A group advocating for independent businesses said Ohio lawmakers should work to prevent tax increases on small business owners and stem other cost increases they may face, including rising costs for health care and energy.
The National Federation of Independent Business included the suggestions among its top legislative priorities for the Ohio lawmakers this year. The rundown also included modernizing Ohio’s unemployment compensation system, workforce development reform and licensure improvements.
“As Ohio faces a fiscally tighter budget, lawmakers must avoid increasing taxes or shifting tax burdens on small businesses,” NFIB Ohio State Director Chris Ferruso said in a release. “Small business owners are reporting the highest level of optimism in years and are ready to grow their businesses – the Legislature should work to ensure this optimism builds and isn’t stifled by bad and costly policies.”
Nationally, the NFIB said its Small Business Optimism Index shows that small business optimism is on the rise and has reached a six-year high.
“Optimism on Main Street continues to grow with the improved economic outlook following the election,” NFIB Chief Economist Bill Dunkelberg said in a release.
In Ohio, to help control small businesses’ costs, NFIB wants to preserve the business income deduction. It says any “erosion” of the deduction or increased property tax is a tax increase on small businesses.
The local NFIB supports modernizing the Buckeye State’s unemployment compensation system to provide long-term solvency and certainty for employers. The business group also said it opposes policies that increase pressure on health insurance premiums and supports cost transparency and incentives for employers to provide health insurance.
The federation supports policies that provide reliable and affordable energy and prevent energy cost increases for small businesses. In addition to opposing policies that increase small employers’ energy costs while giving large energy users discounted rates.
To reform workforce development and licensure, NFIB supports TechCred in compensating employers. The program helps residents learn new skills and employers upskill their workforce, which officials say is needed in a “technology-infused economy.”
The group also said it supports licensure reform. Overhauling Buckeye State’s licensing requirements has been a hot topic, and legislators took some action during the last session to reform the state’s mandates.
Earlier this month, Republican Gov. Mike DeWine signed House Bill 238, which ostensibly revises and streamlines the state’s occupational regulations and concludes the Occupational Licensure Review. Proponents say the measure better aligns Ohio with neighboring states and helps mitigate the state’s skilled workforce shortage.
However, others said lawmakers could go even further to streamline licensing.
It builds on Senate Bill 255, which lawmakers passed in 2018. Under this earlier legislation, lawmakers must renew all occupational licensing boards at least once every six years.
Last year, the Senate Government Oversight Committee reviewed one-third of all occupational licensing boards and licenses. The review followed a similar one the House State and Local Government Committee conducted in 2023.
“By streamlining processes and removing unnecessary barriers, we’re making it easier for Ohioans to start and grow their careers right here at home,” state Rep. Roy Klopfenstein, R-Haviland, said in a release. “With this legislation now signed into law, we’re proud to have worked collaboratively with agencies to ensure a balance between reducing red tape and maintaining standards that protect health, safety, and quality for all Ohioans.”
HB 238 captures many of the recommendations lawmakers included in their report.
“We are cutting bureaucratic red tape and improving government efficiency one small step at a time,” state Rep. Sarah Fowler Arthur, R-Rock Creek, said in a release. “By eliminating obsolete licenses, reducing fees for others, and cutting red tape, we are lowering barriers to entering the workforce, while maintaining high standards for health, safety, and consumer quality.”
