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UNFAIR GOVERNMENT COMPETITION AGAINST SMALL BUSINESS

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Topic: Government & Business

Sort Desciption: All regulations which do not apply to government business entities .... question of whether their business was having to compete with government or tax ...

Content Inside: 1 Number 12-93 July 9 1993 UNFAIR GOVERNMENT COMPETITION AGAINST SMALL BUSINESS By Dennis Polhill Executive Summary Unfair Competition exists when a government or quasi-government entity takes advantage of its tax exemption and other privileges to supply private goods to the market in competition with private suppliers. Unfair Competition adversely effects all Americans. Small businesses are most vulnerable. When jobs are lost the poor the unemployed and women are especially damaged. When private enterprises are replaced with less efficient government enterprises national productivity and competitiveness are adversely impacted. When the tax base is diminished all taxpayers are injured. The Federal government has investigated Unfair Competition frequently since 1980. In 1980 the Small Business Administration did a study which yielded numerous grievous examples and extensive recommended actions. In 1986 a White House Conference on Small Business labeled Unfair Competition as the third most serious concern in the country for small business. In 1987 the General Accounting Office surveyed 27000 businesses nearly two-thirds of which were found to be suffering a degree of Unfair Competition. In Colorado at least 34 industries are currently suffering damage as a result of Unfair Competition from government. Unfair Competition is also perpetrated by quasi- government agencies that enjoy either monopoly privilege tax exemptions or regulation exemptions that are granted by government. Among the steps necessary to a solution are the following: * All regulations which do not apply to government business entities but which do apply to private industry should be either abandoned or enforced uniformly. * Agencies of governments that supply private goods to the market should lose their tax exempt status and other privileges. * Governments should adopt accounting practices and management approaches that reveal more closely the true cost of service provided. 2 INTROD ...

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