Small‑business witnesses urge tax certainty, H‑2B expansion and apprenticeships to address worker shortages

Small‑business advocates and hotel industry leaders told the House Education and Labor Committee that tax certainty, guest‑worker access and workforce training are top priorities to address persistent hiring shortages.

Elizabeth Mileto, executive director of the National Federation of Independent Business Small Business Legal Center, said NFIB members reported a surge in optimism following the November election but still face "historic inflation, a burdensome regulatory environment, and systemic workforce shortages." She said the 20% small‑business deduction in the Tax Cuts and Jobs Act of 2017 remains critical: "There are over 30,000,000 small businesses that are depending on this Congress to pass the Main Street Tax Certainty Act and make sure that small business 20% small business deduction is made permanent."

Rosanna Maietta of AHLA told members that hotels have raised wages "15% faster than the national average" and expanded benefits and apprenticeship programs, but still struggle to fill positions: "At the height of the crisis, America's hotels lost more than 680,000 workers. Now, we are down nearly 200,000 employees." Maietta urged Congress to preserve key TCJA provisions (bonus depreciation, small business deduction, like‑kind exchange) and to support legal guest worker programs, including H‑2B seasonal workers, which she described as essential for seasonal resorts that require large seasonal staffing surges.

NFIB and other witnesses cited an industry estimate that federal regulatory costs added roughly $1,800,000,000,000 in compliance costs between 2021 and 2024; Mileto said those costs fall disproportionately on small businesses that lack compliance staffs. Witnesses proposed steps: make the small business deduction permanent, enable portable benefits, ease barriers to apprenticeships and expand H‑2B access for seasonal employers.

Ending

Witnesses urged committee members to craft legislation that preserves the small business tax deduction, supports apprenticeships and clarifies classification tests to preserve contractor flexibility while enabling portable benefits and training that help retention and promote upward mobility in the hospitality sector.