Small to medium businesses (SMBs) need to cut expenses to cope with growing inflation levels, but they can’t thrive without the help of government policies explicitly crafted for their needs, says Anne Zimmerman, Owner of Zimmerman & Co CPAs.
She has crafted a three-policy agenda that involves tackling issues that impact owners and employees of small businesses who may not be able to recover inflation costs simply by raising the prices of their goods. Zimmerman’s recommendations for the government include lowering prescription drug prices, reducing childcare costs, and suspending the federal gas tax.
Prescription drugs, Zimmerman said, cost more than twice as much in the U.S. than in other countries. One-third of all small business owners have raised the prices of their goods just to offset growing employee healthcare costs, she claims. A poll from Small Businesses for America’s Future (SBAF) showed that healthcare costs are so unbearable for small business owners that 80% strongly support reforms to reduce the cost of prescription drugs, regardless of political affiliation.
Childcare is also a considerable issue for SMBs; a national survey from SBAF stated that 55% of small businesses support prolonging the child tax credit. The U.S. Bureau of Labor Statistics (BLS) January job report shows that more than one million men joined the workforce compared to just 39,000 women. Zimmerman attributes this to a lack of childcare, as more women are required to stay home with their children. By increasing childcare support, Zimmerman says, the workforce can be re-energized, bringing down inflation.
Federal gas taxes, Zimmerman said, should be suspended by Congress. She said that the cost could be offset by increasing the corporate tax rate, a policy that 65% of small business owners support, according to the SBAF survey. Zimmerman said that it’s the responsibility of large corporations to protect small businesses and American citizens by paying their fair share of taxes.
