Small Business Owners Call on Congress to Help Main Street Thrive
Small business owners from all over the United States come together every year to advocate for their businesses and promote their concerns to Congress. With the pandemic’s negative impact on the economy and the continued challenges that independent business owners face, congressional action is more critical than ever. In this blog post, we delve deeper into the main issues that small business owners are facing and the policies that Congress needs to prioritize to promote a thriving Main Street.
The Challenges Facing Small Business Owners
Small businesses in the United States face multiple challenges, from managing supply chain disruptions to the increasing cost of doing business. These challenges have left many business owners feeling pessimistic about the future of their businesses and the economy. Some of the common challenges that small business owners face include:
1. Worker Shortages: The pandemic-induced recession caused many companies to lay off workers. However, with the steady economic recovery, labor shortages continue to hinder many small businesses’ growth.
2. Inflation: Small businesses have to deal with rising costs of goods and services, which often translate into lower profit margins. The inflationary pressures from rising supply chain costs have created an additional strain on businesses that are still recovering.
3. Supply Chain Disruptions: The pandemic disrupted supply chains, forcing many small businesses to endure longer lead times, higher shipping costs, and delays in receiving much-needed inventory. Even though supply chain problems are easing, they still persist in various sectors.
These challenges have led to a significant decline in the number of businesses that are optimistic about the economy, making it difficult for many businesses to expand, invest in their employees, and create jobs.
Key Policies to Promote Small Business Growth
To help independent business owners turn things around, Congress needs to prioritize policies that economists and small business experts believe can drive the Main Street’s recovery. The following are some of the actions that Congress will need to take:
1. Pass the Main Street Tax Certainty Act
The Main Street Tax Certainty Act is a bipartisan policy that will make the Small Business Deduction permanent. The deduction is designed to empower more small businesses to fuel the great economic recovery of the late 2010s and weather the worst of the pandemic. By allowing mom-and-pop stores to deduct up to 20% of their business revenue, small businesses can reinvest in their employees and operations. This simple policy brings small businesses closer to tax parity with their large corporate competitors. Without making the deduction permanent, small businesses will face a significant tax increase in the coming years.
2. Promote Competition in the Credit Card Industry
Small businesses are in a disadvantageous position when it comes to the credit card processing networks they can use. Currently, there is no true competition, and they cannot negotiate a better deal. Congress needs to pass the Credit Card Competition Law to help stimulate a competitive market. By allowing small businesses to choose the best credit card processing networks for them, this reform would reduce costs and provide more resources for small businesses to create jobs and give back to their communities.
3. Get IRS off Main Street
The IRS is currently targeting small companies for audits and investigations using $80 billion in taxpayer funds. This is the same agency that cannot process small business tax returns in a timely and efficient manner or provide small businesses with the relief they are entitled to under the law. Congress needs to force the IRS to focus more on education and assistance, instead of treating small businesses like they’re enemies.
Expanding on the Topic
Small businesses play a significant role in the United States’ economy, providing millions of jobs and helping their communities thrive. Even with the many challenges that business owners face, they have continued to drive innovation, create jobs, and promote economic growth.
One of the critical factors that play into the success of small businesses is their ability to adapt to changing conditions. Covid-19 has brought to the forefront the importance of technology in keeping businesses running and communicating with customers. Small businesses that have pivoted their operations and embraced digital tools such as e-commerce, marketing automation, and cloud computing are laying the foundation for long-term success.
Another vital factor that drives small business success is their ability to promote their brand and stand out in a competitive marketplace. Small businesses are increasingly leveraging storytelling through social media marketing and other marketing channels to build their brands, reach new audiences, and generate customer loyalty.
In conclusion, small business owners this year are calling on Congress to help them navigate the current challenging economic environment by passing policies that address their unique challenges and bolster their growth. With small businesses employing over 60 million people in the United States, investing in their success is a smart move for the country’s economic well-being.
Summary
Small business owners from all over the United States come together every year to advocate for their businesses and promote their concerns to Congress. Independent business owners face multiple challenges, including worker shortages, inflation, and supply chain disruptions. To help independent business owners turn things around, Congress needs to prioritize policies that economists and small business experts believe can drive Main Street’s recovery. These policies include passing the Main Street Tax Certainty Act, promoting competition in the credit card industry, and getting the IRS off Main Street. With small businesses accounting for a significant percentage of U.S. jobs, investing in their success is pivotal for the economy’s future.
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This week, small business owners will gather on Capitol Hill as part of the National Federation of Independent Business’ annual Fly-In. They will come from states across the country, communities of all sizes, and from various industries. But his message to members will be the same: Congress must act now to help Main Street.
Small businesses face many major challenges, and Washington isn’t making it easy. Three years after the pandemic began, the entrepreneurial spirit that drives independent business owners continues to bear the brunt of a mismanaged response. The resulting inflation, worker shortages and supply chain problems have left many small businesses pessimistic about the economy and struggling to create jobs, invest in their employees and grow.
This is in stark contrast to what Main Street wants to do: create more jobs, help their communities, and move our economy forward. Small businesses created two out of three new jobs in the last 25 yearsAnd they’re ready if Congress listens to them and enacts policies to unleash the small business economy.
There are dozens of common-sense, bipartisan policies that small businesses need Congress to pass. However, three key actions are especially important.
First and foremost: Main Street needs Congress to pass the Main Street Tax Certainty Act, making the Small Business Deduction permanent. If no action is taken, the deduction will disappear in just two years, and if it does, Congress will be responsible for one of the largest tax increases ever on Main Street.
The Small Business Deduction is a historic federal tax cut for Main Street. Allow mom-and-pop stores to deduct 20 percent of their business revenue, giving them more to reinvest in their employees and operations. This simple policy is designed to bring small businesses closer to tax parity with their large corporate competitors. This deduction empowered small businesses to fuel the great economic recovery of the late 2010s. More recently, it helped Main Street weather the worst of the pandemic.
Small business owners are deeply concerned about what will happen if Congress fails to make the deduction permanent. wall street now received a permanent tax cut to 21 percent. Congress needs to give Main Street something similar by making the Small Business Deduction permanent.
The second reform that Main Street needs is real competition in the credit card industry.
This is a bipartisan issue that has not received enough attention. Right now, small businesses don’t have a choice when it comes to which credit card processing networks to use or the transfer fees to pay to big banks. There is no real competition, and no real possibility of negotiating a better deal.
Congress can correct this error by passing the Credit Card Competition Law. It would give small businesses significant competitive options, allowing them to choose what is best for them. This reform will not only reduce costs. It will also give small businesses more money to create jobs and give back to their communities.
The third big thing Congress needs to do is get the IRS off Main Street.
At this time, the IRS is targeting small companies for audits and investigations using a staggering $80 billion in new taxpayer funds. This is the same agency that is unable to process small business tax returns in a timely manner or provide small business owners with the relief they are entitled to by law. Congress needs to get that $80 billion back and force the IRS to focus more on education and assistance, instead of treating small businesses like they’re the enemy.
The small business owners coming to the Capitol this week need Congress to listen to them. And Congress needs to listen to them, and then act. Small businesses need more than lip service about their importance to job creation and our nation’s economy. They need Congress to help Main Street survive and thrive.
Brad Close is President and CEO of the National Federation of Independent Business.
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https://thehill.com/opinion/congress-blog/4046257-small-business-needs-leadership-from-congress-now/amp/
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