PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Letter to U.S. House: Vote NO on the $3.5 TRILLION Budget Resolution

By at 24 August, 2021, 2:28 pm

August 24, 2021

Dear Member of the U.S. House of Representatives:

The Small Business and Entrepreneurship Council (SBE Council) strongly opposes the partisan $3.5 trillion budget resolution that will soon be considered by the U.S. House.  The massive package is a tax-and-spend blowout that does not serve the interests of small businesses and entrepreneurs. Higher taxes and inflation-fueling government spending will drive uncertainty, hardship, and make it more difficult for struggling small businesses to recover from the pandemic.

SBE Council urges you to vote No on S. Con. Res. 14 – FY22 Budget Resolution.

Small businesses and the economy remain in a fragile condition, and $3.5 trillion in new spending and taxes will not make conditions better. Taxing businesses at a time when they need all of their hard-earned capital to deal with inflation, labor shortages, the supply chain mess, and the big surge in COVID-19 cases – which could soften demand further – will not help the economy “Build Back Better.” Again, massive government spending and new taxes will trigger great uncertainty, which will lead to less investment and job creation and more business closures.

Small businesses are not even close to recovering from the effects of the Great Shutdown. They are still digging out. McKinsey recently reported that it took an average of six years for small businesses to recover from the 2008-09 recession, and it could take them even longer to recover from the pandemic. In fact, both small and large businesses needed significant time to recover from the great recession, and the effects of the Great Shutdown could test business resiliency even further. Not surprisingly, 65% of small business owners in a mid-July survey released by SBE Council and TechnoMetrica said that tax hikes should not even be on the table until the economy fully recovers, and 61% reported that new taxes will hurt the recovery of their firms.

Unfortunately, the surge in COVID-19 cases and a threatening policy landscape is eating away at the confidence of small business owners. A Wall Street Journal/Vistage survey finds small-business confidence plummeting in August. Only 39% of small business owners expect economic conditions in the U.S. to improve in the next 12 months, which is DOWN from 50% in July and 67% in March.

Now is not the time to be raising taxes! Hitting small businesses with higher taxes now – rather than supporting their recovery with certainty and relief – will drive confidence lower and more small businesses out of business.

Small business owners greatly fear both the unintended consequences and tax increases that will be generated by the possible enactment of the $3.5 trillion spending package. This tax and spending splurge will make running a small business much more burdensome, not “better.” We have urged Congress and the Biden Administration to take a restrained approach to policy, especially now given the surge in COVID-19 variant cases and the unknowns yet to come in terms of where this pandemic will turn next.

Again, SBE Council urges a No vote on the $3.5 trillion budget resolution. Thank you for your consideration of our views and support of small business America.

Sincerely,

Karen Kerrigan, President & CEO

 

 

 

 

 

 

 

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