Washington, D.C., July 16th -

Dear Friends:

Earlier this week, the Obama Administration released a report claiming that the trillion-dollar stimulus has “saved or created” between 2.5 and 3.6 million jobs since it was signed into law in February of 2009.  However, this report belies the fact that the unemployment rate has risen from 7.6 percent to nearly 10 percent in that time period, causing many to question the report’s validity. 

Closer examination of the White House claim reveals that it is not based on fact.  The number of jobs “saved or created” that the President is touting is actually an estimate based on the myth that one dollar of government spending creates up to 2.5 dollars of economic growth.  In reality, the economy has lost more than 3 million private sector jobs while the federal government has grown by more than 400,000 jobs since the stimulus became law.

Expanding the size and scope of the government is not going to help our economy rebound.  Lasting economic stability and growth can only come from the private sector.  The small business owners who have electrified our economy in the past can lead our recovery today, but only if the government supports their mission by crafting policies that keep federal spending low, reduce our national debt, encourage job creation and allow business owners and families to keep more of what they earn.    

News from the Small Business Committee:
(Please send any Member media activity to Alexandra.Haynes@mail.house.gov)

• Ranking Member Sam Graves (R-MO) was quoted in an article from The Hill about the health care law’s 1099 reporting mandate.

• Rep. Steve King (R-IA) announced that his efforts to force a 100% repeal of “Obamacare” continue to gain momentum.

• Rep. Vern Buchanan (R-FL) will hold an "America Speaking Out" town hall on July 24th in Sarasota, FL.

• Rep. Aaron Schock’s (R-IL) introduced a popular YouCut proposal to prevent tens of millions of dollars from being spent on useless stimulus signs.

• Rep. Blaine Luetkemeyer (R-MO) wrote a column about out-of-control Washington spending and the importance of participating in the YouCut project.

• Rep. Luetkemeyer also published a column on the affect that the economic crisis is having on small businesses and farmers nationwide.


House Small Business Committee Action:

• On Wednesday, the House Small Business Committee held a hearing entitled, “Bonus Depreciation: What It Means for Small Business” to explore whether extending an expired bonus depreciation provision could help small companies weather the continued economic downturn. 

During the hearing, Committee Members heard testimony from small business owners in a variety of industries, including construction, equipment distribution, printing, contracting and housing.  Although supportive of the bonus depreciation provision, witnesses expressed concern about the atmosphere of uncertainty stemming from damaging Washington policies, stating that this environment has hindered business development and slowed hiring.  

You can read more about the hearing and learn the details of what was discussed here.  For video footage of the hearing, click here. 

• On Thursday, the House Committee on Small Business’ Subcommittee on Contracting and Technology held a hearing entitled, “Improving Contracting Opportunities and Preventing Fraud for Service-Disabled Veteran-Owned Small Businesses.” 

Subcommittee Members discussed U.S. government agencies’ veteran procurement programs and heard testimony on the steps that could be taken to ensure service-disabled veteran-owned small businesses are awarded federal contracts.  Veteran-owned businesses play an integral role in both the small business community and our national economy.  House Small Business Committee Republicans are committed to ensuring that our nation’s veterans have sufficient access to the capital and resources they need to take advantage of entrepreneurship opportunities. 

Read more about the hearing here or click here to view video footage.

Updates from Washington:
(Please send any Member initiatives related to small business and job creation to Paul.Sass@mail.house.gov)

• During a Federal Reserve Meeting on Monday, Federal Reserve Chairman Ben Bernanke urged banks and regulators to find ways to ensure that small businesses get the credit they need to create jobs. Chairman Bernanke called small businesses “central” to reducing the unemployment rate.  You can read his full remarks here.

• On Thursday, the Senate voted to pass the conference report for the financial regulatory reform bill by a vote of 60 to 39.  Most Republicans did not support the legislation because the bill fails in its primary goal to prevent future financial crises.  Additionally, the legislation is likely to further restrict capital and credit for families and businesses, and gives the government unprecedented authority to regulate our financial markets. The House passed the conference report before July 4th recess, and President Obama has said he hopes to sign the legislation into law next week.  

• Representative Aaron Schock’s (R-IL) YouCut proposal to prohibit the funding of promotional signage for stimulus projects was brought to the House floor for a vote on Wednesday.  All Republicans and 11 Democrats supported the measure, although it ultimately failed to pass.

News and Resources for Small Business Owners:

The nonprofit Kauffman Foundation released a study entitled, “The Importance of Startups in Job Creation and Job Destruction.” 

NFIB released the July edition of “Small Business Economic Trends.”

The U.S. Chamber of Commerce released materials from the event “Jobs for America: Summit 2010.”

The U.S. Chamber of Commerce released a survey showing that small business owners are deeply concerned about the impact that government expansion and debt are having on job creation.


                                                            ###