• House Democrats, Administration Refuse To Cry
  “Uncle” In AMT Fix
• House Passes Year-End Spending Bill
• Study Finds Predictors of Self-Employment

Happy Holidays From Washington Watch

This will be the final Washington Watch issue of 2007. We look forward to returning in mid-January with updates on micro-business topics ranging from legislative news from Capitol Hill to groundbreaking research studies and more. Look for the next issue on January 16, 2008. In the meantime, stay informed by visiting the NASE Web site at http://www.NASE.org.

House Democrats, Administration Refuse To Cry “Uncle” In AMT Fix As the end of 2007 approaches, of House Democrats, led by Charles Rangel of New York, continue to push for reform of the Alternate Minimum Tax (AMT) which affects more middle-class Americans each year. Rangel’s bill, which requires $55.7 billion in offsets to pay for it, has drawn criticism from White House officials, as well as House and Senate Republicans for increasing taxes on businesses which are foreign-based but have employees stationed in the U.S. and other domestic business concerns. In a report, Administration officials chided House Democrats for what may amount to a delay in tax season filing and the issuance of refund checks in 2008. They also indicated a veto from the President would be almost certain if the bill remains in its current state. Find out more information about the AMT reform proposal at http://thomas.loc.gov. To read the Bush Administration’s policy statement regarding the bill, visit http://www.whitehouse.gov/omb/legislative/sap/110-1/hr4351sap-h.pdf.

House Passes Year-End Spending Bill In an effort to tie up loose ends before the end of the year, the House approved a spending bill of nearly $1 trillion for 2008. The House bill includes emergency funding for operations in Afghanistan and other military uses, like protective equipment, but offers no provisions or funding for Iraq. The Senate will likely amend the bill to include an additional $70 billion for this purpose. House Democrats had originally asked for an additional $23 billion extra for education programs and veteran support but were unable to acquire enough Republican votes to pass the measure. Passage of the spending bill comes on the tails of a second presidential veto for a $35 billion expansion of the State Children’s Health Insurance Program (SCHIP), an issue which has been at the forefront of the Democrat agenda this year. Some lawmakers say the attachment of an SCHIP funding provision to the year-end bill may occur.   Study Finds Military Service, Education Level as Predictors of Self-Employment   Individuals with prior military experience or who have attained a bachelor’s degree or greater are more likely than other groups to turn to self-employment, according to the Small Business Administration’s Office of Advocacy. According to the study, those with prior military experience are up to 11 percent more likely to be self-employed. In addition, educational level may increase one’s likelihood of self-employment by over 8 percent. The report also found that homeowners are 7 percent more likely to be self-employed. The report “Educational Attainment and Other Characteristics of the Self-Employed: An Examination using Data from the Panel Study of Income Dynamics,” analyzed data from the Panel Study of Income Dynamics (PSID) for 2003, which examines demographic and sociological indicators as well as financial behaviors. View the entire report at http://www.sba.gov/advo/research/rs313tot.pdf. Reminder: Nominate Burdensome Regulations For Review Small businesses annually pay 45 percent more per employee to comply with federal regulations than big businesses do, according to the Office of Advocacy of the U.S. Small Business Administration. To nominate a regulation you feel is in need of review and reform, visit the Office of Advocacy Web site at http://www.sba.gov/advo/r3 by December 31, 2007. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.