| Weekly Update from Sam |
| Dear Friends,
I remain optimistic about the great potential of the American economy, but concerned about the mounting evidence that Washington policies are preventing a full-strength recovery. Last month’s jobs report brought welcome news, but also shows we’re not out of the woods yet.
One major concern is labor force participation, which is among the lowest levels since the Carter Administration. The fact is that if the labor force was back to the level it was before the recession, the unemployment rate would actually be 11.1%, not 6.1%. In 49 of the last 50 months, more Americans have stopped looking for work than those who found jobs. A related concern is the high long-term unemployment rate – those 3 million Americans who have been without jobs for 27 weeks or more. Last quarter’s shrinking economy, which lost ground at -2.9 percent, is yet another signal that many Americans are still struggling.
This mixed outlook is apparent in this week’s latest survey from the NFIB, which showed that small business expectations slipped. Small businesses need more economic certainty and less burdensome government. The House has passed 40 bills in this Congress that address many aspects of economic growth, from creating jobs to lowering energy costs; however, the Senate has not acted on any of them. The American economy has vast growth potential, but government still needs to get out of the way.
Sincerely,
Sam Graves
Chairman
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Latest Committee Action
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| On Thursday, the Small Business Subcommittee on Economic Growth, Tax and Capital Access, under the chairmanship of Rep. Tom Rice (R-SC) – who worked as a tax attorney before he served in Congress – conducted a hearing regarding cash accounting. According to a survey by the NFIB, 41 percent of small businesses prefer to use cash accounting. However, the Internal Revenue Code requires that many small businesses in the United States use the more complicated accrual method of accounting for tracking cash receipts and disbursements. The Subcommittee examined how this rule affects small businesses, and the benefits of allowing small firms more flexibility in using the method that best suits their operations.
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News from Washington
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| On Wednesday, by a bipartisan vote of 415-6, the House passed the Workforce Innovation and Opportunity Act (H.R. 803), which makes reforms to strengthen and improve job training programs to address the shortage of skilled workers and help get more Americans back into the work force. Additionally, the bill cuts 15 duplicative programs and empowers states with more flexibility to address specific needs.
On Thursday, the House passed the Energy and Water Development and Related Agencies Appropriations Act for 2015 (H.R. 4923). The legislation provides annual funding for national defense nuclear weapons activities, the Army Corps of Engineers, and various programs under the Department of Energy. The bill cuts $50 million from the fiscal year 2014 budget levels.
On Friday, the House passed H.R. 4718, which amends the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation. This allows businesses to continue to deduct 50 percent of the cost of certain capital investments, such as business equipment, in the first year. These investments create jobs and growth, not only through the purchase itself, but through resulting increased productivity.
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