A Look at The Government’s Top Small Business Concerns this Year

In short, it’s a wild time for small businesses. With the divided results of the midterm elections, the USMCA signed, a new president in Mexico, a looming government shutdown, and the divided 113th congress moving in, legislation is halted.

Aside from the recently trending #ShutdownStories from government employees, what does it all mean for small businesses?

As the government works its way through the shutdown, small businesses are already feeling the effects. Even after the shutdown, small businesses can expect some tension from the incoming divisions in congress. 2019 carries “low expectations” for small business help.

On Wednesday, The Associated Press announced a compilation of “issues that small business advocates expect to be on government agendas in 2019,” including health care, taxes, trade, employment issues, infrastructure, internet policy, and paid leave. Let’s look at the specifics with a few issues to see how your business is affected.

Health Care

If the US needs anything, it’s a solution to the rising price of health care.

Changes in health care laws will affect small businesses. Tension surrounding the The Affordable Care Act (ACA) and associated health plans (AHP) is growing. In fact, health care concerns are topping the lists of issues of employees and employers alike. From ObamaCare to Trump Care, ACA, and AHPs, the uneasiness will surely have small business owners feeling queasy. Yes, ill.

The ACA continues into 2019. So, it is still the employers responsibility to be informed and up-to-date on changes. But open enrollment is closed as of December 15th.

Surely, as a business owner, you’ve been pretty invested in 2019 and have been thinking ahead. So you already know that health insurance rates are skyrocketing in the coming year. Health care costs are under pressure with more and more strings being cut and the need for buyers increasing.

Business owners suggest opening health savings accounts. HSAs are what employers are banking on, and are proving to be beneficial and inexpensive for employees. Hybrid plans will also help small business employees reap the health benefits, in a more practical sense, without throwing a lot of money at something that won’t be used.

2018 ended with The Trump Administration pushing associated health plans and “skinny” plans. But with the whirlwind of accusations against healthcare solutions, promises, and attempts, business owners are finding it increasingly hard to pinpoint the most favorable and beneficial plan. Especially when states like California are signing legislation that to prohibit the formation of new association health plans. The competitive industry of health insurance is not getting any less complicated.

Taxes

Small businesses may see some small changes after a lot of fight. But the majority of small business advocates foresee progress stalling. Democrats and Republicans remain stuck place in terms of taxes.

AP mentions the failed 2017 Small Business Owners’ Tax Simplification Act, or other forms of tax simplification that small business owners are aching for, but admits the lack of foreseeable hope with a divided congress.

Trade

Of course, the replacement of NAFTA (North American Free Trade Agreement) with the USMCA (United States Mexico Canada Agreement) is going to affect all businesses in some way. It’s opposed by some “who want stronger protections for U.S. workers from low-wage Mexican competition.”

With the USMCA settling in (with plans to fully implement by 2020), small business will be affected in terms of the automotive industry, as 75% of a vehicle’s contents will be required to come from North America to avoid tariffs. This is a great jump for the North American auto industry, which has suffered of late.

The deal is also meant to open the market to Canadian dairy products, which has a will prove positive for access to Canadian dairy and perhaps a bit painful in other the Canadian industries.

Additionally, a recent survey from Duke University/CFO Global Business Outlook claims that nearly half (48.6 percent) of U.S. CFOs believe that the U.S. will be in recession by the end of 2019, and 82 percent believe that a recession will have begun by the end of 2020.

As the new trade agreement kicks in (and considering recent stock market fluctuations), many expect a recession to be in bloom.

Employment

Labor costs are rising. With health care costs and additional benefits tying into the hiring competition, small businesses will have to try harder to keep up with larger corporations.

With the USMCA, a certain percentage of factories will be required to pay workers $16/hour.

In October 2018, The Department of Labor (DOL) claimed it would push talk of overtime rules until March 2o19. However, the government’s partial closure will most likely delay this further.

These issues will hopefully have bipartisan appeal. Small businesses continue to be the foundation of the US economy. Delays and changes to policy legislation will surely have an immediate impact.

We can only hope for less long term effects. But, only time will tell.