Supporting Small Businesses

Inspired by the American Dream, entrepreneurship drives our country’s economic success. During National Small Business Week (May 4-8), we recognize the many contributions small businesses make to our communities and local economy. Their wide-reaching impacts include employing more than 75 million Americans and creating approximately two out of every three new jobs.

In Nebraska, more than 167,000 small businesses employ nearly 400,000 people. On my recent travels throughout the Third District, I have had the opportunity to visit many small businesses and talk with owners about the issues they face. From McBattas Specialty Advertising in Fairbury to American Bullet in Kimball to Beatrice Bakery Company, I have seen firsthand how small business owners create jobs in their communities and get Nebraska products to people across the country and around the world. Unfortunately, many federal policies directly interfere with these entrepreneurs’ success rather than supporting their hard work.

The red tape rolling out of Washington is choking small businesses. According to a World Bank report, the U.S. ranked third worldwide in ease of starting a business in 2007. Last year, the U.S. came in 46th. Since 2008, more small businesses have closed than have opened. This is the first time business failures have exceeded startups since this data has been recorded, and it reflects an alarming increase in government regulation.

Last year I launched Regulation Rewind to stand against government overreach, and I am continuing it into 2015. Through this initiative, I have identified unnecessary and overly burdensome regulations which hurt economic growth, limit opportunities for rural Americans, are inconsistent with the law, or are unfair. Many of these regulations directly impact Nebraska’s small businesses. I hope you will contact me at www.AdrianSmith.house.gov/RegulationRewind with your examples of overreaching federal regulations which need to be addressed.

The House Ways and Means Committee, on which I serve, also works to reduce regulation and support small business growth. For example, the America’s Small Business Tax Relief Act originated in the Ways and Means Committee and passed the House in February. This legislation makes long-standing tax provisions permanent to give certainty to small business owners and allow them to plan for the future. In particular, the provision setting higher expensing levels under Section 179 of the tax code provides small businesses the certainty they need to invest in equipment while knowing those expenses will not be taxed up front by the federal government.

Currently the Committee is focused on expanding U.S. trade by passing Trade Promotion Authority, which empowers Congress to direct the administration’s negotiation of trade agreements. In Nebraska, small- and medium-sized businesses constitute 82 percent of exporters. With 95 percent of customers living outside our borders, opening more markets to Nebraska exporters is essential to leveling the global playing field for our small businesses.

Although National Small Business Week has come to a close for 2015, I encourage all Nebraskans to support Third District small businesses year-round. In Washington, I will work to reduce burdensome regulations and open more trade opportunities for local entrepreneurs. I look forward to partnering with you on Regulation Rewind and other efforts to ensure Nebraska’s small businesses receive the support they deserve.