New Small Business Rundown podcast episode highlights the biggest small business legislation from 2023
The Small Business Rundown podcast recently featured a recap of top federal advocacy priorities for small businesses throughout 2023. Guests from NFIB’s Federal Government Relations team also looked ahead at proposed rules and implications for small business owners in 2024 on issues that will continue to be monitored.
Small Business Deduction
The Small Business Deduction allows pass-through entities (Sole Proprietorships, S-Corporations, Partnerships, or LLCs) to deduct up to 20% of their qualified business income.
“The Main Street Tax Certainty Act will make this permanent because this expires at the end of 2025,” explained Federal Government Relations Director Jeff Brabant. “Over 80% of small employers are pass-throughs that would benefit from this. So, it’s very important the Main Street Tax Certainty Act is passed, so they don’t see a massive tax increase at the end of 2025.”
Credit Card Competition
Small businesses pay set processing fees, also known as swipe fees, every time they use their credit cards, and these fees have doubled since 2012. The Credit Card Competition Act would give small business owners multiple credit card networks to choose from and inject much-needed competition into the credit card processing market, allowing small business owners to choose the option that is best for their business.
“This will put that kind of competition that small business owners have to live with everyday into the credit card marketplace and ultimately bring down rates small business owners pay on credit card fees,” said Brabant.
Healthcare
Small business owners struggle with rapidly increasing healthcare premiums. For nearly 40 years, the cost of health insurance has ranked as a top priority for small employers and the problem is only getting worse. NFIB continues to advocate for legislation that lowers costs for small employers.
- Choice Arrangement Act: The House of Representatives passed the Choice Arrangement Act that empowers small employers with more affordable insurance coverage options.
“NFIB was intimately involved in that,” Federal Government Relations Manager Josselin Castillo explained. “In fact, many NFIB members testified in support of legislation to increase choice and control for small employers. The likelihood of that legislation seeing the time of day in the Senate is very slim this Congress because we have divided government, but in the legislative arena this is a huge triumph, and it sets us up for a great battle in the future.”
- Lower Costs, More Transparency Act: The House of Representatives also passed legislation that would empower and equip small employers with transparency and more information about their benefits so they can make the best decisions for their business and their employees.
“We want to ensure that these transparency measures are helpful not just to large employers but also small employers,” Castillo said. “We think that this issue is going to heat up at the beginning of next year.”
- Paperwork Reduction Act: This bill would streamline reporting requirements for employers that offer group health insurance and reduce paperwork burdens. It is waiting for approval from the U.S. Senate which could happen before the end of the year.
Regulations
“The private sector is dealing with historic regulatory burdens right now with this Administration…A common theme is massive regulatory expansion,” said Federal Government Relations Director Josh McLeod, describing several rules that add to small businesses’ already heavy paperwork burdens.
- WOTUS: “According to one estimate, 97% of Iowa will be covered under this final rule,” explained McLeod. “It’s just massive; we’re talking land that is not traditionally wetlands or what you would expect to be covered in water. It’s a massive problem for farmers, small businesses, ranchers, and a lot of NFIB members that we care deeply about.”
- Joint-employer: The National Labor Relations Board (NLRB) came out with a final joint-employer rule that significantly expands when employers are deemed a joint-employer under the National Labor Relations Act. The new standard is much broader, permitting employers who have indirect control or unexercised control to be classified as joint-employers.
“It increases the bargaining power of labor unions over small businesses,” added McLeod. “It increases the number of small businesses that are deemed to be joint employers.”
NFIB will continue monitoring these issues as well as new regulations and bills that are planned for 2024. Listen to the full podcast to hear a breakdown of expectations for the new year and the implications of the legislation from this year. To submit questions or requests for future podcast topics or guests, please email [email protected].
Vote Your NFIB Federal Ballot
NFIB has a proven track record of getting results on the issues that matter most to small business owners by challenging existing laws and regulations and speaking out on newly introduced legislation that would impact small business. We have made measurable progress on the issues NFIB members voted on through the One Member, One Vote program.
Voting on NFIB’s current Federal Issues Ballot – ballot #583 – remains open. Members can cast their votes by logging in to their account at NFIB.com/votemyballot.
