What is the economic engine that provides the jobs and revenue that makes Albert Lea a great place to live? We are blessed with good schools and local government, but are they the economic engine? They do provide jobs for employees who pay taxes, but where does the revenue come from to pay for the jobs that need government workers to provide services? The economic engine runs because of our farmers, manufacturers and other businesses. These farmers and businesses provide the jobs necessary to pay the income, sales and property taxes that finance our schools, city and county government.

So many times we put the cart before the horse. We place government ahead of our farmers and businesses. Government can only exist if we have a robust private economy where it can hire people and pay good wages so that these people, in turn, can pay taxes to support the services that are needed

Let’s look at the risk small entrepreneurs have to take. First they need the capital to start the business, whether it is buying a farm, a building or equipment. That generally means going to the bank. The risk is usually great, the result being they have to pledge all their assets to cover the loan, which may exceed several million dollars. Next they have to find operating capital so they can buy inventory, pay their employees and bring their product to market. If they are successful, the government asks for a big bite out of their profit. The amount the business can pay its employees or whether it has enough money to grow and expand depends upon how much the government demands in taxes. There is real risk in owning a business, and there should be substantial reward.

Locally, there are businesses that pay more that $200,000 in real estate taxes. Our car dealers pay a combined real estate tax exceeding $200,000 to fund our schools and local governments. Yet we have people shopping for their cars out of town. This is difficult for me, who loves Albert Lea, to understand. We take great pride in having attractive city and county buildings and a new high school that is second to none.

Everyone living in Albert Lea needs to realize that it takes tax dollars to build and maintain these facilities. It is easy to turn to the business community and ask for more tax dollars. They appear wealthy and are a small number of voters. Every business knows it must pay taxes for the government services provided — but every tax dollar taken reduces the amount the business can pay to employees and it reduces its ability to grow and expand.

How does it affect the private sector every time the public sector asks for higher taxes? The private sector can only respond in three ways:

1. Increase prices.

2. Cut expenses.

3. Try to get more market share.

In a time of recession, it really has only one strategy it can follow. That is to cut expenses. Businesses must either cut employees or reduce compensation. These are painful decisions. I know one business that asked its employees what action it should take. All the employees decided to take a reduction in pay.

Today, we see the federal and state government increasing spending with the idea that they can get more tax dollars from the private sector. More debt and bigger bonding bills is not the answer. Government must take the same action that businesses take. Reduce cost and become more efficient.

As taxpayers and voters, we must pay attention to how our elected legislators and congressmen and women are voting, to how those dollars are being spent. Our government is our responsibility. Let’s communicate the things we approve of and those with which we differ. This is my point of view.

Al Arends is a co-chairman in the Freeborn County Republican Party.