Watertown— Today in Washington President Obama held an anticipated news conference addressing the soon to expire Bush-era tax cuts. President Obama opened with, “First of all I want to reiterate what I said on Friday. Right now our economy is still recovering from a very deep and damaging crisis, so our top priority has to be jobs and growth.”
President Obama stated that he will be meeting with CEO’s from some of the largest companies and that both Republicans and Democrats agreed on the formula for successfully reducing the deficit:
“As I said before, I am open to compromise and I am open to new ideas. And I have been encouraged over the past week to hear Republican after Republican agree on the need for more revenue from the wealthiest Americans as a part of our arithmetic if we are going to be serious about reducing the deficit.”
President Obama’s plan to tax the highest income earners, means those that make $250,000 a year will be taxed higher. ABC50 spoke with one small business owner Michael A. Colello owner of Frontenac Crystal Springs, the only bottling water company in the area.
Frontenac Crystal Springs is a business that has been in the Colello family for more than 30 years. Colello says- stiff New York regulations and the cost of health care are just some of the costly reasons his business has had to take a new direction. Cutting debt and cost due to a competitive water business, slow sales, and high regulation costs- Mr. Colello was forced to take measures that would reduce spending. Selling water delivery routes in Jefferson and Lewis counties to distributors based in Watertown, Connecticut. Mr. Colello reached a deal with Crystal Rock Water at their regional Syracuse office, as Crystal Rock has been established since 1914.
Colello told ABC50 on the highly debated tax hike for those making $250,000 a year or more. “I have heard conflicting stories where taxing the wealthy will be effective or not.” An open supporter for Romney, Mike Colello continued, “Who is the person that is going to pull this together? That’s why I thought the Republican candidate- Mitt Romney would have been more successful at this.”
Colello told ABC50 that, there has to be cuts and a reduction in spending. He stressed that Democrats need to stop spending and if they do not agree to a significant spending reduction, then Democrats and Republicans will be in a stalemate. Mike Colello, a small business owner that may in fact be affected by the tax increase said that he doubted President Obama would consider $250,000 a year as wealthy, “I think $250,000 a year isn’t considered wealthy anymore. I think the wealthy thresh hold will be higher to $500,000 a year.”
Mike Colello stated that since he has cut spending in his company, things have been better. Colello echoes the same concerns that most small business owners have, the hope that President Obama’s new tax increases on higher income earners will in fact benefit the middle class and not hurt small business owners.