Main Street Alliance Calls on Congress to Prioritize Small Businesses and Essential Services Over Tax Breaks to Support Economic Growth Across America

On June 3, 2023, President Biden signed H.R. 3746 to lift the nation’s debt ceiling after passing the Senate with a vote of 63-36. This bill increases the federal debt limit, establishes new discretionary spending limits, rescinds unobligated COVID funds, and expands work requirements for federal programs.

The bill includes various provisions that directly impact small business owners, addressing critical areas such as funding, administrative regulations, federal student loans, and energy project permitting. These provisions hold significant implications for the success and sustainability of small businesses across the nation.

One notable provision is the rescinding of certain unobligated funds provided to address COVID-19 and the Internal Revenue Service. This can potentially free up resources that could be redirected towards supporting small businesses, providing them with additional opportunities for growth and recovery from the pandemic's economic impact.

Furthermore, the inclusion of funding for the Department of Veterans Affairs Cost of War Toxic Exposure Fund and the Department of Commerce Nonrecurring Expenses Fund can have a positive ripple effect on small businesses. These funds can contribute to job creation, stimulate local economies, and create business opportunities within industries that support veterans and commerce-related activities.

Small businesses, including solo entrepreneurs, play a vital role in our local economy, particularly for marginalized groups and residents in rural communities. It is essential that we prioritize their needs and provide the necessary support to help them thrive.

In addition to small businesses, the impact of the debt ceiling vote on essential services cannot be overlooked. Programs that directly benefit working families, such as access to quality healthcare, education, and social support systems, are of utmost importance in promoting economic stability and improving the well-being of individuals and families in the United States.

Small Businesses must be prioritized by Congress to sustain our recovery 

The Fiscal Responsibility Act poses significant challenges for struggling families across our nation. These families, including true small business owners, already struggle to make ends meet, facing rising costs, stagnant wages, and the threat of proposed cuts to vital services such as Meals on Wheels, education, and housing. While it is crucial to avoid default, it is unjust to burden working families, aging individuals, and children while allowing wealthy households to continue evading their fair share of taxes. The law fails to address the inequities in our tax system and places an unfair burden on those who can least afford it.

It is unjustifiable to sacrifice critical services and benefits while the wealthy and corporations enjoy lower tax rates than many middle-class families. Additionally, allowing wealthy tax evaders to escape their rightful tax obligations undermines the very economy that has contributed to their wealth.

While avoiding default means true small business owners can avoid a destabilizing event for Main Street, we need to make sure that we’re investing in public goods and addressing critical needs as we continue to recover from the COVID pandemic. We urge leaders to come together to make critical investments in Main Street so we grow a firmer foundation for future growth.

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