NSBA Calls for Long-term Economic SolutionsOctober 23, 2013
On Wednesday, Oct. 16, 2013, NSBA President and CEO Todd McCracken joined an impressive list of speakers at a press conference urging Congress and the President to put in place a long-term agreement to address the national debt. Held the day prior to the debt-ceiling deadline outlined by the U.S. Department of Treasury, McCracken joined former Secretary of Defense Leon Panetta, former Congressman and Director of the Office of Management and Budget Jim Nussle, and President of the Committee for a Responsible Federal Budget Maya MacGuineas, among others.
Since 2012, NSBA has been an active partner of the Campaign to Fix the Debt—the first small-business organization to partner with Fix the Debt—and continues to work toward the shared goals of the two organizations: getting policymakers to implement a comprehensive plan to address the mounting national debt.
In his comments, McCracken underscored the importance of small-business confidence in our economy and leaders. Citing the government shutdown and debt ceiling talks, McCracken discussed the detrimental effect these breakdowns have in terms of breeding distrust in elected officials and expanding an already large lack of confidence NSBA’s members have in policymakers’ ability to deal with critical issues. He warned this will have a negative economic impact and any modest signs of growth in the small-business sector which have cropped up in the last year could dry up.
Echoing the comments of the various speakers at the event, McCracken urged that a long-term solution is the only way to build back confidence and create an environment where small-business owners are going to be willing to take a chance on hiring a new employee.
Specifically, NSBA has endorsed a three-pronged approach, in dealing with the rising debt:
- Reform Entitlements: the growing and aging baby boom generation is a massive burden on entitlement programs such as Social Security and Medicare—neither of which can sustain the likely program growth without major changes. Starting in 2015, Social Security expenses are expected to exceed cash revenues – these expenses impact small-business owners and employers uniquely, both through the disproportionate cost and complexity of offering retirement plans and through the self-employment taxes on the cost of health insurance that no other business owner or employee pays. On the Medicare front, the incentives for payment must change to emphasize quality outcomes, fair and transparent pricing, improved health information IT and so on.
- Reduce Spending: replace the mindless cuts of sequestration with thoughtful cuts to wasteful and low-priority programs. Federal spending in 2010 amounted to approximately 24 percent of gross domestic product (GDP)—this is unsustainable.
- Tax Reform: enact pro-growth tax reform that will broaden the base, lower all individual and corporate tax rates, make business taxes more globally competitive for U.S. business and greatly simplify the tax code. According to NSBA data, the administration of federal taxes is actually a larger burden for small businesses than the tax burden itself.
Please click here to watch Mr. McCracken’s address.
Please click here to get more involved in the Fix the Debt Campaign.