Column for Sept. 10, 2009

I found an article in this newspaper interesting. You, the taxpayers, are paying for local businesses to borrow money for their businesses. To quote the article, "A $75,000 loan fund, made available to the town of Selma through a USDA grant, has made it possible for six Selma businesses to finance their operations in the midst of a tough market." This is not the first such program I have read about here in Selma.

Let me start with this disclaimer. I have absolutely no issue with any business or business owner that would take advantage of a program for them to finance a business. I get it. I was a business owner, myself. I just have a problem with a government that would use taxpayer money for such purposes.

I owned three small businesses that were running concurrently. Two of them were profitable. The third made a profit, as well, but was more of a hobby with which I made a few dollars or did work pro bono. My two main businesses were both at the point where I had to either expand or get out of business, since the growth was overwhelming on one and as a result, the other was being neglected and was more of a nuisance to keep running, though profitable.

I owned a used book business that grew huge on the internet and I really needed to either open a brick and mortar retail location or get some warehouse space. I had more books than the town library stuffed in my home. Like all businesses, the revenue was in direct proportion to the amount of effort expended in the endeavor. Already having a decent full time job, I could not afford the time to make book sales a full time job in addition to my regular one. Unfortunately, my business partner decided to be a slacker and failed to put any appreciable effort into the venture, although it was rather profitable and easy to do. If I had been more engaged full time in that business as a livelihood, I might very well have considered the revolving loan program provided through the USDA grant to the Town of Selma.

I am looking at the US Department of Agriculture web site right now. There are many programs that they administer for rural areas. They are involved in water and environment programs, housing loans, tourism promotion, rural economy loans and grants, utility services, etc.

I have been racking my brain trying to find where the US Constitution authorizes these activities. The 10th Amendment seems to reserve any such things for the individual states. Furthermore, since these programs are administered through the USDA, I am trying to figure out what business development in downtown Selma has to do with agriculture. The last I knew, we did not grow corn, wheat, tobacco, hogs, or cows in antique shops, bridal stores, and furniture factories. Again, it is hard to blame a business for taking advantage of a program. It is not hard to fault a government entity for violating its constitutional authority, forcibly taking billions of dollars of tax money and giving it away to towns, and earmark that money for private enterprise.

From a taxpayer perspective, there is possibly one good part to the program. The money from the USDA is a grant and not a loan to the town. If this were a loan to the town, we would have been taxed on the one end to provide the original funds and then taxed on the other end by the town to pay back the money. Being taxed twice to provide loans to small business is just plain unethical; not that taxing us once for the program is exactly in and of itself ethical, either.

Are you fed up with the level of federal taxation? Look no further than programs such as this. Not every good idea necessarily should be implemented or is fair to all. Multiply this single grant of $75,000 times the literally thousands of rural areas in the country that have similar grants, and we have budgets of billions of dollars. If we are to ever get spending under control on the federal level (not to mention state, county, and municipal levels), then we have to start somewhere. I, for one, am tired of paying for others' businesses and households to operate. I have my own household to keep rolling financially.

When does it all end, people? With how much public debt and taxation are we going to saddle future generations? When are we as a nation going to abide by our own constitution?