DEVELOPMENTS THAT MATTER

Looking Ahead After Tax Reform

U.S. Chamber Executive Vice President Neil Bradley talked with RSM US Chief Economist Joe Brusuelas on Wednesday about the benefits of recently passed tax reform and the negative effects tariffs have on businesses.

Why it matters: Permanent, pro-growth tax policy in the One Big Beautiful Bill Act will enable businesses to invest in innovation and workers, which strengthens communities. But at the same time, tariffs increase costs and disrupt supply chains.

Pro-growth tax policy: "One of the things that I think really is growth-enhancing are the permanent expensing of R&D and the bonus depreciation," said Brusuelas.

• Bradley agreed, noting the technological change we see: "We're talking a lot about what artificial intelligence, combined with robotics, and it's going to require retrofits and new ways of doing things.
• "Reducing the after-tax costs of those investments is going to make those easier. It's going to lead to more investment, and that's what's really going to spur growth."

However: While tax policy is in a good place, tariffs remain a headwind. A Census Bureau survey found that 50% of manufacturers, wholesalers, and retailers reported that the price they pay for goods and services in the last two weeks increased, and 40% said they will raise prices in the next six months.

• Small businesses are particularly impacted. "If you take the [tariff] announcement earlier this week... Japan, South Korea, Cambodia, Indonesia, and if you look just at those countries, you're talking about around 70,000 American small businesses who import, and if the rates announced take effect August 1, you're looking at a $27 billion tax increase annualized on those small business importers," Bradley said.

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ALL BUSINESS IS LOCAL

Growth Drives Opportunity

Growth starts where we live, work, and connect. How can we strengthen economic growth, sustain it, and ensure that it is felt in every local community and in every American's life?

The State of American Business 2025 shows that the decisions made in Washington affect people, businesses, and communities across the country. Our leaders must prioritize growth and opportunity for all Americans.

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TOP OF MIND

Big Win Against Biden-Era Negative Option Rule

The U.S. Chamber secured a major legal victory for American businesses after the 8th Circuit Court of Appeals decided to halt a Biden-era Federal Trade Commission (FTC) rule that would have imposed burdensome requirements on nearly any business offering a subscription plan.

• The U.S. Chamber and the Georgia Chamber of Commerce sued the FTC in 2024.

Why it matters: This ruling is a win for U.S. companies of all sizes against government micromanagement. The rule would have deterred businesses from offering Americans more options and lower prices.

Our take: "The court ruled that federal agencies must follow the rulemaking process, including conducting a thorough analysis of how much proposed regulations will cost consumers and businesses," said U.S. Chamber Executive Vice President Neil Bradley. "The decision provides a safeguard against rushed rulemaking and reinforces the importance of agencies addressing public concerns."

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