President Obama is delaying parts of the health care law. This poses several major problems. First, these delays introduce more uncertainty in an already uncertain economic environment for small businesses. Second, it’s unfair. Delaying some parts of the law, but not all of it, means Americans have to live up to their end of the requirements, even as the government doesn’t live up to its end. Third, the law itself gives the President no power to delay any of it, so the administration is now venturing into new territory by taking those decisions on itself.

Rising health care costs and the burdensome requirements of the health care law were already the biggest concern of small businesses in this U.S. Chamber of Commerce survey. Not surprisingly then, small business hiring and confidence has slipped lately, the NFIB reported this week. In a recent Gallup poll, 40 percent of small businesses put hiring on hold specifically because of the health care law. The recovery is historically slow, this law is holding back economic momentum, and it should be repealed.

Sincerely,

Sam Graves
Chairman

Latest Committee Action

On Tuesday, the Small Business Subcommittee on Economic Growth, Tax and Capital Access held a hearing to examine how the United States compares with the rest of the world in providing an environment for business viability, health and growth potential. Historically, America has benefited from the global economy, but over time the American economy has faced new challenges while other countries have made strides to catch up, and the result has been American outsourcing to other countries, as businesses attempt to reduce production costs. Witnesses included an executive of Chobani, which has an impressive story of rapid growth, and Harvard Business School Professor Michael Porter, who testified about America’s economic competitiveness challenges and gave their recommendations for restoring U.S. competitive dominance. 

On Wednesday, the Committee highlighted the small business growth policies of state governments that have highly successful economic strategies. The hearing included the testimony of state officials from South Dakota, Texas, Virginia and Kansas. These states consistently rank in the upper tier of various “best states for business” analyses, and represent three of the top five in CNBC 2013 Best States for Business ranking announced just this week. CNBC ranked South Dakota first, Texas second, followed by North Dakota and Nebraska, while Utah and Virginia tied for fifth. These states succeed with smart regulation, lower tax regimes, low cost of business formation and access to capital.

News from Washington

The Growing Trade Opportunity for Small Businesses

By Sam Graves

Small Biz Resources