House GOP Debt Limit Bill is a Step Backward for Small Business Growth
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, on proposed debt limit bill and its impact on small businesses
“The U.S. House Republican-led debt limit bill that passed on Wednesday is a step backward from the investments proposed in President Biden’s budget for Fiscal Year 2024. We need policymakers to come together on a serious plan to address our nation’s debt without impacting programs and hurting the economy. We are particularly concerned by the legislation’s provision to enact spending cuts on critical federal programs, reduce funding for the Internal Revenue Service (IRS), and cut spending for clean energy.
- Cuts to federal programs. The legislation proposes a large reduction in federal discretionary spending, which could impact a number of programs that small businesses rely upon. This is in addition to rescinding unused and uncommitted American Rescue Plan funds that provided billions of dollars to state governments to support small business communities nationwide. As many small businesses are still working to recover from the pandemic, capping spending for these programs at 2022 levels or rescinding unused funds will be unhelpful to long-term recovery efforts.
- IRS funding. Small businesses strongly support policies that level the playing field through tax reforms and create a tax system where wealthier businesses pay their fair share. The proposal to rescind funding for the IRS will impede the agency’s ability to enforce the tax code and hold large corporations accountable.
- Clean energy incentives. The proposed cuts to clean energy tax credits and spending programs are a wrongheaded step that would prevent a modern 21st-century economy. Small businesses want to be part of the competitive economy that clean energy investments and clean air standards can create—but they need help getting there. Repealing or modifying tax credits for renewable and clean energy dampens the ability of entrepreneurs to seek new growth opportunities in clean energy. American innovators see long-term economic benefits in this industry but are looking to policymakers to support measures that will help them ensure stability in this field.
We need meaningful legislation to address the nation’s debt limit and promote economic certainty, but we are troubled by the House’s short-term proposed debt limit bill that will retract investments in programs important to cultivating innovation and spurring entrepreneurship. We urge the Senate to reject these measures and advance a long-term fix that will raise the debt limit without impacting critical federal programs that are important to small business growth.”
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.