CHAMBER CONGRESS CHATS

Derek Rusher and representatives from around the state spoke with Congressman Adrian Smith as he provided an update on legislative measures via a webinar.

Congressman Smith described the frustrations across our economy as employers are seeking out new employees to help businesses continue moving forward and growing. Supply chains are disrupted, especially amongst the housing, construction, and automobile markets. There are numerous challenges we are facing now. These supply chains have been hit and consumers will feel the repercussions of that-- a result could be inflation.

Congressman Smith noted that he is “disturbed by the Secretary of the Treasury’s comment that ‘inflation is good for the economy.” He sees how this might reign true for buying or selling investments and seeds, but the economy begs for more investment than just in small accounts. Congressman Smith felt encouraged to hear that President Biden’s administration is allowing the $300 unemployment bonus to expire in September, but this has not been passed. Unfortunately, the congressman noted that the President has deferred other directions that are not unifying our country but also poses some major challenges in our economy. New money is being printed in record ways.

Congressman Smith plans on joining a hearing with the Secretary of Health and Human Services to discuss some poverty programs. Bipartisan interests exist in these programs in order to help get folks off of the sidelines of the economy; unfortunately, even though this interest exists, the reforms are not moving forward. Issues such as these are causing challenges for everyone, especially within the workforce, and those experiencing tax change.

The proposed tax increase, such as capital gains and estate tax, is particularly burdensome to agriculture and small businesses. In fact, it is so extreme in its proposal that a lot of folks across the political spectrum agree that it would cause lock-out or a penalty for selling assets. This could result in those holding such assets refraining from selling. This is a proposed tax increase that will decrease revenue. Congressman Smith recognizes social objectives existing for quite some time, such as the mortgage and interest reduction. But this new tax proposal is taking things to a new level. While the taxes are intended to tax the so-called wealthy, the impact will very likely be less revenue and that is harmful to the future of our country.

The issue of property tax has continued to influence Nebraska communities, especially those impacted by the agricultural industry. Schools across the state rely heavily on property taxes and feel the heartache of agriculture. Derek Rusher expressed his belief that if agriculture is doing well, then businesses and schools can thrive. Property taxes are influencing how farmers, ranchers, cattlemen, and producers are doing business. Congressman Smith’s main concern with this is consumer safety and how consumers can continue getting access to meat products.

In 2017, taxes changed and it actually helped the economy as revenue was being generated and business was booming. However, the COVID-19 pandemic put a stop to that. So while our country is trying to recover, we look to our leaders in the house. Congressman Smith is happy to see things opening again, but Speaker Pelosi incidentally refuses to allow things to get back to normal in the House, even though a large majority of those in the White House and Capitol have been vaccinated. Congressman Smith stated he is willing to speculate that this is a highly concentrated number of people who have been vaccinated and there are calculated moves on the Speaker’s part. This sends a message across America. Congress will reconvene next week and Congressman Smith hopes to find ways to ease the anxiousness of America.

A new mandate for wage increase is circling in the legislature, but Congressman Smith stated that he strongly believes that now is not the time to mandate a wage increase. The market for wages is so strong, and it was even before the pandemic, but now there are folks in the hospitality industry who are experiencing the worst time for such mandates. The re-opening of the hospitality industry should be a priority and there are workers readily available to fill those positions. The jobs report created by President Biden’s staff came back with results revealing that people are afraid to go back to work due to the pandemic and are also unable to find childcare, so they are not able to return to work. The congressman pointed out that there is a defense towards being afraid to go back to work-- that is the vaccine. The issue of not finding childcare is a function of the workforce directly.

The new wage is projected to be $15 an hour with discussion for the potential of $20 an hour, as an attempt to normalize the $15 rate. Congressman Smith believes that automation of jobs will occur like never before. Businesses will do as much as they can to survive, even if that means losing the opportunity to provide a large number of jobs. The mandate will hurt those trying to start with entry-level jobs, such as our youth who are seeking that first job to help them advance in their careers. Small businesses are concerned about having to shut their doors because they will not be able to pay employees. Mid-level management types of positions will need a raise also. For example, if a mid-level employee is currently receiving $15 an hour and the mandate raises minimum wage, they will be needing a raise to compensate. Some businesses are trying to be competitive and offer higher starting wages and more benefits to draw in new employees.

Kearney Area Chamber of Commerce President/CEO Derek Rusher explained how Kearney has an interesting challenge. People are wanting and willing to go back to work, but many positions are being left unfilled-- causing a workforce crisis. This is recognized now more than ever as the price of consumer products and the housing market prices rise. Derek Rusher expressed his viewpoint of Nebraska being a great place to work and do business. He asked for the congressman’s opinion on what Kearney can do to help with the workforce and housing issues.

Congressman Smith responded by explaining how the common thread issues before the pandemic compared to now seem to have similar traits. These traits being the strong need for job training and recruitment. He tipped his hat to the Nebraska community colleges for their efforts in reinforcing that. As for additional issues, he is looking to model a training program similar to what the Arizona Homebuilders Association set up in the Arizona state prisons which allowed prisoners to go through a job training program during their time of incarceration. For example, one prisoner completed his electrician training and was able to find a well-paying job just one week after being released. This resulted in him being able to provide for his family and gaining involvement in his community. Congressman Smith said across America, there is a conversation about corrections and incarcerations. “This gets us thinking more about how prisoners can transition back into the economy.”

Thank you to our sponsor of this webinar, Olsson!