Washington Watch - February 29, 2012


Washington Watch - February 29, 2012

House GOP Unveils Small Business Plan

House Republicans unveiled a bipartisan package of proposals to help small businesses. There are 6 measures designed to loosen up securities rules in order to funnel more funding to companies and create opportunities for job growth. 

The NASE believes that Congress is unfairly referring to the legislation as package of small business proposals when, in fact, it caters to only a fraction of these small businesses. One proposal lifts a ban for small privately-held companies using advertisements to find investors. Another is aimed at reducing the cost for a company to go public. Yet another would increase the number of shareholders required for an SEC registration. The types of businesses targeted with these proposals are not likely the mom & pop shops that make up most of the small business community.

Federal Self-Employment Program Encourages More State Adoption

Legislation extending the payroll tax deduction in February included changes to the Self-Employment Assistance (SEA) voluntary program that allows states to pay a self-employment allowance to unemployed individuals who are in the process of establishing businesses and realizing the dream of self-employment.

The NASE has previously expressed desire to see these types of programs extended and embraced by all 50 states; currently only Delaware, Maine, New Jersey, New York, Oregon, Pennsylvania, and Washington have adopted SEA programs.

The changes in SEA include making available federal financed unemployment benefits to the program, additionally, the bill directs the Department of Labor and Small Business Administration to provide technical assistance to states that are interested in establishing the program.  Perhaps the biggest incentive for states is the inclusion of $35 million dollars to help states administer the SEA program.  Previously the state absorbed the costs of developing and maintaining the program. 

We hope that states will embrace the SEA program and use the new funding streams to quickly implement a program that will translate into “real” opportunities for budding entrepreneurs to launch their businesses and become engines of economic growth.

You can learn more about the program by visiting the Department of Labor website here

NASE Statement On President Obama's Tax Reform Plan

Upon the release of the President's plan to reform taxes or businesses, the NASE had the following commentary to offer:

“Today’s joint proposal by the White House and the Department of Treasury announcing recommendations for business tax reform must be called what it truly is, corporate tax reform exclusive to major corporations and large employers," said NASE President and CEO Kristie L. Arslan. "Over and over again, we have continued to see the lack of understanding of the impact of current tax policy on the self-employed and micro-business community. While NASE supports broad tax reform, the President’s plan does not have the same bold vision for the self-employed which pay taxes at individual income tax rates. Sadly, 78% of U.S. businesses will continue to face a negative tax environment and constraints on their ability to grow and thrive in today’s tough economy unless the Administration and Congress start focusing on Main Street America.”

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