U.S. Sens. John Boozman and Tom Cotton on Wednesday held a forum with State Chamber of Commerce members in Little Rock to discuss the current regulatory climate and its impact on businesses in Arkansas.
Throughout the discussion, the Republican lawmakers acknowledged the challenges facing Arkansas companies, with Cotton highlighting a notable “strain” on local businesses due to certain policies and economic conditions.
Boozman said a lot of the issues Arkansas faces may not be “flashy,” but that they underpin the success of businesses in the state. Infrastructure, energy, workforce challenges, taxes and the new farm bill are just a few of the sectors both Senators see a need for legislation in.
Farm Bill
Boozman started the forum by emphasizing the importance of passing an updated farm bill. Agriculture is Arkansas’ largest industry, adding around $16 billion to the state’s economy annually.
Boozman, a ranking member of the Senate Committee on Agriculture, Nutrition & Forestry, has been leading efforts to put “more farm in the farm bill.” He said that the 2018 farm bill was great for the time, but with inflation, “it simply doesn’t work” anymore. He also said he is working on a “reset” of the 2018 bill, but he can’t give a specific timeline for when it will be passed.
In a mid-June Senate floor speech, Boozman emphasized the need for action, noting that in Arkansas, “inflation-adjusted net farm income is expected to decline by more than 40% compared to two years ago.”
During Wednesday’s forum, Boozman said farmers need better safety nets.
“We’re not talking about doling money out to farmers,” Boozman said. Rather, farmers should be able to go to the bank and get reasonable insurance and loan rates, he said.
The proposed farm bill framework aims to create a farm safety net, double funding for trade programs, address a projected record $32 billion agricultural trade deficit, and increase funding for agricultural research to spur innovation and productivity among others.
“We are going to make sure that when we strike a deal, it’s going to be a meaningful deal that makes a difference,” Boozman said.
Workforce & Labor
When asked about labor shortages, particularly in skilled trades, that continue to be a significant challenge for Arkansas businesses, Boozman said there are programs that bring in skilled laborers for a short period of time, which is more effective than an open border.
“They stay for a while then they go home, and so it’s good for them,” Boozman said. “It’s great for us, as opposed to an open border, where you’ve got millions of people coming across the border, but you don’t know where they’re from.”
Boozman said there’s “a lot of opportunity” to expand those visa programs to help fill the labor gap.
Cotton said that once the border is secure, then “new conditions” where the country can look at other forms of legal immigration will be created.
On the domestic side, Cotton emphasized the need to train laborers where they are.
“My proposal would be more bottom up,” Cotton said. He said the U.S. should “encourage companies and educational institutions to serve their local communities, to provide the training that is needed to get a job the day the program ends, and keep that person in the workforce.”
Cotton said this would be different throughout the country, and throughout Arkansas depending on what businesses are in certain regions, but that “the key is not trying to design it from the top down in Washington D.C., but rather empower communities to serve the businesses in their communities by teaching the skills they need.”
Boozman’s farm bill framework touches on related issues, like proposing investments in rural communities to attract and retain talent. This includes funding for small business development, broadband expansion, water and energy infrastructure, as well as programs to increase access to rural healthcare, childcare and public safety.
2017 Tax Bill
Throughout the forum, Cotton stressed the importance of reauthorizing the Tax Cuts and Jobs Act of 2017, which lowered the corporate tax rate from 35% to 21%. The act expires in 2025.
Cotton said the government needs to have “sensible, reasonable regulation without making it impossible for businesses to produce their goods and sell their services.”
If the tax bill were to expire, Cotton believes there could be a loss of a “stable tax code with low, business-friendly tax rates.”
Cotton also said a stable tax code will promote economic growth, and therefore revenue growth. As far as what businesses can do, Cotton said “what they need is better policy out of Washington.”
“We can keep spending under control. We can tighten our belt a little bit next year. We need to reauthorize the tax bill,” Cotton said. “We need to keep tax rates low and simple to encourage people to get to work and more businesses to hire.”
Boozman also encouraged business leaders to take advantage of their “accessibility” to the Arkansas government and make their concerns heard.
In addition to the forum in Little Rock, the Senators also visited Jonesboro, Camden and Mulberry over Tuesday and Wednesday to discuss the Arkansas Meat Inspection Program, economic investments in the state, the defense industry and Arkansas steel.
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