Betty Neighbors, president of TERRA Staffing Group in Everett, was recently appointed to the board of directors of the nation’s leading small-business advocacy group, National Federation of Independent Business, based in Washington, D.C.
As one of 15 board members, she’ll oversee the business and financial operations of the group. She’ll also oversee the group’s political activities, a task she expects to be interesting in an election year, since she’ll be directly involved with issuing endorsements and financial support to federal and gubernatorial candidates. Her term is a three-year commitment. She answered a few questions about the state of small business in Snohomish County.
Q: What is the No. 1 challenge facing small-business owners in the county?
A: Even though most local businesses, including mine, have been enjoying a vibrant local economy, posting strong revenue numbers, and creating new jobs here in Snohomish County, still we all live under a specter of uncertainty, not only about what turn the economy may take, but about what our local and state governments will impose on us next. We lay plans, forecast revenue and expenses, and then at any time can be sent reeling by a new municipal tax, state agency rule or legislative mandate that imposes additional taxes, fees or regulations that translate into unexpected costs on our businesses. Agency rulemaking can seem capricious and is done without consent from the legislature. For example, my industry was informed by Department of Revenue a few years ago of their decision to triple our Business and Occupations tax, a tax on our gross receipts. The ruling was issued in September of that year and the new taxing rate was retroactive to January!
Q: What are some solutions, ideas you have for addressing this challenge?
A: It is imperative for us to educate local electeds and state lawmakers of the impact of their decisions have on small business and our ability to continue to create jobs and contribute to the local economy. While many laws may be well-intentioned, there are often unintended consequences to be considered.
Small- and independent-business owners have an important story to tell and no one can tell it better than they do. I encourage business owners to get to know their legislators and invite them in to their businesses for a visit. Also to talk to them during session and throughout the year about what small business needs to survive. Additionally, we can, as individuals, with our trade associations and through NFIB support small business-friendly candidates for public office. We can talk to our employees about the candidates and ballot issues we’re supporting and why it matters to their economic future to get involved, too.
Q: What other issues are local small-business owners concerned about?
A: More and more small businesses are unable to provide medical benefits to their employees due to skyrocketing premiums they can no longer afford. In Washington, insurance mandates (more than 50 now) and limited choice of insurers have been major factors. The Democrat-controlled legislature has repeatedly refused to enact a simple and reasonable solution to this problem. For several years, they have refused to pass a bill allowing small employers the option of buying a more basic insurance plan (formerly called major medical) to be able to insure their employees with coverage for the higher-cost health events. The legislature has thereby contributed to the problem of more and more uninsured citizens and the resulting strain on taxpayer-funded health-care systems and personal financial stress of unpaid medical bills.
Q: Why type of changes on the national level might address some of these concerns?
A: NFIB and many other business organizations have fought for years for common sense solutions like association health plans. Association health plans would allow industry groups or business organizations like NFIB to purchase coverage nationally to help control costs for their members. Labor unions are allowed this privilege but businesses are not.
Q: Why is an organization such as NFIB important?
A: Small-business owners have little or no time to testify in Olympia or lobby in Congress. They need a full-time advocate, but few can afford one, so NFIB fills that very important role for the small business owner. Unlike trade associations which bring people together by industry, NFIB members join together by virtue of the fact they are owners of small and independent businesses. The members are a diverse group consisting of high-tech manufacturers, retailers, farmers, professional service providers and more. When NFIB speaks on its members’ behalf, lawmakers in state legislatures, Congress and the White House listen. In fact, Fortune magazine has acknowledged NFIB as the top-ranking business lobbying organization in Washington, D.C.
NFIB sets its public-policy positions by regularly polling members and acting on their advice. Once the member ballot is tallied, NFIB carries a unified message to Congress and all 50 state legislatures on behalf of small and independent business owners.
Debra Smith: 425-339-3197 or dsmith@heraldnet.com.
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