Beehive State News

Labor Day serves as a moment for reflection and evaluation of policies affecting the shared goal of a prosperous economy among workers, employers, and communities. Small business owners face significant challenges, with half of the nation's workforce relying on them for employment. The COVID-19 pandemic has left lasting issues such as supply-chain disruptions, inflation, and worker shortages that seem unlikely to resolve soon. According to the National Federation of Independent Business (NFIB), 91% of small business owners are working more hours to cope with labor shortages.

In addition to these challenges, federal and state governments continue to impose regulatory demands. A major concern is the Corporate Transparency Act's reporting mandates. Jeff Brabant, NFIB’s vice president of federal governmental relations, stated: “More than 32 million small businesses are facing potential ruin — not just of their livelihood but also of their personal freedom.” He urged Congress to repeal the act due to its severe consequences for non-compliance.

Another legislative issue is the potential expiration of the 20% small business tax deduction established by the 2017 Tax Cuts and Jobs Act. NFIB President Brad Close warned: “If lawmakers allow that to happen, Main Street will face an unprecedented tax hike.” He emphasized that making this deduction permanent would benefit local businesses significantly.

States have also contributed to small business burdens. California requires Workplace Violence Prevention Plans accessible to anyone who requests them. Additionally, various states complicate minimum-wage rates. Oregon implemented three different rates based on location, while California introduced occupation-based rates like $20 per hour for fast-food workers and $25 for healthcare workers.

Utah avoided these complexities by aligning its minimum wage with federal standards. Despite these challenges, small business owners persevere because they are essential for a vibrant economy.