Clinton’s Small Business Plan is More Government

Democrat presidential nominee Hillary Clinton will roll out her plan to make American small businesses great again, or in her words: “to support small businesses at every stage.”

“Hillary Clinton’s plan is one part big government and one part empty rhetoric,”Heritage Action’s chief executive officer Michael A. Needham said. “Clinton accurately identifies some of the problems facing small businesses and she will find willing partners if she is willing t o rollback the Obama administration’s regulatory regime, but the reality is that far too many of her solutions imagine the federal government as an active and equal partner in small business activity. That is not what business owners of any size need.”

Occupational licensing is increasingly a barrier to entry, as Heritage Action explained in 2015:

“Excessive occupational licensing makes it difficult for dislocated workers to apply for many jobs. Reduced competition from the unemployed raises the earnings of license holders at the expense of job opportunities and higher prices for everyone else. Such labor cartels hurt the economy and most workers.”

Clinton’s approach here basically boils down to this: “Hillary will make it easier to start and grow your business by offering training and mentoring programs that help guide you through the challenges entrepreneurs face.” That is not a recipe for removing excessive licensing burdens, it is a recipe for greater government involvement — a village approach, if you will.

Securing financing can be a real challenge, and has been made even more difficult by the Obama administration’s Dodd-Frank financial overhaul. But expanding government with the so-called Small Business Administration and deferring student loans is not the right approach. If Clinton is serious about removing the regulatory burdens imposed by Dodd-Frank, she should look to the House Financial Services Committee for guidance.

Costly tax compliance is a real burden, both in terms of complexity and dollars confiscated. Clinton’s plan would increase complexity by creating different standards for various small businesses, and many business owners are likely to be caught up in her larger tax increase plans.

Obamacare hurts small business owners and their employees, and Hillary Clinton will keep Obamacare. Period. End of story.

Clinton’s proposal envisions small businesses as the federal government’s customer — an interesting observation in and of itself — but the reality is that Clinton’s federal government sees itself as a business partner eager to work with — and thus dictate to — small businesses.

Conservatives have rightly criticized the big businesses cozy relationship with the federal government, and Clinton’s proposal for small businesses would only serve to accelerate the symbiotic relationship between smaller businesses and the federal government. That will move our nation in the wrong direction and undermine economic growth in the long run.

*Originally published at, click here.

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