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Straight Talk E-News
Small Biz Straight Talk
Washington,
May 15, 2009
Friday, May 15, 2009 News from Ranking Member Sam Graves and Committee Republicans: • Rep. Schock to suspend the payroll tax for small businesses and their employees for six months: Must-Reads from the Week: Administration and the SBA: Review of House Activity: • On Wednesday, the House unanimously passed the Weapons Acquisition System Reform Through Enhancing Technical Knowledge and Oversight Act of 2009 or WASTE TKO Act. The legislation makes significant changes to DOD’s major acquisitions programs to lower cost to the taxpayer, save time, add transparency to the procurement process, and ensure that we get the weapons capabilities we need to keep America safe. This bill is headed to a closed conference where differences with the Senate bill will be resolved. Legislation and Letters Circulating Around the House: • Rep. Latta (R-OH) Seeks Co-Sponsors for the Responsible Reinvestment Act of 2009 (HR 1763) - Rep. Bob Latta is seeking cosponsors for the Responsible Reinvestment Act of 2009. Small businesses continue to bear the burden of this economic slowdown, and they need relief to be able to survive and continue to remain in business. This legislation focuses on areas that will not only help small businesses grow throughout the country, but also help put our neighbors back to work. Specifically, the bill includes a 20% tax cut for small businesses, equal to 20% of total income for the business; permanently repeals the estate tax; increases expensing for small businesses to $500,000; full first year expensing for farm and manufacturing equipment; and full deductibility for the self employment tax in relation to health premiums. The future of our country depends on a proactive approach to creating viable solutions for small business owners to succeed and remain profitable. Small businesses are the lifeline and heartbeat of our nation’s economy as these are the companies that we rely on for products and services. For more information, or to co-sponsor HR 1763, please contact Allison Witt at allison.witt@mail.house.gov or 5-6405. Review of Senate Activity: • The Senate Small Business and Entrepreneurship Committee held a hearing yesterday on how the small business provisions of the American Recovery and Reinvestment Act are being implemented and to find alternative sources of financing for small business owners. The hearing’s focus was on increasing access to capital for small business, a common theme discussed by both chambers over the course of the year. To read more about the hearing’s discussion than please visit the Senate Committee's website. House Small Business Committee hearing summary this week: • Carl Reed on behalf of the Association for Manufacturing Technology Ranking Member Graves said that improving the supplier support program was an important first step, but said small suppliers would be hurt by proposed cap and trade legislation, card check, and nationalized healthcare. Graves also mentioned a need to address China’s currency manipulation and piracy issues and we must be aware of the negative effects increased taxes will have on the business community. Graves warned that certain actions will negate the billions of dollars already given to Chrysler, GM and select suppliers. Chris Norch with the American Foundry Society said, “We operate under extremely tight margins, and higher energy cost could ultimately mean the difference between staying in business or having to shut the plant doors.” Carl Reed mentioned that the supplier support program “does not reach nearly far enough across and down the supply chain,” and highlighted the need to reevaluate the program. For more information on this hearing, please contact Paul Sass with the House Committee on Small Business Republican office, at (202) 225-5821. • This week the Subcommittee on Oversight and Investigations held a hearing entitled, “The Consumer Product Safety Improvement Act and Small Business.” The witnesses were: the Hon. Nancy A. Nord, Acting Chairman, United States Consumer Product Safety Commission, Bethesda, MD; Ms. Laurel Schreiber, Owner, Lucy’s Pocket, Allison Park, PA; Ms. Suzi Lang, Owner, Starbright Baby, Boalsburg, PA; Ms. Susan Baustian, Director, Once Upon a Child, Winmark Corp., Minneapolis, MN; Anthony Vittone, Esq., Vice President & General Counsel, Swimways Corp., Virginia Beach, VA; David McCubbin, Partner, McCubbin Hosiery, LLC, Oklahoma City, OK. Commissioner Nord testified that she understood the problems facing small business owners, particularly with respect to removal of existing inventory and unnecessary testing for products that cannot harm children. The Commissioner noted that the stays of enforcement were not an adequate solution to the long-term problems created by the Consumer Product Safety Improvement Act (CPSIA). Commissioner Nord stated that the Commission’s ability to ameliorate the situation was constrained by the overly prescriptive nature of the CPSIA. The private sector witnesses all noted that there businesses faced grave consequences if either statutory or regulatory changes were not made. Owners of home-based craft businesses stated they would have to shut their businesses because they could afford the testing requirements of the CPSIA. Other private sector witnesses did not mention imminent closure but noted that their costs would skyrocket if changes were not made and their businesses would be subjected to open-ended liabilities for products that have no harmful constituents or could not possibly harm children. The Chair and Ranking Member noted that this hearing was the first step in an effort to take appropriate legislative action to remedy the problems facing small business owners. Other Small Business off the Hill: Looking Forward:
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