U.S. Rep. Dan Meuser, center, speaks during a small business roundtable discussion near Pottsville in August. Its regional director. (MIKE URBAN – Reading Eagle)
Small businesses are the powerhouse of our economy, innovation and job creation. They are at the heart of our communities and employ 60% of our country's workforce.
Recently, in an effort to hear directly from entrepreneurs, I hosted a small business roundtable at the Yuengling Brewery Convention Center in Pottsville. During the event, more than 40+ small business owners shared their concerns. The common thread was that they believe the Biden administration is promoting policies that make doing business more challenging. Rising inflation, rising energy costs, and supply chain issues, in addition to poorly designed rules, regulations, and taxes, stand in the way of their success.
As someone who spent 20+ years in the private sector helping turn a small business into a large business, I have a deep appreciation for these challenges. That's why I serve on the Small Business Committee and the Financial Services Committee in Congress, which serve as a line of defense for small businesses and the financial system they rely on to access capital to start and grow their businesses.
House Republicans have and will continue to fight for Small Business, which is why we passed HR 1, the Lower Energy Costs Act, and HR 277, the REINS Act, which prohibits the Executive Department from spending without approval of Congress. Both bills will help reduce costs for small businesses.
But the fight continues, and for now, of particular concern is the reluctance of the Biden administration and congressional Democrats to work with Republicans to extend successful provisions of the Trump Tax Cuts and Jobs Act, such as the tax credit R&D, the full bonus repayment and the Small Business Discount.
If Democrats allow these provisions to expire, small businesses would see significant tax increases that would hurt their business, their employees, and ultimately, consumers.
Without the R&D tax credit, innovation would be stifled, which has always been an economic driver in the United States. That's why I continued to support the American R&D Innovation and Competitiveness Act, which would permanently restore full and direct R&D spending to small businesses and provide incentives for long-term investment in technological innovation.
I also continued to push for passage of the ALIGN Act to make permanent one of the most pro-growth policies in the Tax Cuts and Jobs Act, with full and immediate spending, continuing the Bonus Depreciation. Full expensing allows businesses to deduct the cost of new investments (machinery, equipment, etc.) in the year they are purchased, rather than depreciating them under complex IRS rules. Under current law, bonus depreciation is expected to decline by 20% annually through 2027, hampering the ability of entrepreneurs to invest in their businesses.
And finally, of note here, but certainly not all, is the Main Street Tax Certainty Act, which allows small businesses to deduct up to 20% of qualifying income. That discount, unfortunately, is scheduled to expire at the end of 2025. However, a permanent “small business discount” would give entrepreneurs the predictability they need and help keep doors open, workers on payroll, and prices reasonable level.
It's really strange that the Biden administration and congressional Democrats are standing in the way of these common pro-growth policies. In fact, instead of supporting initiatives that help small businesses, they are taking actions that directly hurt them. The Consumer Financial Protection Bureau recently implemented a rule that would burden community lenders with additional and significant compliance costs. The Federal Reserve has just released a proposal that will increase capital requirements for banks and in turn force them to raise borrowing costs and reduce access to credit. These are of course on top of the myriad ESG standards imposed on American industry and the manifest inflation that comes from the Democrats' overspending and attack on domestic energy production.
House Republicans remain committed to our small business community. So, as the 118th Congress moves forward, we remain steadfast in our goal to implement competitive tax rates, reduce regulations, block burdensome rules, lower energy costs, stimulate the workforce, promote favorable trade agreements, end overspending and making America the best. competitive country in which to operate.
As Ronald Reagan said, “a strong American economy is essential to the well-being and security of our friends and allies.”
Meuser, a Republican, represents Pennsylvania's 9th Congressional District.
