House Committee on Small Business, Republicans

Straight Talk: Fairness for All Small Businesses

Weekly Update from Sam

Dear Friends,

We’re hearing Democratic colleagues use words like “fabulous” and “wonderful” to describe the health care law. Small business owners know better. The health care law makes it more difficult for 72 percent of small businesses to hire, according to the U.S. Chamber of Commerce quarterly survey released this week.

The administration’s attempt to implement the law is in obvious disarray. When the President announced an unauthorized delay in the employer mandate, many of us expressed concern, both because his decision goes beyond the scope of the law, and because it leaves out millions of sole proprietors, along with individuals. This week, the House of Representatives passed a one-year measure to fairly apply the delay to all Americans, including sole proprietor small businesses. Since it is clear that the Obama administration is not prepared to adequately implement the law, a fair delay that applies to ALL small businesses is the only sensible alternative. If the President is going to delay the mandate for employers, then all Americans deserve the same relief.

From the beginning, this law has been too far-reaching, too hasty and too partisan. It should be completely repealed and replaced with common sense policies to hold down costs, put patients first and help the small businesses that are so vital to the economy.

Sincerely,

(signed)
Sam Graves
Chairman

Latest Committee Action

On Wednesday, the Committee examined the methods the Internal Revenue Service (IRS) uses to audit small businesses. Acting IRS Commissioner Daniel Werfel testified. The purpose of the hearing was to identify how the agency selects and classifies the tax returns of small businesses, in light of revelations that the IRS used inappropriate criteria to unfairly target certain groups. "We have to be vigilant to ensure that tax enforcement is objective, fair, and transparent; not based on personal bias or abusive in nature. I appreciate Mr. Werfel’s willingness to establish a new review process to monitor small business auditing practices, but the IRS has some work to do to restore the trust of the American people, and that starts with an open and transparent dialogue with Congress and the American people," said Chairman Graves.

On Thursday, the Small Business Subcommittee on Agriculture, Energy and Trade held a hearing to examine the devastating effects on small business of the regulatory limitations on emissions outlined in the President's Climate Action Plan. The Subcommittee also reviewed the EPA's compliance obligations under the Regulatory Flexibility Act (RFA). While the EPA denied an invitation to testify to defend its proposal, small businesses’ and an economist’s testimony warned of major spikes in energy costs if this plan is enacted into law. Further, the technology does not exist to meet the standards previously proposed by EPA, which would shut down many small energy producers.

Today, Chairman Graves and Subcommittee on Contracting and Workforce Chairman Richard Hanna (R-NY) introduced bills that will bring more efficiency and competition to the construction contracting process. The Design Build Efficiency and Jobs Act of 2013, sponsored by Graves, is bipartisan legislation to decrease the cost for both the government and small businesses when the government buys design build services. The Commonsense Construction Contracting Act of 2013 (CCCA), sponsored by Hanna, is bipartisan legislation to change the way the federal government chooses construction services, ensuring a more thorough bidding process, which benefits the taxpayer and government. Construction and Architectural & Engineering contracts account for about eight percent of federal prime contract dollars, but the segment accounts for over 17 percent of the awards to small businesses.

News from Washington

On Wednesday, the House passed two bills to delay the President’s health care law, since it is not ready for implementation. By a bipartisan vote of 264-161, the House passed H.R. 2667, the Authority for Mandate Delay Act, to postpone the requirements for employers until 2015. By a bipartisan vote of 251-174, the House also passed H.R. 2668, the Fairness for American Families Act, to postpone the requirement for all Americans, including sole proprietor small business owners.

The Internal Revenue Service estimates that there are 23 million sole proprietors (owners of unincorporated small businesses) that bolster the economy with a net combined income of $323 billion, and they are subject to the individual mandate of the health care law. According to a recent survey, nearly 25 percent of sole proprietors do not have health insurance.

Also this week, SBA Administrator Karen Mills announced she will leave the agency by the end of August. She signaled plans to leave five months ago, but President Obama has not announced a nominee to replace her. “The SBA performs an important role for many small businesses and the administration should make small businesses a higher priority by finding a new administrator as quickly as possible,” said Chairman Graves.

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