I want to thank you for inviting me here. I always enjoy
the opportunity to speak with NSBU and having the counsel
of Todd and your entire membership has been invaluable
to me in my capacity as the Ranking Democratic Member
and to my members --- you are truly the voice of small
business.
Earlier this year when President Bush was sworn in as
our 43rd President, one of his first goals was to bring
a new approach to Washington. He said he wanted to unite
people to work for a common good --- and while I applaud
him for that, before he can bring both Democrats and Republicans
together, I still think he needs to do some uniting in
his own party first.
But bringing people together to work for a shared belief
is nothing new to members of the Small Business Committee.
Long ago, our members realized that helping small business
was neither a democratic or republican issue --- neither
party has a corner on that market --- we must work together.
This cooperative agreement has allowed our committee to
become one of the most productive in recent Congresses.
During the 106th Congress, the committee passed twenty-seven
bills, twenty of which were signed into law by the president.
We were able to accomplish this because liberal and conservative
--- rural and urban legislators checked our ideologies
at the door and kept one goal in mind --- "How can
we help small businesses?"
Many of you may think that with this kind of cooperation,
and an administration that is largely viewed as "pro
business", nothing could be better. But I would caution
you all today not to assume that just because a policy
makes sense for Microsoft, Motorola or GM, it is not necessarily
in your best interest or the best interest of this nation's
small businesses.
Often times, while the issues may sound similar, the
priorities are very different. Nothing illustrates this
better than the issue of health care, where less than
30 percent of small business owners have health care comparable
to their corporate counterparts. We need to look at ways
of reducing costs and increasing accessability through
whatever means possible. Whether it is tax credits or
allowing small businesses to band together to purchase
health care through Associated Health Plans.
Unfortunately, many in corporate America have thrown
their lot in with HMO's and insurance companies. Rather
than fighting to get small businesses access to health
insurance, they are working to protect HMO's from being
sued. First and foremost, in the health care debate, small
businesses must have access to affordable health care,
PERIOD.
The case was the same recently when the House passed
major pension reform legislation. The U.S. Chamber extolled
the wonders of the legislation --- and it was a good bill,
but what it lacked was any provision to help millions
of small businesses afford to start their own pension
plans. That was completely lost in the shuffle, and that
simply can not happen again.
Tax reform has and will continue to be a major issue
for Congress. This week the president will sign one of
the most sweeping tax reform measures in this nation's
history. A tax bill, I might add, that does not have one
specific small business tax break.
We are all aware of the arguments that reduction in marginal
rates will help small business, but when you factor in
cuts to critical business programs, add in the 43 percent
cut to the Small Business Administration, who's funding
has been replaced with fees that will amount to thousands
of dollars in additional costs to small businesses ---
many entrepreneurs will actually see a tax increase, not
a tax break.
It was in response to this inequity that I joined with
my colleague Don Manzullo and other like-minded members
to introduce a comprehensive small business tax package,
H.R. 1037, "The Small Employer Tax Relief Act of
2001." This legislation provides important tax relief,
simplification and protections.
I still believe there is an opportunity for small business
tax relief. As I'm sure you are aware, there has been
growing discussion over an increase in the minimum wage.
As a way of helping small businesses afford this increase,
we are proposing an awry of targeted tax breaks like those
contained in the Small Employer Tax Relief Act of 2001.
I have begun reaching out to members of my party to educate
them as to why these two are a good fit. We must however
guard against this proposal being hijacked by corporate
America and become a vehicle for more sweeping tax needs
that have little or no benefit to small business --- like
a capital gains tax cut. You must be careful that if the
K street crowd is allowed to load up this bill once again
with their tax break, something will have to give.
More than likely the first thing to go once again will
be your priorities. Items like greater deductions for
equipment, computer and software will be gone. Meals deductions
gone. Acceleration of 100 percent deduction for self-employed
and payroll tax reform, all at risk of being pushed to
the way side. That is why your voices are more important
now than ever.
Don't get me wrong, there is much that the entire business
community shares as common goals. It will take the work
of all of us to expand SBRFA --- which has been critical
in making EPA and OSHA rules more responsive to the needs
of small businesses. The next step is to include the IRS
which has long plagued everyone in the business community.
But as I stated before, just because it makes sense for
corporate America, doesn't mean it makes sense for small
businesses.
As you can see, there is still much that needs to be
done to help this country's small businesses. I would
like to close with what I believe has become a sort of
a mantra for me in regards to small business, and that
is "Small business is big business in America."
We see it in the dominate role you play in economic output
and in leading job growth. The economic boom of the last
eight years has been largely built on the foundation of
small business, and if it is to continue, it must remain
anchored firmly in small business.
Thank you.
