Issue Position: Supporting Small Businesses

Issue Position

Protect small businesses from over-regulation and over-taxation

Business taxes need to be simple and fair. The playing field needs to be leveled so that small and mid-sized businesses are not at a disadvantage. American businesses produce the world's best goods and services, but trade barriers limit our access to new markets that could help us continue to create robust growth.

Streamline occupational licensing

Nowhere is overregulation more evident than in Florida's small-business regulation. There is evidence that the balance of occupational licensing has shifted away from protecting consumers and toward limiting the supply of workers in various professions. At the same time, the low supply of workers drive up the price of services in states. Occupational regulations frequently impose significant costs on consumers without actually improving the quality of professional services. There are 190 licensed jobs in Florida, yet more restrictive licensing requirements do not necessarily lead to better quality service or care; for example, with no signficant differences in quality, dentists charge 11 percent more in states with the most restrictive licensing requirements.

Interstate commerce

The federal government should not interfere with how states and localities do business, but the U.S. Congress does have a Constitutional obilgation to regulate interstate commerce. Florida's current system of occupational licensing and regulation should be reassessed because it stifles our economy, raises the cost of living, and makes it much more difficult for ambitious young professionals to achieve their goals. Licensing restrictions may result in as much as between $34.8 billion and $41.7 billion in lost economic activity. High burdens of occupational licensing may be partially correlated to decline in interstate mobility. The federal government therefore has a responsibility to ensure the states are not getting in the way of small businesses.

Help small businesses access capital

According to the Florida Chamber of Commerce's Florida Small Business Index Survey, 31 percent of small business owners said "access to capital" was the top issue facing their small business. According to the Index's results, of those small businesses who sought financing during the last 6 months, 80 percent were unable to obtain it. Further of those who currently seeking capital, 81 percent believe it will be harder to successfully obtain financing in the next 6 months.

Reducing barriers to expansion and growth

Although the U.S. economy is improving, small business lending is nowhere near the levels seen before the Great Recession and access to capital continues to be a significant barrier to the expansion and growth of small businesses in Florida. According to the Federal Reserve Bank of Cleveland, loan standards are now stricter and credit standards higher than before the Great Recession, especially for small businesses.

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