As the CEO of the U.S. Hispanic Business Council (USHBC), I have witnessed firsthand the critical role small businesses play as the economic engine of this nation. I know Hispanic entrepreneurs and their businesses represent the fastest-growing segment of the U.S. small-business community.
Low Inflation and Cost of Living
The 2024 presidential election is being shaped largely by the economic concerns of everyday Americans, and rightfully so. Record-high inflation has burdened families and businesses alike, with prices for essentials such as groceries, gas, and housing remaining stubbornly high. This erosion of purchasing power is a direct threat to the standard of living for millions of Americans. For small businesses, the effects are even more severe. Inflation-driven cost increases in raw materials, wages, and other operational expenses have squeezed profit margins to the point at which many are struggling to keep their doors open. Higher interest rates, a consequence of the battle against inflation, have further compounded these challenges, making it more difficult for small businesses to borrow money and for prospective homeowners to afford mortgages.Strong Immigrant Workforce and Secure Borders
The U.S. success story is inextricably linked to its immigrant roots. Immigrants are not just part of our history; they are a vital component of our present and future. They make up 70 percent of agricultural workers, 30 percent of hospitality workers, 25 percent of construction workers, and significant portions of other critical industries such as manufacturing, STEM, and health care. The contributions of immigrant workers are not a drain on our economy; in fact, it is estimated that immigrants will add $7 trillion to our gross domestic product and $1 trillion to tax revenue over the next decade.Transparent Tax Policy That Incentivizes Innovation and Growth
Our tax system should be transparent, simple, and fair, supporting small businesses, workers, and consumers alike. Unfortunately, recent changes to our tax policy have had the opposite effect. The Tax Cuts and Jobs Act, for example, limited businesses’ ability to fully expense research and development investments, resulting in a much higher tax burden for many businesses. This is not just an inconvenience; for some, it represents a 400 percent increase in taxes year-over-year. Additionally, the impending expiration of the small business deduction could lead to another 20 percent tax increase for small businesses.Responsible and Strategic Energy Transition
The need to address climate change and transition to a clean energy economy is clear. According to the Pew Research Center, 74 percent of Americans support efforts to reduce climate change. However, the way in which we achieve this transition is a matter of intense debate. Rushed and overreaching regulations could have devastating effects on our economy, particularly for small businesses and industries reliant on affordable energy.We need a strategic, responsible energy transition that considers the needs of all Americans, including those whose livelihoods depend on affordable energy. This is not just an environmental issue; it’s an economic one, and it must be treated as such.
As we move forward, it is critical for the business community to actively participate in shaping a political environment conducive to economic growth. We must call for policies that stabilize the regulatory framework, encourage investment, promote strategic competition, and foster a united national spirit. Political harmony is inextricably linked to economic prosperity. As a nation, we must commit to building common ground, not for the sake of politics but for the growth of our economy and a predictable regulatory landscape.