John Riley, owner of John’s Computer Service, an NFIB member business in Staunton, wrote the following column about how proposed legislation in Richmond could increase costs and regulations for Virginia small businesses.

Running a small business is a constant balancing act between cash inflows and outflows, managing personnel, and maintaining client satisfaction.  I’ve owned a small computer sales and repair business in Staunton for 30 years. Margins are thin and almost every dollar that comes in has already been spent. Constantly increasing costs and ever-changing business environments make for a formidable challenge in the best of times. These are not the best of times. Sadly, commonwealth lawmakers are poised to make times even worse.

Last month, the General Assembly talked about tax hikes. One of these bills, HB 978, would have added a new 4.3% tax on services and labor. While it did not pass, this bill will be revisited next year. Worse, it’s part of a broader trend of proposed legislation that will place a greater load on the backs of small business. A back that is dangerously strained.

For example, the legislature is considering proposals that would drive up the cost of turning on the lights or running the AC by rejoining the Regional Greenhouse Gas Initiative. Under this approach, power producers would be required to buy carbon allowances through state-run auctions. The proceeds from these sales are set to fund low-income housing (50%) and flood preparedness (45%). But what sounds good on paper, won’t be cheap. In 2025, RGGI allowance prices reached their all-time high. That means in addition to already skyrocketing electric costs, we will pay even more.

When costs rise, a business must either internally absorb the cost or pass the cost onto their customers. With already tight margins, these increases make keeping our doors open harder and the chance of growth becomes nonexistent.

Lawmakers are also debating new rules and regulations that would result in a greater impact on small businesses than on large corporations.

Too often, policymakers assume every business is the same. What may work for a Fortune 500 company may not work for a small business where $500 may be a fortune. Every new mandate means more paperwork, compliance costs, and legal risk.

Filling out unnecessary paperwork and meeting compliance requirements takes time away from business owners. Time away from serving customers means less revenue. Less revenue means we are one step closer to closing shop.

Finally, some in the General Assembly want to weaken or repeal Virginia’s right-to-work law.

While critics say that Virginia’s right-to-work law is anti-union, that isn’t accurate. What the current law states is that no one can be forced to join or pay a union to keep a job. It protects worker choice and has been an important factor in Virginia’s ability to attract jobs and investment from larger companies.

When larger employers choose to locate here, small businesses benefit from the resulting economic boost that follows. More jobs bring more workers. More workers spend more money in the area which brings small business more revenue.  Weakening or repealing right-to-work would reduce flexibility for both employers and employees, discourage job creation, and ultimately harm small businesses.

Our elected leaders need to realize that increasing costs and limiting flexibility leaves small businesses with few options. We can raise prices, cut staff, delay hiring, trim benefits, or abandon growth.

I want to grow my business, invest in new equipment, improve my location, and hire more people when it makes sense. All these things depend on smart choices. Not just smart choices by myself as a business owner, but smart choices by our legislators.

Politicians should work with small businesses, not create new obstacles that make it harder for them to succeed. Remember, we are the backbone of the economy, but our back can only carry so much.