Weekly Update from Sam |
Dear Friends,
Once again, small businesses are being left out of President Obama’s economic plans. He announced this week that he is willing to consider tax reform for corporations, but his plan leaves out the vast majority of America’s 28 million small companies. Small businesses commonly file as individuals and often face steeper tax rates than larger companies, yet it is these firms that will create the jobs necessary for a full and robust economic recovery. Tax reform must be comprehensive so that all businesses, both large and small, can see relief from the burdensome tax code.
The United States is in a very slow economic recovery that is shifting far too many Americans out of the labor force or into part-time jobs, as evidenced by today’s unemployment report. Yet it seems that the President continues to overlook what small businesses do for this economy. Instead, the Administration is raising unnecessary obstacles to small business growth through higher taxes, along with the regulatory burden and the health care law requirements. This approach is all wrong; small businesses need lower, simpler taxes. And small businesses should not be asked to foot Washington’s bill.
Sincerely,
Sam Graves
Chairman
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Latest Committee Action
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On Wednesday, Chairman Graves highlighted two new proposed rules from the Obama administration on the Committee’s digital resource, Small Biz Reg Watch: the Securities and Exchange Commission’s (SEC) regulation of how companies may publicly market private securities offerings, and the Food and Drug Administration’s (FDA) foreign supplier verification programs for importers of food for humans and animals rule. Small Biz Reg Watch was launched in January of this year to help small businesses participate in the development of federal regulations. “Not all regulations are bad, but they are piling up at a rate that really strains the resources of small businesses. If we want a common sense regulatory scheme, we need the input of those who are going to have to comply,” said Chairman Graves.
Also on Wednesday, Rep. Mike Coffman (R-CO), a Member of the Committee, introduced the Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2013 to reform the Service-Disabled Veteran-Owned Small Business (SDVOSB) procurement programs, save taxpayer money and eliminate confusion. This legislation transfers the verification process to determine which firms qualify for the program from VA to SBA, unifies the definitions of SDVOSB and Veteran-Owned Small Business, and creates an appellate process by which a SDVOSB can challenge an agency decision.
On Thursday, Chairman Graves applauded the Judiciary Committee for favorably reporting the bipartisan Regulatory Flexibility Improvements Act of 2013 (HR 2542). This legislation was introduced June 28th by Graves and Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law Chairman Spencer Bachus (R-AL). The Regulatory Flexibility Improvements Act of 2013 would ensure federal agencies give due consideration to how new regulations will impact small businesses. The bill has strong support from small business industry groups, including 123 associations that represent small firms which signed a July 30, 2013 letter endorsing H.R. 2542.
Also on Thursday, Chairman Graves called on the Environmental Protection Agency (EPA) to withdraw a rule the agency has proposed for underground storage tanks because of flaws in the agency’s cost analysis. Graves cited the Agency’s responsibility under the Regulatory Flexibility Act to consider the impact on small businesses. Small gasoline retailers face steep new expenses from the EPA proposal, estimated at $6,900 per site by small business groups. Read a news report here.
Also on Thursday, Chairman Graves sent a letter to the SBA requesting information on the its procedures for approving franchises for the Franchise Registry list. Specifically, the Committee is concerned whether there is an appropriate way for franchise owners to appeal SBA decisions, and whether the procedures and guidelines for making those decisions are consistent.
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News from Washington
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On Wednesday, the House passed by voice vote several bills increasing the Internal Revenue Service’s (IRS) accountability to Congress. Among them were measures allowing the termination of employment for employees of the IRS if they inappropriately take official actions for political purposes; establishing a moratorium on IRS conferences at taxpayer expense; improving the transparency of federal travel and conference expense reporting, and instructing the Commissioner to ensure that IRS employees understand key taxpayers’ rights.
On Thursday, the House passed the Energy Consumers Relief Act (H.R. 1582), increasing oversight of the EPA’s most costly regulations, those that reach $1 billion or more, and requiring a report on the jobs and economic impact of new rules.
On Friday, by a vote of 232-183, the House passed the Regulations from the Executive in Need of Scrutiny (REINS) Act of 2013. Under this bill, federal agencies proposing major regulations would submit a report to Congress, so the new rule could be approved or disapproved by the elected representatives of the American people. Minor rules would continue to go into effect unless specifically disapproved by Congress. “In the past four years, major rules alone have added nearly $70 billion in new regulatory costs. By comparison, ten years ago, there were six major rules in Fiscal Year 2003, with total annual costs of about $2 billion. In Fiscal Year 2012, 14 new major rules imposed an additional $14.8 to $19.5 billion in annual costs, according to the Office of Management and Budget, making 2012 the costliest year on record for federal regulation,” said Chairman Graves.
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Notable Op-Ed |
Mr. President, ObamaCare Is Creating a Part-Time Economy
By Sam Graves
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August 2, 2013 |
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What We're Reading |
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Small Biz Resources
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Tweet of the Week |
@SmallBizGOP Check out this ratio of new part-time employees to new full-time employees via @Forbes & @ConoverChris #tcot pic.twitter.com/z52NYKT62v
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