How President Biden’s State of the Union Plans Could Impact Small Business

March 3, 2022

President Biden laid out his domestic economic agenda that continues to include harmful small business policies.

How President Biden’s State of the Union Plans Could Impact Small Business

On March 1, President Biden gave the State of the Union address and laid out his plans to tackle the domestic economic challenges this country faces. For small businesses, those challenges include supply chain disruptions and staffing shortages while balancing the pressure of inflation to survive and remain competitive. In a recent Small Business Economic Trends Report, over two-thirds of small business owners say supply chain disruptions are impacting their business significantly or moderately, and a historically high number of small businesses reported struggling to increase their workforce. NFIB Research Center Executive Director Holly Wade explains, “The staffing shortage and supply chain disruptions are impeding their ability to fully realize sales potential. Many of them are saying that those two obstacles are causing lost sales opportunities, so they are not able to fully capture the increase in consumer spending at their business which is a huge frustration for small business owners.” In his State of the Union remarks, President Biden outlined several plans for the economy. However, within those plans are at least four anti-small business policies that would severely set back the fragile small business recovery. They include:

Passing the PRO Act, legislation that would dramatically upend long-standing employment law in favor of labor unions and at the expense of small businesses and their employees
Mandating a comprehensive and inflexible paid family and medical leave program
More than doubling the federal minimum wage to $15 an hour
Increasing legal liability by making legitimate business-related pay differences difficult to defend in court and allowing unlimited damages

Instead, as small business fights to survive and recover, small business owners are urging Congress to support pro-small business policies and oppose efforts in Congress to bring back elements of the Build Back Better Act. “Small businesses continue to be the foundation of America’s economy after two years of the COVID-19 pandemic and government restrictions,” Vice President of Federal Government Relations Kevin Kuhlman said following President Biden’s speech. “Now, small businesses are struggling with rampant inflation, supply chain disruptions, and an ongoing labor shortage with little relief in sight. We urge President Biden and Congress to pursue policies that won’t set back the fragile small business recovery such as new taxes and mandates and instead promote policies that will encourage economic growth.” If your small business would be impacted by tax increases and new mandates, join in the fight and send your concerns to your Members of Congress.

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Topics:

Taxes

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