PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Build Back Better? For Small Business It Could Mean “Build Back Never”

By at 18 November, 2021, 5:50 pm

Dear Member of the U.S. House:

“Build Back Better” (BBB) is a bad deal for American taxpayers, small business owners, and our economy. This massive tax and spending package is irresponsible, as our economy is flailing through record inflation and as our small businesses desire stability through responsible policy. The Small Business & Entrepreneurship Council (SBE Council) urges you to VOTE NO on the BBB package.

The gimmicky BBB creates deficits and will add to government spending woes in the not-too-distant future, which will inevitably lead to more tax increases on businesses. Many small businesses are already teetering on the brink of closure, and further disruptions via unremitting inflation, supply chain shortages, higher taxes and the unforeseen consequences caused by BBB may actually mean Build Back Never for those vulnerable firms that managed to grind it out over the last 19 month of the pandemic.

Bad Policy: Taxing Businesses as They Work to Recover Under Stressful Conditions

As SBE Council has noted in previous communications with Congress, we oppose tax hikes on businesses and individuals especially during this precarious period of time for our economy. Conditions in the supply chain and inflationary pressures have only worsened since SBE Council’s August 2021 survey of small business owners who said that tax increases should not even be on the table as the economy and businesses try to recover.

America’s family businesses continue to be targeted by BBB with unfair and harmful tax increases. But whether its tax hikes on small businesses, family businesses, individuals, corporations or investors, raising taxes is not sound policy at a time that our economy needs as much capital and incentives as possible to weather inflation, supply chain challenges, labor shortages, high gas prices, and general economic uncertainty.

Bad Medicine for Consumers and American Innovation

The “pared down” price controls on prescription drugs in the BBB bill remain a misguided and dangerous idea. They will harm innovation, investment and U.S. global leadership in this critical industry.

The provision to “negotiate” is government price-setting plain and simple. The egregious penalties and retroactive taxes in this bill will not keep this critical industry innovating – or U.S.-based for that matter. Such an outcome would hurt workers, local economies, U.S. global leadership in this vital sector, and health care consumers.

Small Business Owners Crave Stability and Certainty

What is happening in our economy – slower growth, inflationary pressures, and troubling conditions across markets – is exactly what happens when government sends an anti-business policy signal and does things that impose more costs and uncertainties on businesses and consumers.

The vast increases in government expenditures and tax increases in BBB will drain resources from the private sector. Resources that are needed to withstand the uncertainties of the pandemic and unstable economic conditions.

Small businesses do not support this package. SBE Council urges a NO VOTE on BBB.

Sincerely,

Karen Kerrigan, President & CEO

 

 

 

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