Gem State Wire

Small businesses in the United States are facing numerous challenges as Labor Day approaches. The COVID-19 pandemic has left a lasting impact, exacerbating issues such as supply-chain disruptions, inflation, and a persistent worker shortage. According to the National Federation of Independent Business (NFIB), 91% of its members reported working longer hours to cope with labor shortages.

Federal and state regulations continue to pose difficulties for small business owners. The Corporate Transparency Act is seen as particularly burdensome. Jeff Brabant, NFIB’s vice president of federal governmental relations, stated that “more than 32 million small businesses are facing potential ruin — not just of their livelihood but also of their personal freedom.” He urged Congress to repeal the act, which requires business owners and senior employees to register personal information with the Financial Crimes Enforcement Network by the end of the year or face severe penalties.

Another concern is the potential expiration of the 20% small business tax deduction created by the 2017 Tax Cuts and Jobs Act. NFIB President Brad Close warned that if lawmakers do not make this deduction permanent, "Main Street will face an unprecedented tax hike." He advocated for passing the bipartisan Main Street Tax Certainty Act, stating that making the deduction permanent would enable "90% of local businesses" to invest more in their workers and communities.

State-level regulations add further pressure. California has introduced Workplace Violence Prevention Plans and varying minimum-wage rates based on occupation and location. For instance, fast-food workers have a $20-an-hour rate while health-care workers earn $25 an hour. In contrast, Idaho ties its minimum wage to federal rates and prohibits local variations.

Despite these challenges, small business owners remain resilient. They play a crucial role in maintaining a healthy economy both nationally and globally.