NFIB members are fighting against new taxes, and against adding complicated regulations for data privacy
In Congress, NFIB and small business owners are following and speaking out on two separate issues in the last few weeks. Not only have there been recent talks about a new small business tax, but there was also a recent bill addressing data privacy regulations on small businesses. The current economic challenges are already hurting small businesses but adding any new taxes or complicated regulations will only add to the challenges of Main Street. Below are two recent legislative provisions that would impact small business, explained:
New Small Business Tax Considered for Massive Congressional Spending Bill
In early July, the U.S. Senate proposed adding a new tax on pass-through businesses, wrongly characterized as closing a “loophole” to help fund Medicare. NFIB members spoke out against this new tax in a video, and NFIB launched a multi-state paid advertising campaign to urge members of Congress to stand against the new tax. In response to that advocacy, in late July, senators put forth a newer version of the legislation – which they now call the Inflation Reduction Act of 2022 – without the new tax on pass-through businesses. The Senate will begin consideration of this bill in early August and NFIB will remain vigilant in ensuring the tax increase proposal does not return as an amendment or future legislation.
“With excessive inflation, high gas prices, worker shortages, and supply chain disruptions, a tax increase incorrectly masked as closing a ‘loophole’ or ‘funding Medicare’ is not only problematic, but it will further destabilize the small business economy,” said NFIB Vice President of Federal Government Relations Kevin Kuhlman.
Small Business Fights Against Complicated Data Privacy Regulations
Complying with H.R. 8152, the American Data Privacy and Protection Act, would be a significant and costly challenge for small business owners. Small business owners care deeply about the privacy of their customers as well as their own personal privacy as consumers. But with limited resources it would be extremely difficult for small business owners to comply with the proposed complicated mandates.
“Unlike large businesses, small business owners do not have a compliance department or a team of attorneys to help them deal with complicated new regulations,” said said Kuhlman. “Most owners handle new paperwork and compliance burdens themselves. This legislation will require all small business owners to establish complicated new privacy safeguards and protocols, tasks they are ill-equipped to perform.”