One CEO Says The Debt Ceiling Deal Reached This Week May Not Be Good News For Small Businesses.
Written by Ken Gaebler
Debt ceiling deal may mean slow growth for small business
One CEO says the debt ceiling deal reached this week may not be good news for small businesses.
Rohit Arora, CEO of Biz2Credit, a business which connects small business owners with business leaders and service providers, wrote in a post on Small Business Trends' website that raising the debt ceiling will likely mean slow economic growth through 2012, especially during the next three months.
"The uncertainty in the economy has shaken confidence and reduced consumer spending," Arora writes on the website. "When customers don't spend, it hurts small businesses [most]."
Arora said the increased emphasis on raising government revenue will likely lead to higher taxes for small business, as well as possible repeal of the waiver on payroll tax.
President Barack Obama said before signing the bill that defaulting would have "devastated our economy," but added that the deal is only the first step in debt reduction.
"Everyone's going to have to chip in, that's only fair," Obama said at a White House press conference. Obama added that Congress now needs to turn its attention to jobs, and Obama proposed and extension of the payroll tax and patent changes, among other things.
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