Blog Post -- UncertaintyOctober 17 2012
A common concern I hear from business owners in our district is that the uncertainty they have regarding taxes and regulations makes it difficult, if not impossible, for them to expand their businesses and hire new employees. Uncertainty exists not only about the economy in general, but also specifically regarding tax rates, the impending “fiscal cliff,” and the economic impact of coming regulations --including those stemming from Obamacare mandates just now going into effect.
This uncertainty among small business owners is not limited to the Second District. The latest U.S. Chamber of Commerce’s Small Business Outlook Index found that 87% of small business owners want more certainty from Washington.
In the House, we have acted to address this uncertainty by not only voting to stop the coming tax hike, but also working on long-term solutions to the problems we currently face. We have passed legislation to spur job creation, reduce spending, repeal Obamacare and begin reform of our tax code. Unfortunately, Senate Democrats have chosen inaction resulting in even more uncertainty.
Bloomberg recently reported on the latest optimism index from the National Federation of Independent Business, citing the group’s chief economist, William Dunkelberg. “Small-business owners are in maintenance mode; spending only where necessary and not hiring,” Dunkelberg said. “Owners are unwilling to put their own capital on the line until the future path of the economy and economic policy becomes clear.”
William Smith of TPR CPAs in Dunn, NC, recently expressed similar comments regarding the reluctance of business owners to expand and hire until they have more certainty about the future.