Silver State Times

Labor Day presents an opportunity to reflect on current policies affecting the shared goal of a prosperous economy. Small business owners face numerous challenges, exacerbated by the COVID-19 pandemic, including supply-chain disruptions, inflation, and a persistent labor shortage. According to the National Federation of Independent Business (NFIB), 91% of its members report working more hours to compensate for the labor shortage.

Federal and state governments continue to impose regulations that add burdens to small businesses. The Corporate Transparency Act is highlighted as particularly onerous. Jeff Brabant, NFIB’s vice president of federal governmental relations, expressed concerns about the act's requirements: “More than 32 million small businesses are facing potential ruin — not just of their livelihood but also of their personal freedom.” Failure to comply could result in severe penalties.

Another pressing issue is the uncertainty surrounding the permanence of the 20% small business tax deduction introduced by the 2017 Tax Cuts and Jobs Act. NFIB President Brad Close warns, “If lawmakers allow that to happen, Main Street will face an unprecedented tax hike.” He advocates for Congress to pass the bipartisan Main Street Tax Certainty Act, stating that making this deduction permanent would enable local businesses to invest more in their workers and communities.

States also contribute to these challenges. California has mandated Workplace Violence Prevention Plans for businesses and introduced occupation-based minimum-wage rates. These rates include $20 per hour for fast-food workers and $25 for healthcare workers. Local governments can set even higher minimum wages.

Despite these obstacles, small business owners continue to persevere due to their critical role in sustaining economies worldwide.