NSBA Statement on Super-Committee FailureNovember 21, 2011
The National Small Business Association (NSBA) shares in the collective disappointment of today’s announcement that the so-called “Super Committee” has failed to come to consensus on any recommendations. NSBA has, from the beginning, urged the Joint Select Committee on Deficit Reduction to embrace a bold, bipartisan solution and provided detailed comments on what the small-business community was willing to support.
“The number one challenge facing small business today is economic uncertainty—something this failure will only exacerbate,” stated NSBA President and CEO Todd McCracken. “Lawmakers inability or unwillingness to work toward bipartisan deficit reduction solutions will further stymie an already sluggish economic recovery.”
Given the critical role small businesses have played in economic recovery following past recessions and their current inability to create meaningful job growth, this breakdown in lawmakers’ ability to govern is deeply concerning to the millions of small businesses that were looking to Washington, D.C. for some kind of collective leadership.
“I don’t think anyone expected the Super Committee to come up with all the answers,” stated Larry Nannis, CPA, NSBA chair and shareholder at Katz, Nannis + Solomon, P.C., “But for them to just walk away without any kind of policy recommendations is the purest kind of partisan failure.”
While we would prefer that Congress negotiate a deficit reduction package that makes intelligent choices among competing priorities, it would be foolhardy to continue down the current path to insolvency. Congress should not reverse the sequester until it has developed a replacement budget package that restrains spending and reduces the deficit by a comparable amount.
According to NSBA’s Mid-Year Economic Report, small businesses ranked “reducing the national deficit” their number one issue for Congress and the administration to address. While the debt ceiling agreement did include some automatic triggers to cut spending in the absence of the Super Committee’s recommendations, those cuts do nothing to address the growing lack of confidence small-business owners have in our elected officials, which will undoubtedly add to their economic uncertainty.