House Passed Inflation Reduction Act Important Step in Equitable Small Business Growth
Small business owners stand to benefit from the law that will create greater healthcare affordability and level playing field on taxes
Washington, DC - Today, the U.S. House of Representatives passed the Inflation Reduction Act of 2022 (IRA), which includes robust investments important to boosting the small business ecosystem, particularly affordable healthcare and clean energy. It also includes significant provisions to improve equity in our tax system while reducing the deficit. We look forward to the president quickly signing this legislation into law.
Small business owners need and support the benefits included in the IRA that will give them the economic foundation to start and grow businesses and to promote a more resilient workforce. In particular, small business owners have reported obtaining access to affordable, quality healthcare as essential for them and their employees. Key IRA provisions, such as the following, go a long way toward meeting this need.
- Affordable Care Act subsidies. Extending the ACA’s premium subsidies through 2025, will enhance access to healthcare coverage, especially among those still financially impacted by the effects of the pandemic. It will also ensure that premium costs remain low and that sole proprietors, who make up a large share of the enrollees in the marketplace, can access affordable coverage for them and their families.
- Medicare negotiating drug prices. Allowing Medicare to negotiate drug prices will improve well-being and cap undue out-of-pocket costs. Addressing the rising costs of prescription drugs, as these costs are hurting small business owners' bottom lines, will ensure that entrepreneurs and their employees have access to the prescription drugs they need at a price they can afford.
“Expanding healthcare coverage and making healthcare more affordable is critical to small businesses like me and our business ecosystem,” said Mike Roach, co-owned of Paloma Clothing in Portland, Ore. “The Affordable Care Act (ACA) changed the game for many entrepreneurs and their employees for the better. Although our ability to access and provide continued quality and affordable healthcare was tested during the pandemic, because of the ACA, many of us were able to struggle through and support health plans for ourselves or our employees. It will be important to do all that we can to extend subsidies for the millions of small business owners and their employees who count on them. And to have these subsidies available for those who may need them in the future.”
We are also pleased that the bill includes measures to level the playing field regarding taxes. For too long, our nation's tax system has benefited the wealthiest Americans and large multinational corporations at the expense of small business owners, their employees and independent entrepreneurs. Establishing the 15% corporate minimum tax on corporations with profits above $1 billion and appropriating enforcement dollars to the IRS are commonsense revenue raisers and will support small businesses across the country. Additionally, funding allocated to enforce the tax code and hold large corporations accountable is essential to our small business ecosystem. Small businesses strongly support efforts to close tax loopholes and ensure that larger corporations pay their fair share.
Moreover, the legislation’s energy, security, and climate change investments will enable us to build a thriving, equitable clean energy economy for our future.
“Small businesses are the backbone of our nation’s communities and economy, but they need support to help level the playing field and create a healthy environment for entrepreneurship,” said John Arensmeyer, Founder & CEO of Small Business Majority. “The Inflation Reduction Act of 2022 includes measures that small businesses across the country have been calling for nearly a year. It is past time that they get the support they need to grow and thrive. Through targeted investments in healthcare and by closing unfair corporate tax loopholes, smaller firms will receive an opportunity to tackle workforce and economic obstacles that have hindered entrepreneurship.”
We are thrilled to see Congress advancing critical provisions that will help bolster a small business community and build a solid economic foundation to sustain long-term recovery efforts. We encourage the quick enactment of this bill into law.
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 deliver resources to entrepreneurs and advocate for public policy solutions that promote inclusive small business growth. Our work is bolstered by extensive research and deep connections with the small business community that enable us to educate stakeholders about key issues impacting America’s entrepreneurs, with a special focus on the smallest businesses and those facing systemic inequities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.