Friends of the U.S. Chamber of Commerce

Protect Innovation

Last week, while testifying before the Senate Budget Committee, Treasury Secretary Jack Lew defended the medical device tax hidden in the Patient Protection and Affordable Care Act, calling it “a critical component of the health care law that can’t easily be replaced.”

Earth to Lew. A punitive tax intended to pay for the massive bill of the health care law at the expense of innovation should have never been included in the first place.

Imposed on medical device manufacturers whether or not they make a profit, this new 2.3 percent tax on the sale of virtually all medical devices will lead to increased health care costs, undercutting one of the primary goals of health care reform.

Not only is it a punitive tax that singles out a particular industry, it simply isn’t a health care issue. The tax was imposed solely to generate revenue to help pay for the massive health care overhaul.

Clearly no one thought too far ahead on this one.

Additionally, a study from AdvaMed estimates that 43,000 jobs could be lost because of the medical device tax. That’s because it raises taxes on the medical device industry by almost 30%.

The impact is already being felt through layoffs at device manufacturers around the country. In the long term, cuts in research and development will limit access to life-improving and life-saving innovations.

Combined with the high corporate tax rate already imposed on the research and development and manufacturing industries, the medical device tax is a huge disincentive for companies to stay and grow in the United States.

As the AdvaMed President and CEO said in a letter to Secretary Lew,

“That is directly contrary to the Administration and our industry’s shared goal of keeping and growing good jobs in the U.S.”

More taxes, fewer jobs, less innovation, and higher costs; that doesn’t make sense to us at all.

Fortunately, there is a growing group of bipartisan legislators who agree. Make sure your member of Congress is one of them by sending a letter urging them to support repeal today.

Grassroots Survey Results

We asked and you answered.

We recently opened a survey to our grassroots Friends to get your input on how we're doing and what we can do to serve your interestes better. Thanks to everyone who already participated. This survey is a great chance to make your voice heard, and will play a big role during the key debates over the national debt, balancing the budget, and taxes that will impact our country for years to come.

If you haven't participated, please click here to let your voice be heard. We would love to have your input before the survey closes.

Here are a few things we've learned so far:

• 96% believe that the Free Enterprise system has the best solutions to lead the economic recovery
• 85% oppose Obamacare
• 71% belive spending and economic uncertainty are the biggest challenges to overcome
• 92% of you said that Washington has a spending problem.

Fiscal Cliff is “Not a Game” to Small Businesses

Here are some interesting numbers from a Washington Post-Pew Research Center poll on the public’s attitudes toward the fiscal cliff, tax increases and automatic spending cuts to take effect starting January 1:

•64% think going over the fiscal cliff will have a major effect on the economy.

•60% think that effect will be negative.

•61% think it will negatively affect them personally.

Moving past past abstract poll numbers, let's hear from small business owners telling Washington that it would be devastating to go over the cliff [emphasis mine]:

Brian Scott, President & CEO, SCECON, U.S. Chamber small business member (Portsmouth, VA):

"The current malaise, brought on by an uncertain economic future has already caused our revenues to drop more than 30% compared to 2011. We can only project that both our government and corporate clients will continue to hold back on the projects that normally involve our services - until the fiscal cliff is behind us.  The last quarter of 2012 has brought on a freeze for hiring at our company and unless the first quarter of 2013 shows marked improvement, we will see additional constriction of our work force and, quite possibly, layoffs of personnel that have been with our firm for many years."

Tom Mercier, President & CEO, bopi, (Bloomington, IL):

"Margins are quite thin with the downturn in the economy, and we have to have profits to reinvest in the business.  If more goes to D.C. that means fewer dollars for profit sharing, employee raises or even new hiring (and with the new affordable health care act that will dampen that even more), plus health care costs will continue to eat up a greater share of the pie. As a subchapter S corporation it will definitely have a negative effect on the future growth of my business."

Phil Williams, President, Kenyon Appliances, U.S. Chamber small business member (Clinton, CT):

"Because Washington bureaucrats continue to play poker with our nation’s economy my business plans are on hold. I would have hired more people this month if the tax and budget issues had been dealt with properly. So now we wait to see what will happen. This is not a game to my employees this is their livelihood and they need answers now."

Sarah O'Neil-Manion, Principal, O’Neil & Manion Architects P.A, U.S. Chamber small business member (Bethesda, MD):

Our firm was fortunate to have some work this year. However, we have opted to work more hours (50-70 hour workweeks) rather than hire additional staff. We have no plans for hiring or making any major business purchases next year given the fiscal cliff likelihood.  The failure of the President and Congress to provide tax reform and entitlement reform or even a marginal agreement to prevent the fiscal cliff will make economic conditions difficult for any business to survive.

Steve Juhan, President, Grant Road Industrial Center U.S. Chamber small business member (Tucson, NM):

"I manage family owned industrial properties on the west side of Tucson. We have financed the purchases with natural gas income from Colorado (deal my grandfather made three generations ago). The tax hike would not only affect my business, but all of my tenants. I specialize in providing space for small business and start-ups. This tax hike is a direct attack on small business. Vacancy is killing Tucson right now. There are no new start-ups we are only cannibalizing our neighbor's tenants. Costs are going up (property taxes, repairs, property insurance, etc.) and rent is going down. I am doing deals for 1998 rental rates. It sucks! And it's going to get worse..."

 Glenn Cox, Owner, Family Owned Farm, U.S. Chamber small business member (Camilla, GA):

"I’m a fifth generation farmer here in southwest Georgia. I intended to pass our farm to my 21 year old daughter. The change in the inheritance tax will result in her having to sell half of our farm to pay death taxes."

For more information about how the fiscal cliff is impacting small business hiring trends, see the most-recent U.S. Chamber Small Business Outlook Survey conducted by Harris Interactive in October.

Do you feel the effects of a resilient economy?

This weekend on Sunday's Meet The Press, Treasury Secretary, Tim Geithner had some unexpectedly positive comments on the state of our economy. 

“The economy now is actually looking quite resilient… In manufacturing, one of the strongest periods of manufacturing revival that we've seen in almost a generation.” 

News reports that followed Geithner's comments contested his claims, noting that, "A survey shows U.S. manufacturing shrank in November to its weakest level since July 2009."

"Resilient" may not be the first word that comes to mind when we think about and almost 8% unemployment rate and the mere 27 days until our economy is in jeopardy of flying off a fiscal cliff.  

What do you think? 

Small Business Saturday, Uncertainty and the Fiscal Cliff

Did you "Shop Small" as part of the Small Business Saturday this past weekend?

If you did, you were one of over 100 million Americans who participated in this worthwhile promotion during the past few years.

This year, as in past years, the U.S. Chamber was honored to be a sponsor of this event to help support the small business owners who represent our local communities.

As this news story reported, Small Business Saturday helped draw crowds to local businesses — a needed boost in the midst of an uncertain economy.

In fact, according to our most recent Small Business Outlook Survey, 49% of small businesses are not sure if their business’s best days are ahead or behind them.

It’s going to take more than a one-day promotion to create certainty for these job creators.

And the looming “fiscal cliff” certainly isn’t helping.

As this Wall Street Journal survey shows, small businesses fear the “fiscal cliff” — and aren’t confident that our elected officials will prevent it before December 31. 

Now that the elections are over and Thanksgiving has passed — it’s time for Congress and the White House to get back to work and pass a “fiscal cliff” solution before the end of the year.

Please visit the Fiscal Cliff Countdown to learn more about why immediate action is necessary — and how you can contact your members of Congress to urge action today.

Tell us the story of your Small Business Saturday experience in the comments section below. 

Straight From the Source Small Businesses - Speak Out on the Fiscal Cliff

Constituents are furious about Congress’ inaction on the upcoming fiscal cliff and what will be the biggest tax increase in American history. But it’s not the political leaders who stand to lose if we don’t solve this problem before January 1st, 2013.

Experts have predicted failure to act on this impending crisis will result in a deep recession, which would certainly take a devastating toll on the job creators and innovators that make up America’s small businesses community.

In this week’s Tax Fact of the Week, we’re going straight to the source — we’re going straight to the job creators who are running successful small businesses, to hear what they have to say about the fiscal cliff.

Visit the Fiscal Cliff Countdown now to hear firsthand what the fiscal cliff would mean for small businesses.

Tell Congress to act now.

When is a Lower Unemployment Number Bad News?

This morning, it was reported that the economy added only about 96,000 jobs in August bringing the unemployment figure down from 8.3% to 8.1%  

Great news, right?  Unfortunately not.  Today’s unemployment numbers are lower because so many Americans have become discouraged with their efforts to find a job that they’ve simply stopped looking.

U.S. Chamber Chief Economist Dr. Martin Regalia explains:

“For yet another month the economy created a paltry number of jobs. The unemployment rate dropped because 368,000 people left the workforce. The participation rate in the jobs market is at a 30-year low. Clearly the economic policies that have been implemented in Washington are failing. These numbers virtually assure that the Fed will try to bail out the economy with yet another round of monetary easing.”

We can turn this around.  

But only when we stop looking to government for all of the solutions and again embrace American free enterprise and the power of small businesses to lead our recovery and put Americans back to work.

Help Us Defend Free Enterprise from Growing Government

Yesterday, the U.S. Chamber hosted its third annual Jobs Summit. Watch below as we had the pleasure of catching up with Governor Scott Walker after the event, to get his thoughts on free enterprise in America, how it has shaped the state of Wisconsin and the importance of its influence in the future of our country’s economy.

“Moderation and frugality in government leads to freedom and prosperity for our people. The reason we're the leader of the free world is because of the free enterprise system…It was the entrepreneurs, not just the innovators that got our economy going, and we need to have that happen all over again.”

Governor Walker is right. It’s small businesses and the free enterprise system that established America as an economic powerhouse, and that have created a standard of living that is the envy of the word.

The stakes are high this year as the free enterprise system has come increasingly under attack by many who believe government – not the innovation and hard work of the American people -- should solve our problems. If we’re to get our economy roaring again, we need leaders in our nation’s capitol who will embrace free enterprise, not undermine it.

With your help, we will send leaders to Washington who agree that the free enterprise system is the best bet to ensure that future generations have the same advantages and opportunities that have made America great.

Click here to become a part of our landmark 2012 Voter Education Program, and you and can help make a difference for American free enterprise in November.

The Heartbeat of America

Ma and Pa shops are more than just a cliché.  The family-run small business is still the backbone of the economy in communities across America.   

This year, in the time between Mother’s Day and Father’s Day, the U.S. Chamber is honoring the mothers, fathers, and families that play a vital role in the fabric of American life and in the success of the American economy.

In advance of Father’s Day, log on to share your family small business story or read about family-run businesses in your community.

Small businesses are the lifeblood of the American economy, and the family-run small business is a true piece of Americana. 

Don’t miss the chance to recognize a family-run small business before we begin to highlight the owners and leaders of this celebrated industry over the next couple of months. 

We wish you and your family a safe and happy Father’s Day this weekend.

NEW RELEASE: Small Businesses Share Their Economic Outlook

They’re the heartbeat of our economy, represent 99.7 percent of all employer firms around the country, and employ almost half of America’s private sector workforce – and they’re telling us how today’s economic environment impacts their growth.

Earlier this week, we released the results of our Quarterly Small Business Outlook Survey for the first quarter of 2012, where over 1,300 small businesses from around the country outlined their outlook on the state of the economy as it relates to policies from Washington, hiring trends, and attitudes leading up to the elections. 

So, what do American small businesses identify as the biggest growing threats to their success?

According to our Q1 Small Business Outlook Survey, the recent spike in energy prices is growing as a small business obstacle.

The number of small business concerned about rising energy prices has doubled since our last survey, up from 10% to 24%.  Seventy-eight percent (78%) of small businesses have the perception that the Obama administration isn’t doing enough to address the surge in energy costs, support American jobs or energy production.

Concerns about over-regulation are also in the rise. 

Fifty-two percent (52%) of the businesses we surveyed cited regulatory burdens form the government as the top threat they face in 2012.

No matter the challenges, small businesses’ confidence about their own future continues to rise.

Our Q1 survey shows that small business confidence is up 7 percentage points from our last quarterly survey, even though new hiring has remained stagnant.  Businesses know what would help them start hiring again — a reduction in the taxes, regulation, and legislation that flows from Washington.  Eighty percent (80%) cited these as the biggest roadblocks to increased hiring.

Small businesses are looking to the upcoming elections to provide relief from the overreach of government.

An overwhelming majority, 97% of those we surveyed, said a candidate’s support for free enterprise is important to them, with 84% citing free enterprise as very important.  Not to mention, the vast majority really just wants Washington to get out of their way, with 81% favoring more certainty over more government help.

Click here to view the entire results of our 1st Quarter Small Business Outlook Survey.

The message from American small businesses is clear: We need to support the  free enterprise system and empower American businesses to lead our nation to recovery.

Leave a comment below and tell us how small businesses in your community are dealing.

State of the Union: More Government or Free Enterprise?

If you watched the president’s State of the Union address last night, you witnessed a speech that focused on many issues central to our economy. Unfortunately, he missed the mark. As U.S. Chamber President Tom Donohue said after the speech:

"Too many of the solutions he proposed rest on higher taxes, more spending, and an avalanche of new regulations. The way to create the jobs Americans need is to grow our free enterprise economy, not to further expand the federal government."

We’re ready to work with anyone in Congress or the White House on solutions that will put Americans back to work without raising taxes or adding to the deficit. Read the Chamber’s jobs plan here.

It’s possible. And it’s time to demand real solutions.

Please leave a comment below and share your thoughts on the president’s speech. You can also join us on Twitter for a national conversation taking place now.

Survey Says: Small Businesses' Economic Outlook Not Improving

Today, the U.S. Chamber has released our Fourth Quarter Small Business Outlook survey.  

The quarterly surveys are designed to track the small business community’s outlook on their business, the local economy, and the national economy over time. Small business owners are polled nation-wide, and respondents include U.S. Chamber members and non-members.

Though another quarter has come and gone, this quarter's results show the vast majority of small businesses continue to view the country as headed in the wrong direction, and economic uncertainty continues to be their biggest challenge, along with regulations and the health care law.

As mentioned in this morning's press release:

The poll of 1,322 small business executives - conducted between December 30, 2011 and January 6, 2012 - found that more than eight out of ten (85%) now believe the U.S. economy is on the wrong track. Eight out of ten say they would rather have Washington stay out of the way than provide a helping hand. Similarly, nearly nine out of ten (86%) say they would rather have more certainty from Washington than more assistance (6%) to deal with the economy. The survey defined a small business as a company with fewer than 500 employees and annual revenues of less than $25 million.  

While outlook on our nation's economic environment remains grim, we're encouraged to see the outlook for local economies  and attitudes about respondents own businesses have improved. Additionally, 93% of small business members support the Chamber's role in issue advocacy and voter education.

Read the full findings from the 2011 Q4 Small Business Outlook Survey here.

2011 A Year in Grassroots

Happy Holidays from the U.S. Chamber

More Than Statistics: Meet the Real Victims of Lawsuit Abuse

A few weeks ago, we sat down with Lisa Rickard, Executive Vice President of the U.S. Chamber and President of the U.S. Chamber's Institute for Lawsuit Reform (ILR) and Workforce Freedom Initiative, to discuss the impact of lawsuit abuse on America’s economic recovery.

Did you know that lawsuit abuse costs small businesses up to $100 billion each year? That's the same sector responsible for 64 percent of all new jobs created in the U.S economy. More jobs, higher wages and better benefits could be provided if the average small business earning $1 million in revenue wasn't spending $20,000 each year on an out of control lawsuit system.

But lawsuit abuse is about more than just numbers. It impacts real people, and real small businesses.

Watch the videos below to hear the real stories of how lawsuit abuse has threatened the futures of two family-owned businesses — a Mexican restaurant and a coffee shop — in California.

These stories are part of ILR’s Faces of Lawsuit Abuse campaign. Do you know a small business facing a frivolous lawsuit? Visit Faces of Lawsuit Abuse to share your story.

Millions of Available Jobs Going Unfilled?

A few weeks ago, we emailed the members of our Small Business Nation network and asked them if they were one of the millions of small businesses unable to hire because of an unskilled workforce.

Believe it or not, this is a real issue in the current economy. In October, CNBC reported that, “there are about 3.2 million job openings in America that companies are unable to fill.” asked them if they were one of the millions of small businesses unable to hire because of an unskilled workforce.

Then, earlier this month, the Wall Street Journal reported on a new survey that shows 40% of small businesses are having trouble filling positions.

The end result is an economy that has 4.2 jobseekers for every opening, yet many small businesses cannot find applicants for the work needed.

Ghouls, Goblins and Government Regulation

Sen. Rubio Meets with Jacksonville Small Biz Roundtable

Small businesses around the country are meeting with their members of Congress to voice their concerns and challenges in regards to growing and thriving in our current economy.  Senator Rubio, member of the Senate Small Business Committee, met with the Jacksonville small business community this week, and here’s what they had to say:

How are the small businesses in your community fairing in today’s economic environment?

The Mic is Now Open ... for American Small Business Owners

It’s understandable that American small business owners feel like their concerns aren’t being heard.

According to the results of our past few Small Business Outlook Surveys, they’ve been asking for federal government to get out of their way ...yet the federal government has 

However, recently, one government agency has taken a step in the right direction. This week the U.S. House Small Business Committee launched their new website, Small Biz Open Mic, providing a platform for small businesses to share their story and an outlet where they know their voice matters. done the exact opposite

The More Big Government Tries to Help...

With friends like these, who needs enemies?

I’m talking, of course, about our friends in the federal government.  The more they try to “help” small businesses ... the worse the situation seems to get.

At least, that’s what small businesses told us in our latest “Small Business Outlook” survey for the third quarter.

In our previous quarterly survey, small business’ outlook for the economy was pretty grim.  As you may recall, 84% of small business owners said the economy was on the wrong track, with only 19% planning to add employees over the next year.

Believe it or not, those numbers have gotten even worse.  Now, almost nine out of ten (89%) now believe the U.S. economy is on the wrong track — and only 17% expect to add employees over the next year.

There is, however, one thing that hasn’t changed: the biggest obstacle to small businesses is still big government.

In fact, small business owners still find economic uncertainty to be their most-pressing concern (53%), but also worry about uncertainty from what Washington will do next (39%), and the healthcare law (33%).

Now, for the good news: small businesses clearly see a path forward, much of which is in line with the jobs plan released by the U.S. Chamber last month. Take a look at these numbers:

• Eighty percent think increased domestic energy production would be helpful to the economy;
• 74% think speeding up permitting and regulatory relief would be helpful; 
• 67% think the same about passing tax incentives.

It’s wonderful that small business owners think favorably of our proposals to get America working again — but it’s frustrating that the White House and some in Congress don’t seem to be listening.

Rest assured that we’re doing our best to ensure that these politicians hear the voices of small business loud and clear.  

Charles Schwab and the Power of One Entrepreneur

America’s economic recovery isn’t going to be driven by the growth of government — it’s going to be driven by empowering the private businesses who invest in new American jobs.

As Charles Schwab writes this week in the Wall Street Journal: 

The Entrepreneurial Fire Burning in America's Youth

The spirit of American entrepreneurship is still alive and well in America's youth.

That's the central finding of a fascinating new survey of U.S. high school juniors, released yesterday by the U.S. Chamber of Commerce's National Chamber Foundation and Junior Achievement USA.  The Free Enterprise National Survey found that 64% of high school juniors said they were interested in starting or owning their own businesses, and that 15% had already taken the entrepreneurial leap by starting their own business.

Clearly, the spirit that has made America an exceptional and exceptionally prosperous nation still burns bright in America's young men and women.   

The survey also helped to highlight the problems we currently face.  While teens are clearly expressing an interest in starting and owning their own businesses, they also expressed reservations and uncertainty about the state of the American economy.  Seven in 10 high school juniors believe that the economy will either stay the same or get worse in the coming year, and nine in 10 are concerned about future job prospects after they finish high school.

The danger here is that many young, budding entrepreneurs might be dissuaded by the state of the economy and by these fears from taking the kinds of risks necessary to start a new business, and create jobs and economic prosperity.  The teens surveyed expressed their strong belief in the vital importance of education on entrepreneurship, free enterprise and capitalism in school to help encourage those with entrepreneurial desires to act on them.

Through organizations like the National Chamber Foundation and Junior Achievement, we will continue to work to encourage the future entrepreneurs of America and invest them with confidence that free enterprise and capitalism can help us overcome our current economic doldrums.

Do you know of budding entrepreneurs ready to lead? If so, leave a comment and share their stories. 

The Unpopular Crowd

The Federal Government, Less Popular Than Every Private Business Sector 

Over the last few years, some politicians in Washington, D.C. have done their best to demonize American business and propose a policy agenda of “punishment” against these job creators.

They’ve tried to paint American employers as everything from “corporate jet owners” to tax evaders.  However, it appears their efforts have proved unsuccessful.

According to a new Gallup survey, the federal government is less popular than every other business sector in the country (heck, even lawyers are more popular than the federal government).

Take the oil and gas industry for example.  This sector has been attacked as “Big Oil” and targeted for tax hikes by the Administration and some members of Congress.  Even so, oil and gas remains more popular than their accuser.

These survey results are in similar accord with what we saw in our recent survey of American small business owners — that they trust the private sector more than the federal government to get our economy back on track.

Take a look at this Gallup graph to see exactly how federal government stacks up against 24 other business sectors:



Who’s number one on your most popular list? Who do you believe can lead the way back to prosperity? Weigh in by submitting a comment below. 

U.S. Chamber Named a "Small Business Influencer Champion"

Crossposted from Chamberpost

At a time when small businesses need one more than ever, the U.S. Chamber was named a “Small Business Influencer Champion” by Small Business Trends and Small Biz Technology. The award, determined by more than 125,000 online votes and a judging panel, “honors companies, organizations, and people who have made a significant impact on the North American small business market.”

A New 'Department of Jobs'?

Americans are facing a high unemployment rate, increased uncertainty and are looking to their elected officials to come up with a plan.  The Administration’s idea to getting jobs growth moving is…more bureaucracy?

Sounds ridiculous to us, too.

But, believe it or not, that’s exactly what the Obama Administration is proposing.  

The New York Times reports:

“The administration may also merge the Department of Commerce, the Office of the United States Trade Representative and some economic divisions at the State Department into a new agency, administration officials said. Possible names include the Department of Jobs or the Department of Competitiveness.”

That’s not a real jobs plan. It’s a political maneuver that continues this administration’s failed “action equals progress” approach to economic policy.

More government bureaucracy is not the solution to our jobs problem.

After all, our recent survey of small business owners found a commanding majority felt the best way government could help them would be to simply get out of the way.

Instead of a new government agency, perhaps the Administration and Congress should work to peel away the layers of already established regulation that are crippling our job creators; enact the free trade agreements that will allow small businesses to sell more goods; and reform the tax system so job creators have more money to invest and create new employment opportunity.

Visit America’s Town Hall today, and send a letter to your elected officials urging them to take action one the issues that mean the most to you; jobs.

Quick Poll: Have Policies Punished or Rewarded Small Business

With rising unemployment and unsustainable debt, America’s small businesses certainly aren’t celebrating lately.  

According to columnist Mona Charen, who writes in National Review , policies enacted during the past few years have served to punish — rather than reward — success by American businesses:

Employers do not know how much each new hire will cost under the new health-care regime. Nor can they estimate how the 129 new boards, commissions, and agencies will affect the business world. Meanwhile, the EPA is regulating carbon dioxide as an air pollutant. The National Labor Relations Board is attempting to prevent the Boeing Corporation from opening a new plant in South Carolina ... the new Consumer Financial Protection Bureau (created by the Dodd-Frank law) is practically freezing small-business lending."