Standing up for small business in uncertain times

Congress put small businesses in an impossible position. On one hand, a government shutdown would be bad for small firms, depriving them of access to critical resources at a time when they are already facing enormous uncertainty due to the Trump administration’s unpredictable approach to tariffs, threats of mass deportations of immigrants, and reckless approach to government staffing and funding cuts. On the other hand, the continuing resolution (CR) that would keep the federal government operating through September falls far short of meeting the needs of our nation’s growing small business community.

New tariffs on Canadian and Mexican imports will put small businesses and family farmers at a competitive disadvantage. We’ve heard from a number of small business owners who said that any cost increases can be devastating for businesses already operating on thin margins. And large tariffs like 25% would mean most small businesses have no choice but to pass their costs on to customers. Larger businesses, however, are more likely to have flexibility to absorb increased overhead, keeping prices lower and undercutting their smaller competition. At a time when inflation was already spiking, even consumers who may prefer to shop small are more likely to buy big if there is a significant price difference for similar products. We’ve also heard from small business owners who would be happy to purchase products made in the United States if they could; the reality is that they simply cannot either because those products are too expensive or because the industries that supply what they need relocated offshore decades ago.

Paying for unnecessary and irresponsible tax cuts for the top 1% by gutting small business-focused programs, federal assistance and social safety nets will cause irreparable harm to Main Street businesses nationwide. Millions of small business owners rely on a wide array of federal programs across numerous agencies to support not only the growth and development of their business, but the health and economic wellbeing of themselves and their employees.

Reports that the Trump administration will fire 3,500 IRS agents working in the division that oversees small businesses and the self-employed is at odds with what small businesses want and need. Our research has found that small business owners agree that the IRS needs continued additional funding to support them, and a large majority believe that additional funding is needed to properly audit large corporations and wealthy taxpayers, as well as offer improved customer service overall.