• Budget Cuts Could Nix Federal Business Survey
• SBA Extension Passes Congress
• SCHIP Reauthorization Expected This Week
• National Taxpayer Advocate Lists Tax Gap As Top Priority

Budget Cuts Could Nix Federal Business Survey

A House Appropriations bill may deny the funding of a vital business survey in an effort to direct more resources to increased security along the nation’s Southern border. A $10 million reduction to the Economic Statistics Group, which conducts the Survey of Business Owners for the U.S. Census Bureau, has been proposed on top of an existing $30 million cut to several programs. The business data obtained by this group within the Census Bureau demonstrates economic trends through the examination and extrapolation of demographic information of about 2.3 million firms. The NASE supports maintaining funding to the Economic Statistics Group, which provides policy makers with key data on businesses within our nation. The Senate version of the bill is also being debated but does not include cuts to the Census Bureau. For more information on the House Resolution 3093, visit http://thomas.loc.gov/.

SBA Extension Passes Congress With its current authorization set to expire early this week, the SBA received another short-term extension from lawmakers in both the U.S. House of Representatives and the Senate through mid-December. Congressional lawmakers have failed to come up with more binding legislation in the past several months, which has to lead to several temporary reauthorizations. The lagging response time of the federal disaster loan program has been at the heart of reauthorization debate since Hurricanes Katrina and Rita in 2005. “It’s been a tough road for the SBA this year,” said Kristie Darien, executive director of the NASE legislative office. “We hope that with the ongoing efforts of Congress and the Administration, the agency will continue to provide small businesses and the self-employed with helpful programs and resources.” Lawmakers have commended SBA Administrator Steven Preston’s efforts to streamline and personalize the agency’s business loan program since taking the post last year. However, Congressional leaders cited the program, while improved during Preston’s tenure, was still in need of a major overhaul. In addition, small business advocates have pushed for more loan program upgrades and incentives for lenders, as well as increased outreach to business owners that are often underserved, such as Native Americans, certain members of the military community, and women. The House Small Business Committee has passed 12 measures aimed at revamping and updating the agency’s programs. Go to http://sbc.senate.gov/index.cfm and http://www.house.gov/smbiz/ for more information about small business legislation. SCHIP Reauthorization Expected This Week   Both Chambers of Congress are gearing up to pass legislation that would expand funding for the State Children’s Health Insurance Program (SCHIP), in order to support more enrollees whose families are currently considered too wealthy to qualify. The proposals, though slightly different, are both expected to clear this week. The House Ways and Means Committee voted to increase tobacco taxes and cut some funding from the Medicare Advantage program in order to expand SCHIP. “The self-employed are often shut out of health coverage options because of skyrocketing costs,” said Kristie Darien, executive director of the NASE legislative office. “Programs and initiatives that help provide health insurance to their children aged 18 and under are a step towards more equitable treatment in coverage.” The Congressional Budget Office estimates the House bill will cost an average of nearly $8 billion per year over the next decade. It currently does not have sufficient budget cuts to offset its multi-billion dollar price tag. According to pay-as-you-go budget rules, additional spending must be counteracted by additional penny-pinching. In addition to the proposed cuts, lawmakers are also said to be considering trimming down bonuses for states that enroll children in the program. The Senate bill offers a similar expansion, but reduces additional funding of SCHIP after 5 years in order to comply with budget rules. President Bush vowed to veto an SCHIP measure that sought to drastically enlarge the program. Senate Democrats have been working to obtain the 67 votes needed to overturn the rule. Visit http://thomas.loc.gov/ for more information on the House or Senate bills (H.R. 3093 and S. 1745, respectively). National Taxpayer Advocate Lists Tax Gap As Top Priority National Taxpayer Advocate Nina Olsen recently delivered a report to Congress that identifies the top issues she hopes to address in the coming fiscal year, including taxpayer relations, private debt collection regulation and payment plans and compromises for taxpayers who are unable to pay their debts within the desired timeframe. “For fiscal year 2008, both the IRS and the Taxpayer Advocate Service (TAS) face similar challenges,” Olson wrote. “The IRS is under scrutiny for its efforts to close the tax gap, while TAS is struggling to address taxpayer difficulties that arise as a result of these very efforts.” Olsen had previously expressed concerns over excessive use of enforcement in the IRS’ efforts to close the tax gap, which is the difference between what the IRS collects in relation to what it is owed. The NASE shares this position, encouraging a combination of education and enforcement as the best way to close the tax gap. The National Taxpayer Advocate must submit two reports per year to the House Committee on Ways and Means and the Senate Committee on Finance. To view the most recent National Taxpayer Advocate’s 2008 Objectives Report to Congress, visit http://www.irs-tas.com. Share your experiences as a micro-business owner! Sound off on key legislative issues and get some free publicity for your business in the process by becoming a media contact. Visit www.NASE.org/mediarelations/contactsheet.asp to fill out an informational sheet on the background of your business. Then, send it back to us at the contact information listed on the sheet. If getting involved in the legislative process suits you better, go to the Advocacy page and “Tell Your Story” (http://advocacy.nase.org/issues/issues.asp). You have the option of allowing the NASE to share your micro-business story with your Members of Congress. By allowing the NASE to tell your story to legislators, you can play a vital role in illustrating the real life consequences and affects of issues they debate on a daily basis.