Small business owners in the U.S. and Louisiana are gushing with optimism as the economy surges and last year's federal tax cuts kick in, according to the latest National Federation of Independent Business report.
The NFIB Small Business Optimism Index survey clocked in at 107.9 this week, the second highest in its 45-year history and just a tick below the all-time record of 108 in 1983.
“Small business owners are leading this economy and expressing optimism rivaling the highest levels in history,” said NFIB President Juanita Duggan in a statement. “Expansion continues to be a priority for small businesses who show no signs of slowing as they anticipate more sales and better business conditions.”
More than 4,000 Louisiana businesses are members of the NFIB, which is in the midst of conducting its annual in-state round-table discussions.
The latest is scheduled Thursday in Shreveport with 4th District U.S. Rep. Mike Johnson, R-Benton, and about a dozen invited business owners.
NFIB Louisiana director Dawn Starns said business owners and managers here are similarly enthusiastic as those nationally, which translates to more job creation.
"Many of our members feel really good about expanding and hiring more people," Starns said in an interview with USA Today Network.
Almost a quarter of those surveyed, 23 percent, said they plan to create new jobs.
Starns said her members, the largest collection of business owners in the state, share U.S. sentiment about the benefits of federal tax cuts as well as relief that Louisiana's budget crisis was solved with a minimal tax impact to them.
"The feedback has been positive because the sales tax increase is less than it was previously with the temporary tax," she said. "That eliminates the uncertainty that we've been faced with for the past two years."
A temporary 1-cent state sales tax expired June 30. The Legislature and Gov. John Bel Edwards passed a new half-cent sales tax to replace it that will be in place for seven years.
Starns said NFIB will focus on lobbying for a more streamlined tax system in Louisiana, including a top priority of creating a single state sales tax collector. Efforts to move such a bill in the Legislature have failed in the past.
"The complexity of dealing with our broken tax system is a complaint virtually all of our members share," she said.
One drawback of the surging economy: 37 percent of those survey said they can't find qualified workers to fill open jobs.
“Small business owners have never been so optimistic for so long, helping to power the second longest expansion in history,” said NFIB Economist Bill Dunkelberg. “Despite challenges in finding qualified workers to fill a record number of job openings, they’re taking advantage of this economy and pursuing growth.”
Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1
