January 8, 2008
Business News FOR IMMEDIATE RELEASE CONTACT: Monica Stewart, (703)-242-5840 What Can Congress Accomplish This Year? Plenty, if it Tries SBE Council Issues Short List of Immediate "Doables" for Congress Oakton, VA -- Entrepreneurs share the public's view that Congress didn't get much done in 2007. However, the Small Business & Entrepreneurship Council (SBE Council) remains hopeful that more productive heads will prevail during 2008 to focus on advancing measures that are needed for businesses, their workforce and the economy. "It's an election year, and sadly, business owners are expecting even less from their political leaders in Washington," reports SBE Council President & CEO Karen Kerrigan. "Given such a ‘low expectations' environment, Congress can come out ahead, if they were even mildly productive," she says. With that in mind, SBE Council has issued a short list - low-hanging legislative fruit, you might say - of proposals that Congress can immediately advance, upon convening for their second session. Particularly given economic uncertainties, these measures will meet the immediate needs of small firms and their workforce: Tax equity for the self-employed: The "Equity for Our Nation's Self-Employed Act" (S.2239 and H.R. 3660), is such a reasonable and just idea that it's hard to believe Congress hasn't moved this bipartisan legislation that could help millions of small business families. The proposal fixes a tax disparity that makes health insurance more unaffordable for sole proprietors. If the Congress is serious about providing affordable health coverage, they would quickly pass this Act. R&D Tax Credit Extension - no, wait, Permanency: For the 13th time, the research and development (R&D) tax credit has expired - most recently on December 31, 2007. The tax credit is an important tool that remains critical for innovation, productivity and U.S. competitiveness. Why is the business community forced to plead every two years for its extension? Particularly at a time when the economy sits on the edge, and U.S. global competitors are making their R&D tax provisions more robust, Congress must make this measure a permanent feature. Small Business Expensing (Section 179) Permanency: The increase in the amount that small businesses can immediately write off (from $25,000 to 100,000) has made a critical difference in enabling small business investment. Various bills on Capitol Hill propose to do different things (for example, increasing the expensing amount a little, and extending the measure for another couple of years - or, doubling the expensing amount and making the provision permanent). Like the R&D tax credit, Section 179 expensing benefits the overall economy and U.S. competitiveness. Strengthen Regulatory Protection: On December 13, 2007 the House unanimously approved the "Small Business Regulatory Improvement Act" (H.R. 4458). The Senate should quickly follow suit. According to the SBA Office of Advocacy, regulation imposes a per-employee cost of $7,000 on small firms. H.R. 4458 would help to stem the tide of burdensome rules by requiring agencies to consider foreseeable indirect impact of proposed regulations, and review existing rules on a periodic basis. Significantly, the bill codifies Executive Order 13272, which ensures small businesses have a seat at the table when regulatory decisions are made. Address critical workforce needs: The expiration of the "Save our Small and Seasonal Businesses Act" (H.R. 1843/S.988) on September 30, 2007 means many small firms will not, and do not, have access to seasonal workers. Because the annual H-2B cap of 66,000 visas is hit quickly every year, the Act was advanced to exempt those who previously held H-2B status from not having to be included in this number. Now, however, the visa program reverts back to its original status, which means only 66,000 available with no exemptions. According to International Personnel Resources, in 2007 alone nearly 250,000 employees in the landscaping, golf course maintenance, tourism and hospitality, seafood processing industries (and other related seasonal service related fields) participated in the H-2B program. Already, small business owners are suffering the consequences of the expiration - this could be a crises in some industries if Congress does not act. Congress Must Focus SBE Council's Kerrigan says that if Congress wants to be productive, they must focus. They can do so by addressing the issues that matter to America's economic security, rather than those that provide for easy grandstanding. "The steroid scandal in Major League Baseball may be sexy and interesting, but there's more at stake on Main Street," said Kerrigan. "If Congress wants to restore and improve its standing with the American public, they must start producing on the issues that matter. The small steps outlined above are critical to small business and the economy. Congress can make a difference if it has the will to act on these items," concludes Kerrigan. SBE Council is a national, nonprofit small business advocacy organization dedicated to protecting small business and promoting entrepreneurship. For more information, please visit: http://www.sbecouncil.org/. The group will be issuing its full agenda to Congress upon their return. # # #
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