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Sam’s Furniture: HIT Suspends Future Hiring and Expansion

My parents founded Sam’s Furniture in 1991 in downtown Springdale, Arkansas, building the business from the ground up through hard work and perseverance. In only a few years, they saw their business flourish as customers showed their appreciation for the quality products and personalized attention our brand is known for. It has since expanded into a second location in Rogers and we are now proud to say we employ more than 50 people.

I’ve taken over as co-owner and general manager since my parents’ retirement, sharing their aspirations to enlarge our business and employ more Arkansans. As our business rapidly grows, I have looked into opening another store in the Little Rock area, which means an additional 30 to 40 employees would be added to the payroll. These jobs would pay above average salaries, provide good bonuses and retirement benefits, and most importantly, offer substantial health care coverage.

Unfortunately, the impending health insurance tax (HIT) has put my plans for expanding Sam’s Furniture into a holding pattern. Starting in 2014, when the HIT goes into effect, my business will be forced to pay tens of thousands of dollars more than in previous years just to continue paying our company’s healthcare premiums. Instead of helping to revive Arkansas’ economy, my business could be forced to consider layoffs in order to cover the cost of new HIT tax. The only thing certain is that we will have to delay our plans to create new jobs and invest in new business right here in Arkansas.

I am part of the 84 percent of small business owners who think the U.S. economy is on the wrong track. Small businesses like Sam’s Furniture are essential to a prosperous economy, but if we implement new taxes like the HIT, they may no longer be profitable.

I am proud of the business my parents and I have built. Sam’s Furniture offers our loyal customers quality furniture at low prices, while giving employees health benefits they can rely on. During Small Business Week, I encourage members of Congress to support small businesses like mine that contribute to the Arkansas economy by repealing the burdensome HIT.

Joe Donaldson
Co-Owner and General Manager
Sam’s Furniture
Springdale, Arkansas