The Small Business Jobs Act (H.R. 5297) would create a $30 billion lending fund for small businesses, offer $12 billion in tax breaks and strengthen SBA outreach and lending programs. The NASE supports this legislation, as does the White House.
Due to a short window of opportunity and partisan wrangling, the Small Business Jobs Act has been put on the back burner until the Senate returns next month. Senate Majority Leader Harry Reid (D-Nev.) set the stage for mid-September votes on Democratic and Republican proposals to repeal increased 1099 reporting that was passed under the health care law. Senator George Voinovich (R-Ohio) has agreed to be a swing vote (giving Democrats the coveted 60) as long as the Republican-offered option is voted upon first.
At odds are Sens. Mike Johanns (R-Neb.) and Bill Nelson (D-Fla.), both of whom wish to have an amendment attached to H.R. 5297 targeting the 1099 provision.
Senator Johanns’ amendment would do away with the provision completely while borrowing money from a preventative care fund and lowering the standard required for the individual mandate to purchase health coverage. Currently, the 1099 proposal is expected to net the federal government an additional $19.2 billion and, thus, required an offset to comply with pay-as-you-go rules in Congress. Senator Nelson's amendment would exempt from the law businesses with fewer than 25 employees and purchases made by credit card. It would also raise the reporting threshold from $600 to $5,000.
The NASE is urging members to contact their legislators this month to ask for their support of the Small Business Jobs Act. For more information, please click here.