• Democrat Agenda Will Still Keep Micro-Businesses In Mind
• What To Expect In The U.S. House Of Representatives
• What To Expect In The Senate
• What To Expect From State Governors

Democrat Agenda Will Still Keep Micro-Businesses In Mind

Tuesday’s midterm elections brought sweeping changes to Congress, with Democrats now the majority in the House of Representatives and soon to be the majority in the U.S. Senate. These changes will not impact the effectiveness of the advocacy efforts of the National Association for the Self-Employed (NASE), because the association has continually advocated on behalf of its members in a nonpartisan fashion. It is important to note that, while the top small-business issues that Congress and the NASE have consistently focused will not change, the proposals to address those issues in the new 110th Congress will be considerably different from those discussed in the Republican led, 109th Congress. “Small business is not the sole domain of one party in our government. Issues affecting the micro-business community are issues which affect our nation,” said Kristie Darien, executive director for the legislative office of the NASE. “We’re ready to be adaptive to the new agenda in Congress and look at the new policy recommendations proposed by the Democrats on key issues.” The NASE will continue to advocate for our micro-business agenda in the new congressional session. Our main priority will still be to pass legislation to remove the inequity sole-proprietors face when paying self-employment tax on health insurance premiums. Historically, the issue garners bipartisan support. Additionally, the NASE is hopeful of an increased push for health care tax credits for small businesses, as well as refundable tax credits for the uninsured. There are also a number of other issues that are of special importance: Home Office Standard Deduction Proposals to Address the Tax Gap Price and Quality Transparency in Our Health System Paperwork Reduction Support for Federal Small Business Programs The NASE expects that some issues will not receive as much attention as in the past, including health savings accounts and small business health plans. However, they will remain on the NASE’s list of legislative priorities. For more information on any of the NASE legislative priorities for 2006, visit http://advocacy.NASE.org. What To Expect In The U.S. House Of Representatives Numerous long-term incumbents lost their seats in the 2006 election which will change the face of congressional leadership in the 110th Congress. With Democrats ascending to the majority in the House, we will likely have the first woman Speaker of the House, Nancy Pelosi from California. Her role will be to caucus the Democrats and set the agenda of the House of Representatives. The self-employed and micro-businesses will see changes in the way the key policy positions of a Democratic-led House approaches small business issues. The NASE expects to see a robust effort by the Democrats to increase the federal minimum wage. Democrats want to focus on the middle class and will look to alter the Administration’s tax cuts to re-route money to the segment of the population, possibly through tax increases on higher income individuals and larger revenue businesses. There will also be incentives for small business and manufacturing jobs in the U.S. The Democrats will discuss tax cuts for domestic small business and push for new tax cuts to encourage businesses to hire the unemployed, with a tax credit incentive for businesses that hire people who have been out of work for at least six months. Additionally, they want to minimize outsourcing and, thus, they promote the idea of a tax credit for businesses which create new jobs within a two year period. They intend to operate on a pay-as-you-go system that balances spending expenses with cuts and offsets in other areas. In regards to health care, the Democratic plan backs a health tax credit to help small businesses offer health coverage to their employees. They will support expansion of Medicaid and the Children’s Health Insurance Program (CHIP) for uninsured families and children. A large focus will be modifications to the Medicare Prescription Drug benefit to allow government negotiation drug prices and increased use of generics. The Democrats are supportive of Health IT and transparency within the health care system, though they do not agree with current Republican proposals on medical liability reform. There will also be an increased focus on finding ways to address the issue of the uninsured. The Democratic proposal will look to alter the Administration’s tax cuts to re-route money to the middle class, possibly through tax increases on higher income individuals and larger revenue businesses. There will also be incentives for small business and manufacturing jobs in the U.S. The Democratic proposal provides for approximately $32 billion in tax relief for small businesses so they can generate investment and jobs. They will push for new tax cuts to encourage businesses to hire the unemployed, with a tax credit incentive for businesses that hire people who have been out of work for at least six months. For more information about the likely agenda for the democrats, visit http://www.housedemocrats.gov/ and http://www.democraticleader.house.gov/pdf/thebook.pdf What To Expect In The Senate Not all Senators were up for reelection in the 2006 midterm elections. Republicans won 40 of the total 100 seats, bringing their total to 49 seats in the Senate. Democrats won 28 seats bringing their total to 51. Currently, the NASE is awaiting the results of races that will affect key Committee leadership. For example, Senator John Kerry, D-Mass., will become Chairman of the Senate Committee on Small Business and Entrepreneurship. He supports expansion of government programs including opening the Federal Employee Benefits Health Plan (FEHBP) to the uninsured and small businesses. With a few key Members losing races, the Senate Committee on Small Business and Entrepreneurship will have some changes in its roster. Senator Max Baucus, D-Mont., will ascend to the Chairmanship of the Senate Finance Committee. One concern on this front is that Sen. Baucus is a strong supporter of proposals to minimize the tax gap, and these proposals will negatively affect small business. Senators Jeff Bingaman, D-N.M., and Craig Thomas, R-Wyo., were strong supporters of the NASE’s self-employed bill in the Senate. Both won reelection. What To Expect From State Governors The total number of seats at stake was 36, since not all Governors were up for reelection in the 2006 midterm elections. Republicans won 15 seats bringing their total to 21 governorships. Democrats won 20 seats bringing their total to 28 governorships. As of press time, there is one undecided race in Minnesota which is leaning Republican. The Governor races are important because increasingly the states are becoming a testing ground for proposals and programs on issues that have difficulty gaining consensus in the national arena. For example, the recently passed, comprehensive health care plan in Massachusetts has become a template for possible national proposals. The NASE will continue to monitor states and the way they are addressing rising costs of health care because it is likely federal legislators will introduce those proposals on the national stage to address the issue of 46 million uninsured in our nation.