In the coming days, the US Senate is likely to consider the Inflation Reduction Act, a landmark agreement reached between Senator Manchin (D-WV) and Majority Leader Schumer (D-NY). This legislation furthers the goal of the Biden-Harris Administration to support Americans and small businesses from the ground up by lowering health care costs for millions, reducing the deficit, investing in home energy production and manufacturing, and addressing fiscal disparities. of long standing that benefit the wealthiest corporations.
Given that these initiatives address many of the longstanding issues affecting their bottom line, it’s no surprise that small business owners across the country find the Reduce Inflation Act appealing.
Speaking in support of the bill, Dr. Erika Gonzalez, CEO, president and co-founder of South Texas Allergy and Asthma Medical Professionals (STAAMP) and STAAMP Clinical Research in San Antonio, said the legislation “will help the bottom line of companies and allow them to be more competitive in the job market I am pleased to see that the Reducing Inflation Act includes reducing the cost of prescription drugs, which is the main driver of health care costs and remains the number one policy issue one for small businesses.”
As Dr. González pointed out, one of the crucial measures included in the Inflation Reduction Act addresses rising health care costs. A recent small business for America’s future poll found that 83% of small business owners said rising health insurance costs have had a negative impact on their business, forcing them to raise prices and slowing their growth. The Reducing Inflation Act helps address rising health care costs in several ways. The first is by extending the Affordable Care Act subsidies for three more years and the second is by allowing Medicare to negotiate drug prices.
In addition, the legislation caps Medicare out-of-pocket costs and makes sure companies don’t arbitrarily raise prices faster than inflation. a recent kaiser study found that prices beat inflation for half of all drugs covered by Medicare in 2020.
“Because we are committed to attracting and retaining a talented workforce, we offer comprehensive health insurance. But the cost of health care is skyrocketing, which in turn is limiting our growth as a company. It’s true that small businesses are the backbone of the United States economy, but we shouldn’t bend over backwards to stay in business,” said Carling McManus, owner of CEO 84 agency in Charleston, WV, speaking about for what supports the health care provisions. of the legislation
Small business owners typically never ask for a handout, but they do ask for a level playing field, especially when it comes to taxes. This legislation does that by closing critical loopholes, establishing a minimum corporate tax rate of 15%, and providing $124 billion to the Internal Revenue Service for tax enforcement. This minimum corporate tax rate will not affect small businesses. In fact, it will only raise taxes on nearly 200 corporations that make more than $1 billion in profits and pay less than 15% in federal taxes. Major US industries are behind this common sense move to level the playing field on corporate taxes. In an article in The hillMichael Hanson, Senior Executive Vice President of Public Affairs at the Retail Industry Leaders Association, said: “The agreement reached accomplishes all the goals that retailers set out to achieve throughout the corporate tax debate: permanent lower rates, fairness to ensure that everyone is contributing, and better control to collect what is legally due”.
And small business owners agree. “Loopholes and tax breaks for big business create a huge deficit in our country’s budget that is being filled by small businesses and the middle class. We need changes that ensure big business pays its fair share. Inflation Reduction does just that,” said Christine Chin Ryan, owner of Synergy Consulting, Inc., in Portland, Oregon.
The Inflation Reduction Act also invests approximately $300 billion in deficit reduction. This, in turn, will help reduce the inflationary pressures that are driving up prices for both businesses and their customers.
Small business owners aren’t the only ones who think this legislation is sound economic policy. Economists share his opinion. On Tuesday, 126 of the country’s top economists, including seven Nobel laureates and two former US Treasury Department secretaries, sent a letter to congressional leaders who support the Inflation Reduction Act. They wrote: “This proposal addresses some of the country’s greatest challenges on a significant scale. And because it reduces the deficit, it does so while pushing down inflation. We strongly recommend that Congress act decisively to build a stronger economy by passing the Inflation Reduction Act as soon as possible.”
Former Treasury Secretary Larry Summers agrees that this legislation goes in the right direction. last week, the tweeted, “Less demand, more supply and better direct negotiations for lower prices: those are the things involved in reducing inflation. The bill reduces the deficit and the level of demand in the economy, lowers prescription drug prices, and increases supply by stimulating energy production.”
It’s no secret that rising inflation is generally taking a toll on small business owners, working families, and other vulnerable populations. While America is doing pretty well compared For other developed nations, we must address these issues with legislation that takes strong action to address inflation and address the fundamental issues: health care costs, energy costs, and a more equitable tax system. While some who represent select corporate interests in Washington disagree entirely, many American business and industry leaders, small business owners, and economists think there is much in this legislation that will move our country forward.