This week, I wanted to talk about some of the anti-business legislation, or in some cases, missed opportunities where pro-business policies failed to gain traction. In a challenging but recovering economic climate, it’s critical that we, as lawmakers, support policies that foster growth, encourage investment, and reduce unnecessary burdens on employers. Unfortunately, not all recent legislative actions have moved in that direction.

One example is the minimum wage bill, HB 1928, which passed the legislature but was ultimately vetoed by the Governor. This bill would have raised our state’s minimum wage to $15 an hour by 2027. While increasing the minimum wage may sound appealing, it often has unintended consequences for small businesses and overall economic growth.

The reality is that all businesses, whether it’s Walmart or my daughter’s ice cream shop, are in business to make a profit. Any increase in operating costs must be recovered somehow. Small businesses like restaurants, independent grocery stores, or small manufacturing companies typically operate on very thin margins. They often have no choice but to raise prices or reduce staff, neither of which benefits the business, its employees, or the broader economy.

Large corporations like Walmart, with higher profit margins, can absorb the added costs more easily and may avoid layoffs. However, they won’t simply absorb the cost without consequence; they'll raise the prices of their goods to maintain profitability. This results in everyday items like groceries, clothing, and furniture becoming more expensive, not because they’re worth more, but because producing and selling them has become more costly.

On the other hand, a truly pro-worker and pro-business idea that wasn’t even introduced at the state level is the proposal to make tips tax-exempt. This would be a meaningful benefit for service industry workers who rely heavily on tips for their income. Many restaurants, due to tight margins, are unable to pay full minimum wage and depend on tipping to make up the difference. By exempting tips from taxation, these workers would take home more of what they earn, without placing additional financial strain on the businesses that employ them. This idea already received unanimous, bipartisan support in the U.S. Senate, yet it wasn’t even granted a committee hearing in our state. I’m hopeful that next year we can come together to advance this commonsense policy that supports both workers and businesses.

Finally, I want to talk a little about my dealer discount proposal. I introduced this legislation last year, but it needed more time, and I’m currently working on reintroducing it next year. The concept is simple: more and more people are paying with credit cards, which means small businesses are paying more and more in credit card processing fees. These fees can quickly add up and eat into already tight profit margins.

To help offset this burden, I proposed that small businesses receive a small discount on the sales taxes they collect on behalf of the state, known as a “dealer discount.” Under this proposal, if a business pays its state sales taxes on time, it would receive a small but meaningful tax credit. Currently, the existing credit is minimal and nowhere near enough to cover processing fees. I’d like to expand it so it can help cover those costs, reducing the need for businesses to raise prices.

This issue is especially important to me, not only as a small business owner, but also as Vice Chair of the Small Business Commission. I believe this modest credit could provide real relief to our small business community at a relatively low cost to the state, and I’m excited to present this idea at our next meeting.

My staff and I are always here to assist you with any issues or concerns. Please don't hesitate to reach out if we can be of service. You can reach us at 434.374.5129 or by email at [email protected].