• National Small Business Week A Success
• Senate Finance Committee Draft Tax Cut Bill

National Small Business Week A Success
In recognition of the important contributions that small businesses make to American society, National Small Business Weekwas celebrated last week in conjunction with the 34th Annual Joint Industry/SBA Procurement Conference. An array of events to celebrate the significance and success of small business were hosted by such groups as Microsoft, Boeing, the Defense Department, and American Express. The theme of this year’s National Small Business Week was, “A History of Success, A Millennium of Opportunity,” which represents America’s spirit of confidence in the continued success of all small business.

The NASE participated in a White House ceremony honoring the small business community and its many advocates. President Bush mentioned the need to eliminate the death tax and support initiatives that will contribute to the success of the self-employed and small businesses.

The National Association for the Self Employed, along with other small business advocacy organizations, also sponsored the SBA’s Office of Advocacy’s Congressional Luncheon. The purpose of the luncheon was to honor the chosen Small Business Advocates, Special Award Winners, and the Small Business Persons of the Year. Chairman Christopher Bond of the Senate Small Business Committee, Ranking Member Sen. John Kerry, and also Chairman Donald Manzullo of the House Small Business Committee spoke at the luncheon. Sen. Christopher Bond remarked that, "Small businesses have proven, year-in and year-out, that they are the engine driving our economy. As we celebrate National Small Business Week, we need to acknowledge their success and encourage our federal government to help insure future success in this cornerstone of our economy." 

Each of the speakers acknowledged the accomplishments of the small business community and highlighted how small business is the driving force in America’s economy.

To find out more about National Small Business Week and the Special Award Winners, visit http://smallbusinesssuccess.sba.gov/.

Senate Finance Committee Draft Tax Cut Bill
The Senate Finance Committee, chaired by Sen. Charles Grassley (R-IA), released a draft of an 11-year, $1.35 trillion tax cut proposal supported by both Sen. Grassley and Ranking Democrat Max Baucus (D-MT) which includes income tax rate cuts, estate tax relief, marriage tax relief, and a retirement savings and pension proposal.

The current income tax rates or 28, 31, 36 and 39.6 percent rates would be reduced to 27, 30, 35 and 38.6 percent beginning in 2002. In 2005, rates would fall to 26, 29, 34 and 37.6 percent. By 2007, rates would be 25, 28, 33 and 36 percent. Also, a new tax rate of 10 percent rate on first $6,000 of individual income, $12,000 for couples would be introduced this year.
The estate tax would be phased out with complete repeal in 2011. Initially, the exemption would increase to $1 million in 2002 and the top rate would be cut to 50%. 

The Grassley-Baucus bill would increase maximum annual contributions to Individual Retirement Accounts from current $2,000 to $2,500 in 2002, $3,000 in 2006, $3,500 in 2008, $4,000 in 2010 and $5,000 in 2011. Individuals over age 50 could make additional "catch-up" contributions. Also, the bill would increase annual limits on defined-benefit pensions and contributions to those plans.

For more information, please contact Kristie L. Darien, NASE Director of Government Affairs, at (202) 466-2100.