| Weekly Update from Sam |
Dear Friends,
This week’s Tax Day deadline leads us to reflect on where our nation stands fiscally. Together, we face a $16.7 trillion debt and a yearly deficit that constantly adds to it, despite record revenue streaming into the federal government. The bill for chronic overspending has come due. Sensible courses of action include responsible spending reductions and a comprehensive look at the means by which we collect revenue from citizens. Currently, taxpayers must grapple with our nation’s unwieldy 74,000-page tax code. Tax compliance takes up too many resources that could be better invested in more productive endeavors. This is true not only for individuals, but also for small businesses that have historically served as our nation’s best job creators.
According to the 2013 Small Business Taxation Survey from the National Small Business Association, nearly 40 percent of owners report spending 80 hours or more each year on federal taxes — that’s two full work weeks. Small businesses pay a tax compliance cost that is nearly three times larger than big businesses. In a recent Chamber of Commerce survey, 8 of 10 small business owners favored comprehensive tax reform. My colleague, Ways and Means Committee Chairman Dave Camp (R-MO), has led the way with a tax reform discussion draft. It’s time for tax reform. A simpler tax code would benefit small businesses, America’s leading job creators, and make a significant impact on our economic recovery.
Sincerely,
Sam Graves
Chairman
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Latest Committee Action
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On Tuesday, Chairman Graves wrote to 35 federal agencies challenging them to comply with the Small Business Act, which was recently amended to require that agency Offices of Small and Disadvantaged Business Utilization (OSDBU) remain a dedicated resource to help small businesses compete for federal contracts. Small business procurement’s decline of nearly $8 billion from fiscal year 2011 to fiscal year 2012 highlights the need for reforms intended to empower well-trained and mission-oriented small business procurement advocates.
On Wednesday, the Committee held a hearing on the strain that complying with the complicated health care law places on small businesses. Committee Members took a closer look at the effects of this far-reaching law on the businesses that have the fewest resources to handle the compliance burden. The Committee heard testimony on the costs and paperwork requirements of the law, the incentives it creates that stifle hiring, and how the new red tape affects the planning and outlook for small businesses.
On Thursday, the Small Business Subcommittee on Economic Growth, Tax and Capital Access held a hearing on the role that innovation plays in growing small businesses and creating jobs, and how Washington can help spur more entrepreneurship. According to the Kauffman Foundation, fast-growing young innovative businesses account for less than one percent of all companies, yet generate roughly 10 percent of new jobs in any given year. This hearing was the first in a series on how to bolster America’s competitiveness and propel economic growth.
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News from Washington
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| On Thursday, the House passed the Cybersecurity Information Sharing and Protection Act (H.R. 624), with a bipartisan vote of 288-127. The bill allows the real-time sharing of cyberthreat and cyberattack information between the intelligence agencies and cybersecurity entities to increase private sector security. |
| Notable Op-Ed |
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| April 19, 2013 |
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| What We're Reading |
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Small Biz Resources
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| Tweet of the Week |
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@SmallBizGOP Mr. Gouldin: The most patriotic thing we can do is hire someone or find a #job.
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