Earning the Hispanic Vote: A Call for Candidates to Prioritize Small Business
As the CEO of the U.S. Hispanic Business Council (USHBC), I have witnessed firsthand the critical role small businesses play as the economic engine of this nation. I know Hispanic entrepreneurs and their businesses represent the fastest-growing segment of the U.S. small-business community.
As we approach the 2024 presidential election, it is clear that the voice of our community is more crucial than ever. Every 30 seconds, a Hispanic American turns 18 and becomes an eligible voter. Additionally, our own USHBC Member Survey, which polled 2,300 of our members, found that 35 percent of them identified as independent, making Hispanics an attractive target for any campaign. This rapidly growing voting bloc will undeniably influence the outcome of this election.
As an entrepreneurial and hard-working segment in the United States, Hispanic Americans are the backbone of the small business community. The policy platform that the USHBC is issuing reflects the priorities that we believe should be at the forefront of any serious campaign. These policies are not just a wish list; they are a roadmap to ensuring that the small business community, and by extension the Hispanic community, can continue to thrive and contribute to our nation’s prosperity.
Low Inflation and Cost of Living
The 2024 presidential election is being shaped largely by the economic concerns of everyday Americans, and rightfully so. Record-high inflation has burdened families and businesses alike, with prices for essentials such as groceries, gas, and housing remaining stubbornly high. This erosion of purchasing power is a direct threat to the standard of living for millions of Americans. For small businesses, the effects are even more severe. Inflation-driven cost increases in raw materials, wages, and other operational expenses have squeezed profit margins to the point at which many are struggling to keep their doors open. Higher interest rates, a consequence of the battle against inflation, have further compounded these challenges, making it more difficult for small businesses to borrow money and for prospective homeowners to afford mortgages.
As we look toward the election, it is imperative that candidates present clear, actionable plans to combat inflation and reduce the cost of living. This isn’t just about economic policy; it’s about ensuring that families can put food on the table and that small businesses can continue to be the lifeblood of our communities.
Strong Immigrant Workforce and Secure Borders
The U.S. success story is inextricably linked to its immigrant roots. Immigrants are not just part of our history; they are a vital component of our present and future. They make up 70 percent of agricultural workers, 30 percent of hospitality workers, 25 percent of construction workers, and significant portions of other critical industries such as manufacturing, STEM, and health care. The contributions of immigrant workers are not a drain on our economy; in fact, it is estimated that immigrants will add $7 trillion to our gross domestic product and $1 trillion to tax revenue over the next decade.
However, we cannot ignore the realities of our immigration system, which hasn’t seen a significant overhaul in nearly a century. Over the past four years, more than 8 million people have entered our country illegally, and the backlog of immigration cases is now pushing 4 million. This situation presents serious security concerns, exacerbated by the increase in fentanyl seizures and the growing influence of cartels in border communities.
Securing our borders while also ensuring a steady flow of legal immigration is essential. We need a balanced approach that recognizes the value of immigrants to our economy while addressing the legitimate concerns of border security. Beyond concerns about public safety, the reality is that border communities don’t have the infrastructure to absorb such rapid population shifts. Health care, education, social services, and public safety all become strained under these circumstances.
Transparent Tax Policy That Incentivizes Innovation and Growth
Our tax system should be transparent, simple, and fair, supporting small businesses, workers, and consumers alike. Unfortunately, recent changes to our tax policy have had the opposite effect. The Tax Cuts and Jobs Act, for example, limited businesses’ ability to fully expense research and development investments, resulting in a much higher tax burden for many businesses. This is not just an inconvenience; for some, it represents a 400 percent increase in taxes year-over-year. Additionally, the impending expiration of the small business deduction could lead to another 20 percent tax increase for small businesses.
A tax system that discourages innovation and growth is a tax system that fails the American people. Our current tax system hinders our ability to compete on a global scale. The United States has lost its position as the global leader in innovation. For instance, China files three times more patents than the United States every year. In fact, annually, they apply for more patents than the United States, Japan, South Korea, Germany, France, India, and the UK combined. We need policies that incentivize businesses to invest in new ideas, technologies, and methods, not penalize them for doing so. This is especially important for small businesses, which are often the most innovative and dynamic part of our economy.
Responsible and Strategic Energy Transition
The need to address climate change and transition to a clean energy economy is clear. According to the Pew Research Center, 74 percent of Americans support efforts to reduce climate change. However, the way in which we achieve this transition is a matter of intense debate. Rushed and overreaching regulations could have devastating effects on our economy, particularly for small businesses and industries reliant on affordable energy.
It’s important to remember that less than 50 percent of our oil consumption is for our cars. The rest is used in products such as fertilizers, pharmaceuticals, rubber, plastics, asphalt, and even cosmetics. For Hispanic Americans, 37 percent of whom work in energy-reliant industries such as transportation, agriculture, hospitality, construction, and manufacturing, an unbalanced approach to energy policy could mean job losses and economic instability.
We need a strategic, responsible energy transition that considers the needs of all Americans, including those whose livelihoods depend on affordable energy. This is not just an environmental issue; it’s an economic one, and it must be treated as such.
As we move forward, it is critical for the business community to actively participate in shaping a political environment conducive to economic growth. We must call for policies that stabilize the regulatory framework, encourage investment, promote strategic competition, and foster a united national spirit. Political harmony is inextricably linked to economic prosperity. As a nation, we must commit to building common ground, not for the sake of politics but for the growth of our economy and a predictable regulatory landscape.
