President Barack Obama addressed a Joint Session of Congress on Wednesday night in an attempt to save his top domestic priority, health care. During the speech, President Obama emphasized his goals, including extending coverage to those who don’t have it and mentioned how businesses would be required to offer their workers coverage or pay a penalty with some exemptions. An employer mandate could have significant economic consequences. According to the National Federation of Independent Business, “forcing employers to offer health insurance, plain and simple, will cost America jobs and revenue, and inhibit small businesses from growing. It’s a bad idea any time, but is particularly destructive in the current economic environment.”
Review of House Activity:
On Thursday the House passed H.R. 965, the Chesapeake Bay Gateways and Watertrails Network Continuing Authorization Act. This bill would permanently reauthorize funding for the Chesapeake Bay Gateways Initiative and authorize “such sums as necessary” to carry out the programs under the Act. In addition, the legislation requires the National Park Service to work with state and local governments and the private sector to provide assistance to communities, museums, historic sites, and natural parks around the Chesapeake Bay to educate people about conserving and restoring watershed. The program costs $3 million annually.
Legislation and Letters Circulating Around the House:(If you would like to publicize your small business effort in Congress, please email Paul J. Sass at Paul.Sass@mail.house.gov)
Rep. Herger (R-CA) Seeks Cosponsors for H.R. 275 – In 2006, Congress enacted a 3% withholding tax on payments to contractors doing work for federal, state, and local governments. This requirement is currently scheduled to go into effect in 2011. Since many contractors are small businesses and operate on narrow profit margins, the 3% withholding tax will create severe cash flow problems and ultimately add to the cost of government contracts for national defense and vital infrastructure projects. H.R. 275 would permanently repeal this unfair and damaging tax. For more information, or to co-sponsor this legislation, please contact Jay Sulzmann in Rep. Herger’s office at 5-3076 or jay.sulzmann@mail.house.gov.
Review of Senate Activity:
On Wednesday, the Senate passed a travel promotion bill that creates a nonprofit corporation to promote the United States abroad as a tourist destination. The bill, S. 1023, Travel Promotion Act of 2009, was a priority of Senate Majority Leader Harry Reid, whose state, Nevada, relies heavily on tourism. The bill authorizes $10 million for FY10 with future corporate matches to reach as much as $100 million. Funding for this bill would come from a $10 fee assessed to mostly European travelers. Some conservatives raised concerns with the proposal being an unnecessary expansion of government.
This week, the Senate shuffled around some top committee posts prompted by the death of Senator Edward Kennedy (D-MA). Senators Tom Harkin (D-IA) took the top spot at the Senate Health, Education, Labor and Pensions Committee (HELP) and Blanche Lincoln (D-AR) claimed the chairmanship of the Agriculture, Nutrition and Forestry Committee. Senator Christopher J. Dodd (D-CT), who was behind Kennedy in seniority at the HELP Committee, decided to stay in his current post as chairman of the Banking, Housing and Urban Affairs Committee.
House Small Business Committee hearing summary this week:
On Wednesday, September 9, 2009, the House Committee on Small Business held a hearing to examine the effects of the H1N1 influenza virus on small businesses and health care providers. Witnesses included Dr. Rebecca Blank, Under Secretary for Economic Affairs, U.S. Department of Commerce; Rear Admiral Anne Schuchat, Assistant Surgeon General, United States Public Health Service, Director, National Center for Immunization and Respiratory Diseases, Centers for Disease Control and Prevention; Bridger McGaw, Acting Assistant Secretary for the Private Sector, U.S. Department of Homeland Security; Jim King, M.D., Chair of the Board of Directors, American Academy of Family Physicians; David Tayloe, M.D., President, American Academy of Pediatrics; Anthony Demangone, Director of Regulatory Compliance, National Association of Federal Credit Unions (NAFCU); Harold Jackson, President and CEO, Buffalo Supply Company; and Mary Kay Thatcher, Director of Public Policy, American Farm Bureau.
The first panel’s witnesses discussed federal efforts to prepare businesses for the H1N1 outbreak, and coordination among the agencies. Both panels mentioned the stress that H1N1 could place on small medical practices and the financial impact that a pandemic could have on small firms. The second panel’s witnesses addressed the potential effect that the H1N1 influenza virus has had on their companies. Mr. Demangone relayed lessons learned from NAFCU’s preparedness for Hurricane Katrina, the Avian flu and other disasters. Mr. Jackson mentioned specific steps his business has taken to prepare for H1N1. Dr. Tayloe said children are especially vulnerable to H1N1, so small pediatric practices are expected to be particularly strained. Dr. King mentioned that family physicians are the front line of defense against diagnosis and treatment of the flu, and if small family physician practices suffer employee absences, they may cease to function. Ms. Thatcher said H1N1’s impact on rural areas and surrounding communities will be tremendous, and that domestic pork consumption and exports have markedly declined.
This hearing was an opportunity to examine the economic impact of H1N1 on all small businesses, and discuss the importance of preparedness planning.
Other Small Business off the Hill:
The Heritage Foundation released a white paper in response to the Center for American Progress on how health care legislation would impact small business.
NFIB and Google will be hosting a virtual summit this Tuesday, September 15th for small business owners.
Looking Forward:
Subcommittee on Rural Development, Entrepreneurship and Trade Hearing, September 16, 2009, 10:00 am entitled, “The Economic Impact of Auto Dealer Closings on Rural Communities.” 2360 Rayburn House Office Building.
