John Riley, owner of John’s Computer Service in Staunton, said on Mar. 12 that proposed legislation in Richmond could increase costs and regulations for small businesses in Virginia.
Riley said that running a small business is already challenging due to thin margins and rising costs, and he warned that new legislative proposals may make it even harder for businesses like his to stay open. He said, “Running a small business is a constant balancing act between cash inflows and outflows, managing personnel, and maintaining client satisfaction. I’ve owned a small computer sales and repair business in Staunton for 30 years. Margins are thin and almost every dollar that comes in has already been spent. Constantly increasing costs and ever-changing business environments make for a formidable challenge in the best of times. These are not the best of times. Sadly, commonwealth lawmakers are poised to make times even worse.”
He pointed to recent discussions in the General Assembly about tax increases, including HB 978 which would have imposed a new 4.3% tax on services and labor. Although this bill did not pass, Riley noted it may be reconsidered next year as part of what he described as a broader trend toward increased regulation.
Riley also raised concerns about proposals to rejoin the Regional Greenhouse Gas Initiative (RGGI), which would require power producers to buy carbon allowances through state-run auctions with proceeds funding low-income housing and flood preparedness programs. He said this approach could further raise electricity costs for businesses: “In 2025, RGGI allowance prices reached their all-time high. That means in addition to already skyrocketing electric costs, we will pay even more.” Riley explained that when operating expenses rise, small businesses must either absorb those costs or pass them on to customers.
He criticized additional mandates under consideration by lawmakers that he believes disproportionately affect smaller companies compared to large corporations: “Too often, policymakers assume every business is the same. What may work for a Fortune 500 company may not work for a small business where $500 may be a fortune.” Riley argued that increased paperwork and compliance requirements take time away from serving customers and can reduce revenue.
Riley also addressed efforts by some legislators to weaken or repeal Virginia’s right-to-work law: “While critics say that Virginia’s right-to-work law is anti-union, that isn’t accurate… It protects worker choice and has been an important factor in Virginia’s ability to attract jobs and investment from larger companies.” He said changes could discourage job creation and harm local businesses.
Concluding his remarks, Riley called on elected officials to consider how policy decisions impact small businesses: “Politicians should work with small businesses, not create new obstacles that make it harder for them to succeed. Remember, we are the backbone of the economy, but our back can only carry so much.”
