Washington Watch - September 14, 2011


Washington Watch - September 14, 2011

NASE Reacts To President Obama's Jobs Proposal

As President Barack Obama presents the American Jobs Act before a joint session of Congress, Kristie L. Arslan, President & CEO of the NASE, the leading advocate for our nation’s smallest businesses - the self-employed and micro-businesses - offered the following statement on critical actions both the President and Congress can take to get our economy moving: 

“We can all agree that we must take bold action to address persistently high unemployment and get Americans back to work. Small business is the engine of our economy and now is not the time to pay lip service to the small business community - now is the time to turn those words into action.

“America’s smallest businesses - the self-employed and micro-business - are looking for our policymakers to make small tweaks to existing law that will go a long way.

“The key is for any action taken to have a measurable and positive impact on the economy. Economists estimate that each dollar added to employees’ paychecks thanks to payroll tax relief generates 90 cents in spending. A pretty good economic stimulus, but extending that same dollar to employers as well will generate an additional $1.20 in economic activity. Broad payroll tax relief will allow the self-employed, who pay both the employee and employer portions of the payroll tax, to significantly stimulate the economy. Stabilization and growth is essential to creating the conditions for adding jobs and getting America back to work.”

Arslan appeared on Bloomberg's "Bottom Line" the following day to provide further reaction to the speech.

Recap: Obama's Jobs Speech

President Obama has outlined a plan in his speech that offers positive benefits for small-business owners. These include tax cuts for small businesses that hire new workers or raise worker’s wages, 50% lower payroll taxes in the next year, faster payment for small businesses that contract with the federal government and the reduction of red tape that prevents startups from raising capital and going public. A full transcript of the address can be found here.

Though details of the American Jobs Act - as President Obama’s plan is called - are still forthcoming, the speech unfortunately did not outline any specific plans for self-employed individuals. The self-employed should be given all the same tax cuts and regulatory reforms larger companies have.

The NASE applauds the president's efforts to spur economic growth, however, we urge him and Congress to put words into action now. No longer is it enough to simply pay lip service to our nation's smallest businesses - it is time to come up with concrete actions that can go a long way towards helping the self-employed stay afloat and prosper. One thing the president and Congress can do now: Give the country's smallest businesses payroll tax relief, and make it last. The self-employed should not have to pay both employer and employee payroll taxes. 

Obama’s proposal, which included calls for infrastructure improvements and the hiring of new teachers, has been met with surprising cordiality from House Republican leaders. Speaker John A. Boehner said the plan merits “consideration,” while House Majority Leader Eric Cantor said via tweet the president’s plan has policies that both sides can work on. The president plans to unveil more details about the proposal in the coming weeks, and it remains to be seen how Congress will react.

Read more details at the NASE's blog, SelfMade.

Small Biz Financing FAQ

The SBA Office of Advocacy sketches the ecosystem or life-cycle of small business financing. The FAQ format allows users to browse through topics and learn about specific issues. The financial needs of small businesses, which include start-ups, in sectors such as information technology, service, retail, and manufacturing differ. The answers provided represent averages or totals that can be used as figures and trends for differing types of firms. 

A copy of the Small Business Finance FAQ is located here.

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