Jan Haviland, owner and president of Haviland Corp., an NFIB member business in Linn, testified online today before the U.S. House Small Business Committee about the impact proposed federal tax increases would have on small businesses already struggling because of the pandemic.
Haviland, who chairs the NFIB Missouri Leadership Council, told lawmakers:
“When the pandemic arrived in March of 2019, we saw a drop in business for several months but were helped with PPP monies to get us through the next 6 months of 2019. We also provided our county with 50 PPE [personal protection equipment] washable gowns for the health department.
“Since January of 2021, we have experienced cost increases from all suppliers, including corrugated boxes, steel, steel finishes, rubber, freight, plastic parts, bolts, screws, and other parts necessary for completing our products and getting it to our customers. This, in turn, is causing an upturn in the prices we must charge our customers. We usually have between a 2-5% increase every two years, but this year, being the year to increase prices, we are looking at a price increase of between 10-12%.
“As I look at the tax increase the federal government is proposing for C corporations, this would wipe out about two-thirds of our price increase. In running a business, it is essential to have money to cover cost increases, repair and/or replace equipment, do building repairs, and to provide all full-time employees with full health insurance and wage increases, for full- and part-time employees, hoping they will not be wiped out by inflation.
“With prices increasing on supplies, some three to four different times, since the beginning of 2021, wage increases, insurance increases, repair and equipment price increases, what would be remaining from our product price increase would be very little, to cover the costs of doing business.
“As a small C corporation with worldwide distribution, and approximately 15-20 employees, depending on the time of year, we could price ourselves out of the market because of having to pay higher taxes to the federal government.”
Haviland told the committee members, “It is important we work with one another, and by manufacturing in the United State of America, we can do that. Now we need your help to ensure this continues.”