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.
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.
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outdated or burdensome.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.
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.