The AAMA Government Relations committee is dedicated to serving the FEC and Route Operators. Working closely with John Russell and Margeaux Plaisted, of Dentons Global Advisors, Government Relations keeps an eye on all sectors of our industry and tirelessly keeps an eye out for all events that effect our industry.
Looking to see the latest AAMA's Government Relations Committee is working on? Check out the below for some of the pressing issues.
Make the Small Business Deduction Permanent
We encourage Congress to pass the Main Street Tax Certainty Act, making the Small Business Deduction permanent. Failure to do so will result in increased taxes for over 30 million small business owners. H.R. 4721 – S. 1706 Further, we support the Tax Cut and Jobs Act to make permanent reductions in individual and capital gains tax rates. The bill increases the standard tax deduction for individual taxpayers. It also increases and modifies the child tax credit and raises the contribution base for the tax deduction for charitable contributions. H.R. 976
Increase Competition to Reduce Credit Card Swipe Fees.
Small business owners are forced to pay swipe fees as high as 3 to 4 % per transaction. Given the lack of competition in the marketplace, the mega-banks who set these fees have no incentive to reduce them. We support the Credit Card Competition Act, which will create competition within the credit card network marketplace. The CCC Act will stimulate innovation and allow other service providers the opportunity to offer solutions that improve efficiencies while driving down costs. S. 1838
Impacts on Small Business
We encourage members of Congress to consider the impact on small businesses before implementing new regulations. Small business owners are ill-equipped to deal with matters of compliance, often having to handle these cumbersome and complicated issues themselves. Our industry suffered tremendously during the Covid 19 pandemic. Venues across the country were forced to close due to legislative mandates. Our recovery has been steady however, it was not without myriad challenges, including restaffing to appropriate levels forcing us to compete for unskilled, first-time workers with fast-food restaurants offering $20+ per hour. We have already had to increase pricing to cover higher labor costs, along with many other inflation related price increases. And inflation has been a primary cause of reduced customer visitation and per-cap spending, resulting in year-on-year revenues decreasing an average of 8 to 12%. In this atmosphere of inflation and rising costs, we oppose the Department of Labor’s April 23, 2024, rule change of the overtime exemption threshold for managerial workers as it is not in line with wage rates in many areas of the country, it disproportionately impacts small businesses and, it will likely create additional inflationary pressure due to price increases necessary to offset these additional expenses.
Impacts on Small Business
Additionally, we support a delay in implementation of the Corporate Transparency Act by passing S. 3635, (the Protect Small Business and Prevent Illicit Financial Activity Act). The House adopted companion legislation, (H.R. 5119) in a 420 – 1 bipartisan vote on December 12, 2023. The CTA was intended to combat illicit financial activity but has morphed into a bureaucratic nightmare targeted squarely at America’s smallest businesses. It subjects covered entities and their “beneficial owners” to vague and complex reporting requirements while putting their sensitive personal information at risk. Failure to comply with the new statute – even in cases amounting to nothing more than a paperwork violation – can result in stiff fines and criminal penalties.
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