Washington Watch - September 7, 2011


Washington Watch - September 7, 2011

President To Unveil Jobs, Economy Boosting Proposal

The NASE will be listening carefully to President Obama's address on Thursday night regarding his ideas on how to lower unemployment and boost the economy.

Stay tuned to www.NASE.org for the latest information, including media appearances by NASE President Kristie Arslan.

All Eyes On Super Budget Committee As Congress Returns

With Congress back in session this week, all eyes are looking to the dozen lawmakers who have been appointed to the joint deficit reduction panel by House and Senate leaders.

The panel, which plans to hold an organizational meeting on Sept. 8 and a hearing on Sept. 13, is under immense pressure to produce a plan that cuts at least $1.2 trillion from the budget deficit over 10 years. Otherwise, painful automatic spending cuts outlined in the new debt limit law will be implemented.

Though the four leaders – Speaker John A. Boehner, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell – will play a role in influencing the agreement, some analysts say the super-committee – as the dozen lawmakers are colloquially called – will have to maneuver with the opposing parties to find common ground. It remains to be seen how the super-committee will decide on the fate of controversial policies, such as re-orientating entitlement programs Democrats support and increasing taxes that Republicans disapprove.

Meanwhile, the four leaders have also demanded that the super-committee shall not overrun the fall agenda as it did this summer. House Republicans expect to work through a series of bills to ease federal regulations on businesses. Democrats want to move along with short-term extensions of the Federal Aviation Administration and surface transportation programs.

NASE Continues To Press Congress On Need To Repeal Tax Gap Measures

As the 2013 enactment date for the 3% withholding tax on independent contractors nears, the NASE continues to press lawmakers to repeal it in the interest of the self-employed. The tax gap measure’s enactment, which was included as part of the Tax Increase Prevention and Reconciliation Act of 2005 (H.R. 4297), was delayed in 2009 and again this year, when the Internal Revenue Service issued new regulations delaying the requirement until 2013.

The House Small Business Subcommittee on Contracting and Workforce held a hearing in late May to discuss Rep. Wally Herger’s (R-Calif.) proposal to repeal the tax gap measure. During the hearing, Herger said many businesses that contract with the government operate on very narrow profit margins – often less than 3%. As a result, the 3% withholding tax would create serious cash flow problems for small businesses.

Herger’s proposal has attracted bi-partisan support, with 226 cosponsors. The NASE urges Congress not to delay in reporting and setting into motion a vote regarding the repeal.

Washington Watch Online

Visit NASE Advocacy to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business.

Courtesy of NASE.org