CHC Chair Statement on National Small Business Week
May 4, 2018
Washington, D.C. — April 29th to May 5th marks National Small Business Week, when the country pays tribute to small businesses and entrepreneurs that fuel American prosperity. To mark the occasion, Congressional Hispanic Caucus (CHC) Chairwoman Rep. Michelle Lujan Grisham (NM-01) released the following statement:
“This week the country pays tribute to the entrepreneurs and small business owners whose profound economic contributions to our neighborhoods and cities spur our nation’s prosperity. Key to this success is America’s Hispanic entrepreneurs who are the fastest-growing segment of the small business sector and making significant contributions to the economy and job creation.
“Hispanic entrepreneurs are starting small businesses faster than the rest of the startup population and Hispanic-owned companies have grown at a rate 15 times higher than that of all other U.S. firms. Last year, Hispanic entrepreneurs – represented by more than 4 million companies across the country – contributed more than $700 billion to the American economy.”
“Further, the contributions of Hispanic immigrants and immigrants as a whole are immense. Immigrants are twice as likely as the native-born population likely to start a business and added an approximately $2 trillion to total U.S. GDP in 2016. And if Congress and the President were to support comprehensive immigration reform that includes a legalization program for immigrants with deep roots to our communities and enables a future flow of legal workers, it would result in tremendous economic benefit—a cumulative $1.5 trillion in added U.S. gross domestic product over 10 years. In contrast, a deportation-only policy would result in a loss of $2.6 trillion in GDP over 10 years.”
“We must build on the entrepreneurial spirit of the Hispanic and immigrant community by making prudent investments in small businesses to promote growth and create economic opportunity and rewarding owners and entrepreneurs with a simpler and fairer tax code that will ease their tax burden so they can invest in creating jobs. Further, we must address the social, economic, and institutional barriers that create challenges to starting, running, and growing a business. By helping to close what many refer to as the ‘opportunity gap’, we can ensure that Hispanic-owned businesses have the resources they need to succeed and continue contributing to the overall American economy.”
A report, “Raising the Floor for American Workers: The Economic Benefits of Comprehensive Immigration Reform,” by Dr. Raúl Hinojosa-Ojeda, found that comprehensive immigration reform would stimulate the U.S. economy.
According to a study the Stanford Graduate School of Business, if Hispanic businesses grew as fast as the U.S. average, they could add $1.47 trillion to the U.S. economy.
The Trump Administration and Congressional Republicans have sought to cut funding for federal initiatives that benefit entrepreneurs. Small Business Development Centers (SBDCs) make up the largest network of assistance centers for aspiring entrepreneurs and include nearly 1,000 centers across the country. However, President Trump’s Fiscal Year 2019 budget proposed deep cuts to entrepreneurial development programs, including a $15 million cut to Small Business Development Centers (SBDCs).
Instead of rewarding entrepreneurs with a simpler and fairer tax code, the GOP tax law eliminates key small business deductions, while favoring deep and permanent tax cuts for larger corporations.
According to a poll from Businesses for Responsible Tax Reform, small business owners do not expect the GOP tax law to help them grow their businesses or provide job opportunities. The poll found that due to the law, 7 out of ten small business owners say they will not hire new employees, 6 in ten will not give their employees a raise, and over half say the tax law favors big corporations over small businesses.
Moreover, while Republicans have painted the tax law’s pass-through deductions as a break for small firms, 61 percent of the benefit from the tax law’s 20 percent deduction for pass-through income will flow to the top 1 percent of households in 2024.
Even Republicans concede that their tax plan is not working as expected. This week, Senator Marco Rubio (R-FL) explained, “There is still a lot of thinking on the right that if big corporations are happy, they’re going to take the money they’re saving and reinvest it in American workers,” Rubio told The Economist. “In fact, they bought back shares, a few gave out bonuses; there’s no evidence whatsoever that the money’s been massively poured back into the American worker.”
The Congressional Hispanic Caucus (CHC), founded in December 1976, is organized as a Congressional Member organization, governed under the Rules of the U.S. House of Representatives. The CHC is dedicated to voicing and advancing, through the legislative process, issues affecting Hispanics in the United States, Puerto Rico and U.S. Territories.