Small business took a big hit from the Supreme Court’s recent decision on campaign cash. When the justices ruled -- in Citizens United v. Federal Election Commission -- that companies and unions can spend as much as they want, they gave big business, with its far richer coffers, a huge advantage over small firms with no money to spare.
The court’s ruling will further undermine fair market competition between large corporations and independent business owners, says Jeff Milchen, founder of the American Independent Business Alliance, a national nonprofit organization created to support independents.
More big-company pressure is almost a given. While no one expects firms to start spending all their profits backing political candidates, they don’t need to. Imagine the effect if they got together and defeated a critical committee chairman or swing vote. Or imagine a big-box store pressuring zoning officials to back a move that would overwhelm nearby smalls.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One probable result: Continued lax enforcement of federal contracting rules. Small business advocates have long railed at the Small Business Administration for failing to meet federal procurement goals, which mandate that 23% of the total value of federal prime contracts go to small business. There’s a bill in the hopper on Capitol Hill that would give this mandate more teeth through tougher rules and more transparency, but the court decision may boost opposition.
Also possible: Repeal of a key law -- the Robinson-Patman Act -- that helps keep large firms from using their buying power to negotiate lower prices. Moreover, the ruling could bolster opponents of legislation intended to strengthen the Sherman Antitrust Act.
Federal research money is at stake. There’s already a move afoot in Congress to loosen eligibility rules in the federal Small Business Innovation Research program. Doing so would hurt independent little firms because they’re sure to find themselves losing out to small rivals backed by big venture capitalists. The court ruling enhances the climate for looser rules.
Another potential battleground: Stricter food labeling laws favored by some small organic food products makers but opposed by megacorporations, says Milchen.
For weekly updates on topics to improve your business decisionmaking, click here.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The Best Places for LGBTQ People to Retire AbroadLGBTQ people can safely retire abroad, but they must know a country’s laws and level of support — going beyond the usual retirement considerations.
-
The AI Doctor Coming to Read Your Test Results
The Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
A Move Away From Free TradeThe Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
-
The Explosion of New AI ToolsThe Kiplinger Letter Workers and consumers soon won’t be able to escape generative AI. Does that mean societal disruption and productivity gains are right around the corner?
-
Trump’s Whirlwind Month of Crypto MovesThe Kiplinger Letter The Trump administration wants to strengthen U.S. leadership in the cryptocurrency industry by providing regulatory clarity.
-
Excitement Over AI Propels IT SpendingThe Kiplinger Letter IT sales set to surge in 2025 as businesses rush to adopt generative AI.
