Affordable Health Care: One of the
biggest concerns facing small businesses
and their employees is the lack of access
to affordable healthcare. The U.S. Chamber
of Commerce says that more than 45 million
Americans are uninsured with nearly 60 percent
of those employed by small businesses.
Congress can help lower the cost of health
insurance coverage by passing legislation
to allow small businesses to band together
in associations and negotiate lower rates
with insurance companies. By purchasing
health insurance at a lower cost, association
health plans make it more affordable for
small businesses to offer insurance coverage
to their employees.
Eliminating the Death Tax: The “inheritance
tax” or “death tax,” as
it is often accurately labeled, is one of
the primary reasons why family-owned small
businesses and farms do not survive from
one generation to the next. The tax relief
passed by Congress in 2001 gradually phases
out the death tax by 2010. However,
unless Congress acts to extend this important
tax relief, the death tax will return in
full force in 2011.
A small business survey indicated that more
than 80 percent of small employers spend
an average of $25,000 annually in attorney/consultant
fees and life insurance premiums to avoid
the crushing blow of the death tax that forces
many small companies out of business and
keeps others from investing that money in
growth opportunities.
Tax Reform: The U.S. tax code has become an increasingly complex maze of laws and regulations that can be particularly burdensome for small businesses. For newly established businesses, navigating the complex rules and reporting requirements is particularly difficult.
In 2001, the Small Business Administration's (SBA) Office of Advocacy released a report on the regulatory and compliance costs faced by small firms. The report showed that small businesses with fewer than 20 employees spend over $1200 per employee to comply with tax paperwork, recordkeeping, and reporting requirements. This is more than double the compliance cost faced by larger firms. Simplifying the tax code would relieve a massive regulatory burden on small businesses.
Government Contracting: The SBA is charged with helping our nation's small businesses work through the complex procurement process. The SBA must focus its procurement outreach efforts to ensure that small businesses understand this process. The practice of consolidating contracts, or "contract bundling," limits the ability of small businesses to compete and ultimately hurts the American taxpayer by reducing competition for federal dollars.
Most government agencies are not achieving
their goals for contracting with small businesses
particularly as prime contractors. When small
businesses obtain prime federal contracts
they are exposed to federal agency procurement
decision-makers, the gatekeepers to federal
contracts. The House has passed legislation
to reform this process to ensure that small
businesses have a greater opportunity to
compete for government contracts.
Liability Reform: Unfounded and unfair
lawsuits are increasingly threatening the
ability of retailers and sellers to run their
businesses and contribute to their communities.
According to a 2007 study by the U.S. Chamber
Institute for Legal Reform, small businesses
bear 69 percent of business tort liability
costs, while taking in only 19 percent of
business revenues. With tort costs approaching
$100 billion annually – with nearly
$20 billion of those costs paid out of pocket – small
firms are threatened with closing their doors.1
The Small Business Liability Reform Act,
introduced by Ranking Member Steve Chabot,
is designed to reduce the harm caused by
frivolous lawsuits. In addition to
protecting small business owners from unnecessary
legal expenses and helping consumers who
face higher prices as a result of soaring
litigation costs, the legislation would strengthen
the justice system by ensuring only those
cases with legal merit are able to move forward.
1 The U.S. Chamber Institute for Legal Reform
2007 study is based on 2005 data. |