Encourage & Incentivize Entrepreneurs

In the 1990’s, according to a variety of publications, Bremerton was considered to be one of the best places to live in America.  Since then, Bremerton has dropped off of those lists, and hasn’t been able to climb back up that ladder. 

When I think about ways to revitalize Bremerton, I almost always end up concluding that one of the most important keys to achieving this goal is to support our small businesses.  If we had more successful small businesses in Bremerton, it would boost our economy, decrease unemployment rates, and generate additional revenue for the city to use on community improvement.  Once these things start to happen, it will also decrease crime rates and help us climb back up the ladder towards being one of the best places to live in America.

In 2015, I had the pleasure of helping start a new business in Bremerton, it ended up being very successful.  One of the struggles we had to overcome in the first couple years was to figure out the complex tax systems, and work the 46% total tax rate into our budget. 

Being a new business, starting with nothing more than an empty building, we had to purchase multiple computer, security, and point of sale systems, in addition to our inventory costs, employment costs, and everything else.  For a new business, it can be difficult to be profitable for the first few years; this is often why new businesses fail.  Starting a new business can be expensive, and then seeing your taxes for the first time can be very demoralizing.

After seeing the struggle that entrepreneurs had to endure to open a business in Bremerton, it struck me that this is counter productive for a city that wants to revitalize itself.  I spoke to several business owners about how the City Government could help new entrepreneurs; one of them had a great idea that really resonated with me – to waive the first year of B&O tax for new businesses.

This business owner told me that he pays about $3,000 a year in City B&O taxes.  To a new business owner, $3,000 could purchase some new computer systems, hire someone to build a website, purchase additional inventory, upgrade their building, and a whole lot more.

The City B&O tax does not account for very much of the overall city’s revenue, so therefore, waiving the first year of (B&O) Business and Occupation tax shouldn’t have any noticeable negative affects on the city budget; but it could mean the difference between a small business succeeding or failing.

If the Bremerton City Government extends a little more help to those new businesses, it will go a long way towards improving the probability of their long-term success.  When we have a strong small business economy, it will help us revitalize Bremerton and find our place once again as one of the best places to live in America.

If you elect me for Bremerton City Council, District 3, I will do my best to waive the B&O taxes for the first year after a new business opens in our city.

-John Johanson

Bremerton City Council, District 3 Candidate

Vote for me in the Primary Election, before August 3rd, 2021