This week, the U.S. Small Business Administration celebrates Small Business Week. Over one hundred small business owners, chosen to be honored for their achievements, come to Washington to network, learn, and be recognized by their peers and by policymakers for their leadership. I like to think of the once-a-year-event as bringing “Main Street” to “Capitol Street.” Washington should take notice because Main Street small businesses have a common sense approach when it comes to policy.
Small businesses advocate for lower tax rates in order to stimulate economic growth. And, when they think of the IRS, small employers do not think about “loopholes,” they call for a more simple and straight forward tax code to alleviate the burden of tax compliance. Figuring out what to pay in federal taxes costs small firms $1,304 per employee per year compared to the $780 per employee cost for larger businesses that have accounting departments tasked with navigating the Code.
And, small business owners want to provide more affordable health insurance for their employees. Again, their approach is simple; harness the buying power of small business to keep costs low and enhance choices and competition. Senators Dick Durbin and Olympia Snowe have embraced the “Main Street” approach and introduced the Small Business Health Options Program (SHOP) which is a key part of Congress’s drive to move forward on health care reform.
The men and women who come to Washington for Small Business Week are a small fraction of the millions of small businesses across the country. They are a humble group, but I hope they brag on how small business will lift us out of the recession. Policy makers know that 60-80 percent of net job growth comes from small business. Small business owners are also not whiners. But, I hope they point out that the $1 trillion federal regulatory compliance cost falls disproportionately on their shoulders. Small employers are justified in their call for agencies to streamline and update regulations to make it easier for small businesses to operate.
Small business should succeed because of government, not in spite of it. The small business award winners honored during Small Business Week give us a chance to highlight those examples of success and absorb lessons that are good all year long.
Tom is a Senior Fellow in Regulatory Studies at the Institute for Liberty, serves on the Advisory Board of the NFIB Small Business Legal Center, and is an advisor for the Center for Small Business and the Environment.
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