• President OKs Internet Access Law
• Micro-Businesses: Few Web Sites, Strong Web Presence
• Senate Tackles Federal Contracting Regulations

President OKs Internet Access Law

The NASE applauds President Bush’s decision to keep Internet access tax-free through 2014. Many business owners breathed a sigh of relief last week as the President signed a bill – H.R. 3678 – to allow tax-free Internet access as it was set to expire October 31st. The legislation also upholds a ban of particular taxes on Internet commerce. Micro-businesses are small by nature so they must rely upon the ease and accessibility of the Internet to conduct the advertising that is vital to their growth,” said Kristie Darien, head of the NASE legislative office in Washington, D.C. “The widespread support of the legislation will ensure the vital operations such as marketing and client communication remain available.” The House measure initially proposed a four year ban, which the Senate lengthened to seven. The Senate also included language to exempt paid email, instant messaging and various other services. The law also includes a provision to invalidate previous “grandfather” laws which had previously permitted some states to continue taxation regardless of the ban. The exemptions were granted to states that had access taxes in place before the 1998 mandate. Read more about the measure at http://thomas.loc.gov.

Micro-Businesses: Few Web Sites, Strong Web Presence More than two in five micro-businesses (43 percent) shy away from operating a Web site for their business, according to an online survey by the National Association for the Self-Employed (NASE). However, the self-employed rely heavily on the Internet to sustain their companies. “The Internet is an essential tool for today’s micro-businesses because it allows them to stay up-to-date on the latest products and services, as well as keep in touch with customers,” remarked Kristie Darien, executive director of the legislative offices of the NASE. “However, small enterprises are at a disadvantage in that many lack the resources to maintain a site full-time.” When asked how they utilize the Internet for business purposes, sending and receiving email (94 percent), finding information or conducting research (92 percent) and purchasing products or goods (29 percent) rounded out the most popular responses. Micro-business owners also indicated that they rely upon the World Wide Web to market or advertise their business, as well as maintain a company Web page. Of those who participate in interactive web-based activities, more than one-third of the self-employed opt to watch videos while the same amount choose to read online community chats such as forums, news groups or discussions. View full survey results at http://www.nase.org/Survey/past_surveys.asp. Senate Tackles Federal Contracting Regulations For the past several months, lawmakers have argued about the allocation of federal contracts to small businesses which has fallen short of the 23 percent required by law. In response, the Senate Committee on Small Business and Entrepreneurship Committee Chairman John Kerry (D-Mass.) and Olympia J. Snowe (R-Maine), the Ranking Member, will present their legislation for consideration this week, with a vote set to take place Wednesday. The bill, S. 2300, builds upon the work of the committee during its review of the Small Business Administration (SBA) and its associated programs. According to a written statement released by Senators Kerry and Snowe, the Small Business Contracting Revitalization Act (S. 2300) proposes the following: Reduce contract bundling by improving oversight by the SBA; Increase oversight and establishing enforcement mechanisms in subcontracting; Expand authority to help service-disabled veteran-owned small businesses Strengthen enforcement for size and status standards required for certification. The bill also proposes additional outreach to women-owned small businesses. For more information on the bill, visit http://thomas.loc.gov. Learn More Learn more about the self-employment tax and speak out for micro-businesses by visiting the NASE’s Legislative Action Center at http://advocacy.NASE.org.