Small Businesses Talk Shutdown, Taxes, Permitting on Capitol Hill

Small business leaders from across the nation convened for the U.S. Chamber’s Small Business Council fall fly-in, where they had opportunities to discuss key challenges facing their businesses, network with peers, share insights, and advocate for policies that empower Main Street to thrive.

During the fly-in, members of the U.S. Chamber’s Small Business Council went to Capitol Hill, where they met with lawmakers and staff from three dozen House and Senate offices to share stories on how federal tax policy and a broken permitting process impact businesses and local communities, as well as the effects of the government shutdown.

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Members of the Small Business Council meet with Rep. Celeste Malloy's (R-UT) office.

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Members of the Small Business Council meet with Rep. Aaron Bean's (R-FL) office.

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Members of the Small Business Council meet with Rep. Jen Kiggans's (R-VA) office.

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Members of the Small Business Council meet with Rep. Blake Moore's (R-UT) office.

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Members of the Small Business Council meet with Rep. Jay Obernolte's (R-CA) office.

Primary messages from small businesses 

• Permanent tax reforms are fueling growth. The One Big Beautiful Bill Act delivered extensions of critical pro-growth tax reform for small businesses across the country, such as deductions for R&D expensing and the 100% bonus depreciation, freeing the way for businesses to innovate and stay competitive.
• Government shutdowns impact small businesses and local communities. Prolonged government shutdowns prevent small businesses from obtaining the proper permits, contracts, loans, and licensing that they need. Without government cooperation, it will only become harder for Main Street businesses to pay their employees, obtain capital, and innovate. 
• Small businesses need permitting reform. A reliable, efficient, and modernized permitting system ensures they can continue to create jobs and build their local economy.  

What small business leaders said

• On the impact of the government shutdown: “[Receiving EPA approvals] can be a lengthy process regardless, but if there's this real big log jam, then we're going to be stuck behind that. Having the uncertainty of how long that'll be is concerning because our labels have to be updated before we can ship the product to retailers. It also means lost sales because if your product's supposed to go to market on the shelves in March, but it's delayed a month to April, that's an entire month of sales that are lost during a really important time of year for us,” said Philip Freeman, founder and CEO of Murphy’s Naturals in Raleigh, North Carolina. 
• On permitting: “Restaurants have a thin profit margin, so every day that a permit could hold up a project and make it so that we cannot open, it impacts our profit and our employees being able to work,” said Brooks Kirchheimer, Co-Owner of Hill Top Hospitality in Salt Lake City, Utah. “In Salt Lake City, there was road construction that had gone on for upwards of four years and a big federal project. That caused a lot of locals to stop using their regular commutes and not go to businesses that they had usually been going to. Multiple local small mom and pop businesses had to shut down.” 
• On tax relief: Casey Metzger, Founder of Top Shelf Services in Park City, Utah, described how the tax cuts allowed him to expand employee benefits, “With tax relief, the biggest impact that we've seen in our business is being able to invest in our staff and our team members. ... It helps our business grow and without those tax savings, we couldn't really do that.” 

The impact of the government shutdown

Small businesses are facing existential impacts due to the uncertainty created by a government shutdown, resulting in lost profits and decreased productivity. 

• Brian Butler, President and CEO of Vistra Communications in Lutz, Florida, told the Wall Street Journalthat a shutdown is “a very scary place to be in as an entrepreneur.” Butler has already had to let go of four employees due to stop-work orders caused by the shutdown.

The bottom line: Businesses rely on certainty, especially those on Main Street. By maintaining a competitive tax code, streamlining the permitting process, and ensuring government systems are efficient and reliable, Congress can empower small businesses to innovate and drive economic prosperity in their local communities.