Today the Commerce Department announced that the U.S. economy grew sluggishly worse than expected for the first half of 2011. Gross domestic product (GDP) rose just 1.3 percent in April through June; while economists expected GDP to rise 1.8 percent in the second quarter.

The economic uncertainty created by the debt debate in Washington, a burdensome regulatory environment and an uncertain tax policy for 2012 has caused small businesses to put the brakes on any plans for expansion or hiring. It has not helped consumer confidence either, which fell to its lowest point in more than two years according to the Reuters/University of Michigan report released today.

Washington must restore confidence to small businesses and consumers. We can do this by cutting wasteful spending, eliminating costly regulations, lowering the tax burden, passing the pending free trade agreements, and working towards energy independence.

We have the opportunity to make progress in this direction as we move forward in the debt ceiling debate. Speaker Boehner has presented a plan that will cut spending more than we increase the debt limit— and without any new taxes on anyone. 

Taking these actions along with other steps would make America more competitive, spark economic growth and help get Americans back on the payroll. 

Sam Graves
Chairman

On Wednesday, Chairman Sam Graves (R-MO) held a full committee hearing to examine the National Export Strategy and the effect that bureaucratic obstacles are having on small exporters. With over 20 federal agencies involved in the exporting process, many small firms have voiced concern about the difficulty of maneuvering through the bureaucracy and regulations.

On Thursday, Healthcare and Technology Subcommittee Chairwoman Renee Ellmers (R-NC) held a hearing to examine if small businesses will be able to maintain their existing health coverage under the Patient Protection and Affordable Care Act (PPACA). President Obama frequently said in reference to his health care reform law that if you like your health insurance you can keep it; however, recent reports and feedback from small business owners suggest that this may not be the case. At the hearing, small business owners testified that this uncertainty has forced them to withhold any plans to expand or hire more workers because they will need the capital to comply with the plethora of new healthcare regulations.

Also on Thursday, Investigations, Oversight and Regulations Subcommittee Chairman Mike Coffman (R-CO) held a hearing to examine the impact of the new Consumer Financial Protection Bureau (CFPB) regulations on small businesses. The CFPB was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created a regulatory structure for financial products. Small business owners and small lenders provided insightful testimony on how to bridge the divide between small businesses gaining much-needed capital and banks lending to qualified applicants and how the CFPB will affect their business.

News From Washington

On Tuesday, the House passed the Small Business Program Extension and Reform Act (H.R. 2608) by voice-vote. The bipartisan bill restores fiscal discipline and efficiency to the federal government by eliminating wasteful programs and saving taxpayer money.

Also on Tuesday, the House passed the North American-Made Energy Security Act (H.R. 1938) 279-147. This bill would help facilitate better coordination of the Keystone XL pipeline federal permit approval process and give much needed certainty by providing a clear deadline for decisions. Completion of the pipeline expansion will double U.S. imports of Canadian oil, carrying nearly 1.3 million barrels a day to refineries throughout the Midwest and Texas.  In addition to lowering gas prices, the pipeline is also estimated to generate over 100,000 American jobs.

• WSJ: Trade Pacts Urged for Export Growth
• National Journal: Small-Business Survey Suggests Suspicion of Health Care Law
• Wash Post: More Americans Unhappy with Obama on Economy, Jobs
• WSJ: What's Wrong With America's Job Engine?
• Morning Call: Feds to Study Small Business Insurance Rates

• Tipton's Statement in Support of Plan to Move Our Country Forward
• Ellmers Joins House Leadership to Promote Budget Control Act
• Barletta: Response to the debt crisis is the defining issue of this Congress
• Hanna on Debt Negotiations

• NFIB New Study: PPACA One Year Later
• NCA 2011 Washington Forum Sept. 21-23