news

WASHINGTON — Today, the House Small Business Committee held a hearing examining the impact of the One Big Beautiful Bill Act on American small businesses.

During the hearing, Ranking Member Nydia M. Velázquez (D-NY) argued that the bill’s tax cuts overwhelmingly benefit the wealthy while small businesses are being squeezed by tariffs, rising health care costs, and soaring energy prices.

Velázquez pointed out that 55 percent of the pass-through deduction goes to the top 1 percent of earners, while the average middle-class small business owner receives roughly $2,900. She noted that to pay for these tax cuts, Republicans slashed Medicaid for 7.8 million people and cut $187 billion from SNAP, eliminating customers that small grocers and local food businesses depend on.

"Republicans called this hearing to celebrate their sole accomplishment, but small businesses are not celebrating today. They are surviving — barely," said Ranking Member Velázquez. "The One Big Beautiful Bill adds over $4 trillion to the national debt while transferring wealth from working families to millionaires and billionaires. Whatever relief people did get has been offset — by tariffs, by health care, by gas, and by the growing cost of living crisis that Republicans have refused to address."

Velázquez also highlighted the toll of the administration's tariff regime, noting that the average small business importer paid $306,000 more in tariffs over the past year, and that the expiration of enhanced premium tax credits resulted in an average premium increase of $1,500 for over 4 million small business owners.

Michael Negron, Senior Fellow for Economic Opportunity at the Center for American Progress, testified that the benefits of the law flow to a narrow, wealthier set of businesses while the Trump agenda drives up costs across the economy. He noted that the White House promised families would see $1,000 more in tax refunds, but the actual increase has been roughly $350, with taxpayers earning under $100,000 seeing just $210 more on average.

"When reviewed in full context, the story of the OBBBA is that any benefits it offers in the form of tax cuts are almost entirely enjoyed by the wealthiest Americans and businesses. The few benefits it offers to mom-and-pop small businesses are vastly outweighed by its cuts and the Trump administration agenda of tariffs and waging war against Iran. This is not a legacy to celebrate today," said Negron.

###