The Congressional Budget Office (CBO) estimates the federal deficit for FY2013 will constitute 6.5% of GDP, which is 1 percentage point less than the deficit recorded last year, but still higher than any deficit between 1946 and 2008. The deficit inevitably affects small businesses through increased taxes and higher interest rates.

1) Federal Spending Should Be Significantly Reduced

WIPP urges Congress and the Administration to work together to make difficult fiscal choices necessary to reduce the deficit, ensure spending cuts are equitable, and guard against revenue raising tactics that result in a wholesale tax on small businesses.

2) Provide Small Businesses with Certainty in Economic Policy and Regulations

According to the U.S. Small Business Administration (SBA), small businesses pay 36% more in regulatory compliance than larger firms. This problem is exacerbated by the government's inability to provide long-term policies on which businesses can rely and plan for the future. Important to business growth is certainty about Congressional plans with respect to federal spending. Women business owners who are considering growth are hampered by the future of the unknown.

In addition to uncertainty about the future of the tax code, regulatory uncertainty is a factor in business decisions on hiring and investing. The President's agency review has identified 500 regulations that are duplicative, outdated or burdensome. Nevertheless, this year promises to be one of the most intense periods of government regulations since the 1970s.

3) Create a Tax Code that Fosters Growth

As tax reform continues to be discussed, it is important that any proposed changes encourage growth by creating a clearer and fairer tax code. Long-term certainty regarding the tax system will allow businesses to make important decisions in 2013 and beyond.