| Weekly Update from Sam |
Dear Friends,
Congress has a crucial oversight role in the operations of the executive branch’s large federal bureaucracies. If they overstep their bounds, Congress has the constitutional obligation to rein them in. On May 31, I sent a letter to the new head of the Internal Revenue Service (IRS) to inquire if the tax collecting agency targeted any U.S. small businesses for political reasons. The concern stems from the recent admission that the IRS targeted conservative nonprofit groups through the certifying process, as well as past administration proposals to ask small contractors to disclose political contributions on procurement applications. This track record and serious overreach by the IRS demands clear accountability and real reforms to prevent any recurrence. We want to know more about the method the IRS uses to focus on any one small business for audits and what benefit taxpayers gain. Read news reports here and here.
Sincerely,
Sam Graves
Chairman
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Latest Committee Action
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On Tuesday, Chairman Graves introduced the Make Every Small Business Count Act of 2013 (HR 2232). As the Washington Business Journal reports, the bill encourages subcontracting partnerships with small businesses. The bill corrects the current imbalance in how the government credits small business participation on lower-tier subcontracts – those contracts from one subcontractor to another. By not allowing the prime contractor to count all the subcontracts toward the goal, the current practice doesn’t create the right incentives to provide opportunities for smaller firms. The federal government has a goal of awarding 23 percent of prime contract dollars and 35.9 percent of subcontracted dollars to small companies, which creates jobs, increases competition, promotes innovation, and ensures the health of our industrial base. The bill would ensure that there are opportunities for small businesses at every level of federal contracting. It allows government to set goals with prime contractors on all levels of subcontracting, and lets large businesses count any award to a small business. This improvement encourages small business opportunities to compete for subcontracts, and is supported by large and small businesses alike. Read here for another report about the bill.
On Wednesday, the Committee examined the work of the Small Business Administration’s (SBA) Inspector General Peggy Gustafson. This Committee has direct oversight responsibility for the SBA. The SBA – like all federal bureaucracies – has ample room in its budget to reduce duplication and find useful cost savings. The hearing focused on the SBA’s management of its $100 billion loan portfolio and long-awaited upgrades to its associated technology systems, the SBA’s unauthorized counseling pilot programs, the SBA’s oversight of contracting programs and its record of reducing fraud. The Inspector General’s work aids the Committee and Congress in creating a responsible fiscal path for the SBA. Given our nation’s current debt level, it is imperative that the SBA operate in the most efficient manner possible.
On Thursday, the Small Business Subcommittee on Investigations, Oversight and Regulations, under Subcommittee Chairman David Schweikert (R-AZ), held a hearing to review several innovative financing options, determine how those models are meeting entrepreneurs’ needs, and discuss what Washington can do to foster more access to credit. Financing tools like crowdfunding and peer-to-peer lending are filling a gap left by traditional investors and lenders. Congress passed the ‘JOBS’ Act to encourage innovation in finance, but implementing the law’s provisions remains in limbo at the SEC, though the bill was signed into law more than one year ago.
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News from Washington
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The U.S. House of Representatives is continuing its ongoing investigation of the IRS, including interviewing IRS employees and holding hearings, in the wake of admissions that the agency targeted conservative nonprofit groups. Information is being sought by the House Committee on Ways and Means, the House Committee on Oversight and Government Reform, the House Appropriations Committee and the House Committee on Small Business.
This week, the House approved two bipartisan appropriations bills funding homeland security, America’s veterans and disaster recovery. The Military Construction, Veterans Affairs, and Related Agencies Appropriations Act (H.R. 2216) passed the House by a vote of 421-4 on Tuesday, and the Department of Homeland Security Appropriations Act (H.R. 2217) passed by a 245-182 vote on Thursday. |
| Stay Plugged In |
Be sure to check out the House Small Business Committee on Facebook, YouTube and Twitter for all the latest in Small Biz news and resources and to join the conversation. We value your input, so tell us about your small business on our interactive website Small Biz Open Mic.
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| June 7, 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 Mr. Cremades of @RockThePost1: Every day that goes by without #JOBSAct implementation is another day #SmallBiz are left fighting for capital |
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