Elden Johnson, a small business owner from Minnesota and a member of the National Federation of Independent Business (NFIB), recently testified before the U.S. House Committee on Small Business. The hearing, titled “The Golden Age: Unleashing Main Street Through Deregulation,” focused on suggested measures to provide necessary regulatory protections for small enterprises.
In his testimony, Johnson expressed concerns regarding the regulatory burdens on small businesses. “One major headwind for small businesses is the unprecedented regulatory burden imposed on us over the last four years. The Biden Administration added $1.8 trillion in new regulatory compliance costs and added 356 million paperwork hours on the private sector,” said Johnson. He elaborated on how these compliance costs impact small businesses disproportionately. As a small business owner, he lacks a compliance officer or lawyer, meaning he personally handles complex laws and regulations.
Johnson also warned of potential tax increases as key provisions of the 2017 Tax Cuts and Jobs Act, specifically the 20% Small Business Deduction, are soon to expire. “Although small businesses remain optimistic, there are warning signs on the horizon. The looming expiration of key provisions of the 2017 Tax Cuts and Jobs Act, specifically the 20% Small Business Deduction, creates uncertainty about whether my taxes will go up next year. Congress can help small businesses like mine by passing the Main Street Tax Certainty Act to prevent a massive tax hike on 9 out of 10 small businesses,” he stated.
Moreover, he noted the impact of a challenging regulatory environment over recent years, describing it as having “laid a wet blanket over the economy.” Johnson urged Congress to act to prevent economic uncertainty and support small businesses.
