• NASE Offers Legislative Advice, Guidance to Women Business Owners
• President Proposes 2006 Federal Budget
• President Bush Addresses NASE Issues in State of the Union Address

NASE Offers Legislative Advice, Guidance to Women Business Owners

The NASE joined women business owners from across the country assembled in Washington to discuss important policy issues with members of Congress at a public policy conference this week. The 2006 fiscal year budget, health care, and social security are top concerns for women business owners, the NASE executive director of the legislative office Kristie Darien told the group, gathered as part of the National Association of Women Business Owners Public Policy Days. “The budget is getting tighter and tighter because of rising military costs. Women business owners need to make an effective case as to why our issues still need attention and funding,” Darien said at a panel discussion called the Insider’s Look at the 109th Congress. The seminar prepared women business owners with a background and tools to use during meetings with their members of Congress to lobby issues important to them. There was agreement that issues at the top of President Bush’s agenda are also critical to women business owners. Darien highlighted the need for affordable and consumer-driven health care plans and a simplified and fair tax system for micro-businesses. All panelists discussed the importance of understanding legislative issues and the impact of constituent contact and action to get bills moving through Congress. Such tools and up-to-date legislative information are available to NASE members at the online Legislative Action Center. NASE members can access bill summaries and Washington Watch, a weekly e-newsletter on current issues before Congress. Members also have the ability to write directly to their legislators through the Web site.

President Proposes 2006 Federal Budget

President Bush submitted his annual budget proposal to Congress this week on how he wants to fund the federal government in fiscal year 2006. Congress will debate his proposals, as well as their own, until the fall. The 2006 budget should be finalized and ready for implementation October 1, 2005. Bush proposed a tight budget program funding cuts and a spending freeze. Below, some of proposals that affect the self-employed and micro-businesses: Make 2001 and 2003 tax cuts permanent Bush wants to permanently extend the tax cuts passed into law in 2001 and 2003, which are set to expire by 2010. These provisions include reduced tax rates, tax breaks for married couples, eliminating the estate tax, an increased child tax credit and a 15 percent tax rate on dividends and capital gains. New health care tax breaks Bush proposed a tax credit for small business owners of $500 per employee for contributions made to employee Health Savings Accounts. Reduced funding of U.S. Small Business Administration Bush requested a 2.8 percent decline in funding for the Small Business Administration for FY 2006. Much of the reduction comes from the elimination of subsidies for the 7(a) loan program that took effect late last year as part of the SBA reauthorization. As this debate shapes itself in Congress, the NASE will continue to follow these provisions and any that could affect the self-employed and micro-business owners. Let your Members of Congress know how you feel about the President’s budget through the online Legislative Action Center at http://advocacy.NASE.org.

President Bush Addresses NASE Issues in State of the Union Address

The NASE recognizes the importance of many self-employed and micro-business issues President Bush mentioned in his State of the Union address last week. NASE President Robert Hughes vows that the association will follow the President’s progress and pursue issues such as health care and Social Security reform to benefit the self-employed and micro-business owners. President Bush acknowledged the need for individual involvement in health care issues as well as the need for association health plans, tax credits for insurance, and expanded health savings accounts. “We must make health care more affordable and give families greater access to good coverage and more control over their health decisions,” Bush said regarding the many initiatives he proposed. “The NASE is already working on several components of the President’s health care agenda,” said Hughes. “We strongly support association health plans and the push toward a health care system that allows individuals more choice and participation.” The NASE is working toward passage of association health plans for the self-employed and micro-business owners, which would allow them to purchase health insurance in large pools. Through a trade association, these bands of businesses would be able to enroll for plans similar to those large employers provide. The NASE also supports a refundable tax credit for rising health care costs. President Bush discussed a bipartisan panel he appointed to review the federal tax code in his address, which he describes as archaic and incoherent. The NASE supports simplifications to the tax code, particularly tax forms that are unnecessarily complex and burdensome for self-employed and micro-business owners. The NASE plans to monitor any proposals to change to tax code and its effects on the self-employed. Much of the President’s State of the Union Address focused on Social Security reform. Congress will be discussing the extent of reform that needs to occur in the social security system this year at length. President Bush presented the idea of allowing workers to put some money that had been allotted for social security into personal accounts for investment into one’s own future. The present system depends upon current workers paying for current retirees’ benefits. The NASE favors leaving the basic “social safety net” in place and believes the current structure of Social Security must be kept in place for current beneficiaries. But the highly discriminatory Social Security tax system, which is one of the major barriers to self-employment in the United States, must be addressed. The NASE will vigorously oppose any change to Social Security that worsens the current tax inequities for the self-employed. The NASE plans to work with the Administration and Congress to pass important legislation benefiting the self-employed and micro-businesses. NASE members can access current information on policy and legislation regarding these issues at the online Legislative Action Center [http://advocacy.nase.org]. The State of the Union address can be found on the White House Web site.