in the Port City. For him, business has been way down and not just in the last few months.

“A lot of what we’re going through right now, never mind the oil spill, a lot of it was just economy,” said Atkins. “It was slowing down. Restaurants, people were not going out to eat as much. My wholesale account restaurants were hurting.”

President Obama’s tax plan to stimulate the economy includes extending tax cuts to the middle class. Atkins believes that would be a step in the right direction.

“That would help more than anything because those are the people that come out. They go out to eat once or twice a week at restaurants and real rich people it doesn’t matter to them. They’re going to still do what they want to,” said Atkins.

Another part of the President’s overall plan would permanently expand and extend a research and development tax credit for businesses. It would allow businesses to write off 100 percent of their investments in equipment and plants through 2011.

Before Hurricane Katrina, Atkins had a large freezer in the rear of his shop. Insurance didn’t cover its loss and this tax credit may allow him to replace the expensive piece of equipment.

“It’s probably a fifty or sixty thousand dollar cash outlay right of that and if I could get some sort of a credit on it, it would be great,” Atkins said. “It would help justify spending it.”

As good as it may sound, the bottom line for Atkins and Southern Fish and Oyster Co. is there has to be a profit. He says, without a profit, there’s nothing to be taxed anyway.