Beehive State News

Small businesses in the United States are currently facing significant challenges, as reflected in ongoing discussions this Labor Day. The COVID-19 pandemic has left lasting hurdles, including supply chain interruptions, inflation, and persistent labor shortages. Recent data from the National Federation of Independent Business (NFIB) demonstrates that 91% of small business owners have been forced to work longer hours to cope with these issues.

In addition to pandemic-related difficulties, small businesses are burdened by regulatory requirements, notably the Corporate Transparency Act. This piece of legislation has been described by Jeff Brabant, NFIB's vice president of federal governmental relations, as "arguably the most burdensome requirement Congress has ever asked of American small business owners." This Act mandates that business owners and senior employees register their personal details with the Financial Crimes Enforcement Network, with severe penalties for non-compliance.

The NFIB has also voiced concerns about the potential expiration of tax cuts for small businesses. The Tax Cuts and Jobs Act of 2017 included a small business tax deduction set to expire in 2015, as opposed to permanent cuts for larger corporations. NFIB President Brad Close has urged Congress to make these deductions permanent through the Main Street Tax Certainty Act to prevent a substantial tax increase for small businesses. He stated, "If the small-business deduction were made permanent, 90% of local businesses would find it easier to invest in their workers and communities."

Further regulations from state governments add to the pressures on small businesses. California, for example, requires businesses to develop specific Workplace Violence Prevention Plans for each area of distinct threat. This is coupled with the complexities surrounding minimum wage rates, with some states adopting varied rates depending on location or occupation.

Despite these challenges, small business owners remain resilient. Their perseverance is crucial for fostering a thriving economy. There is a consensus that a robust small business sector is foundational to any thriving economy worldwide.