• President Bush Delivers State Of The Union Address
• House Passes Bipartisan Stimulus Package
• Small-Business Owners Discuss Barriers To Health Care Coverage
• Witnesses Offer Suggestions To Improve SBIR Program

President Bush Delivers State Of The Union Address

While acknowledging that the economy was facing “a period of uncertainty,” in his final State of the Union address President Bush said Americans could be “confident” about the growth of the economy. The economic stimulus package negotiated between the White House and congressional House leadership includes small-business expensing and depreciation provisions, as well as rebates for low income individuals and families. President Bush also revisited his proposal to offer a standard deduction for health insurance and increase access to private insurance plans. Over the years, the NASE has also shown strong support for legislation that removes barriers to affordable health coverage for the self-employed, such as the Equity for Our Nation's Self Employed Act, which allows sole proprietors to deduct health insurance premiums from their Self-Employment Tax. “The NASE was pleased to see both the economy and health care highlighted in the President’s State of the Union address,” said Kristie Darien, executive director of the legislative office of the National Association for the Self-Employed (NASE). To access the entire State of the Union address, visit the White House Web site at http://www.whitehouse.gov/stateoftheunion/2008/index.html.

House Passes Bipartisan Stimulus Package House lawmakers passed a $145.9 billion bipartisan stimulus package last week aimed at reinvigorating the U.S. economy. The bill must now be approved by the U.S. Senate before it can be sent to the President to be signed into law. The stimulus package includes the following provisions: Tax Exemptions For Businesses With Investment Expenditures Companies would be allowed to write off 50 percent of new investment expenditures in 2008 for items subject under current law to depreciation over 20 years or less. The remaining value of such investments would be depreciated over the life of the item. Small businesses with under $800,000 in overall investments would be able to write off twice the amount of new investment expenditures, raising the limit to $250,000. Advanced Refunds Qualified individuals will receive a one-time payment from the U.S. Treasury according the guidelines listed below. The check would have no impact on 2007 or 2008 tax refunds. Workers who earned at least $3,000 in 2007, but paid little or no income tax, would qualify for checks in the amount of $300 for individuals ($600 for married couples). Most other taxpayers would get checks of up to $600 for individuals ($1,200 for married couples). Payments would phase out for individuals with more than $75,000 in adjusted gross income (and couples making more than $150,000). Those meeting either of the two conditions above would receive an additional $300 per dependent child, up to age 17, with no cap on the number of children who qualify. Higher Limits For Housing Loans The Federal Housing Administration loan limit would be permanently increased from $362,000 to a maximum of $729,750. Fannie’s and Freddie’s conforming loan limits would be temporarily increased for one year from $417,000 to a maximum of $729,750. The bill’s passage may be hindered as the Senate Finance Committee marks up the Senate’s version of the bill. The Senate bill differs substantially from the House version. Among other inconsistencies, the Senate version includes an extension of unemployment insurance, payments to senior citizens, as well as additional aid for U.S. businesses. More information about the proposed economic stimulus package (H.R. 5140) can be found through the Library of Congress, thomas.loc.gov.

Small-Business Owners Discuss Barriers To Health Care Coverage Combating high health care costs for micro-businesses has been a priority for the National Association for the Self-Employed (NASE) since it was founded in 1981. Forty-seven million Americans currently lack health insurance, more than half of whom live in a household headed by small-business owners or their employees. The House Small Business Committee reports that health premiums have increased an average of more than eight percent per year since 2001 for small employers, with even higher increases for firms with less than twenty-four workers. The committee heard testimony on this issue last week from a variety of small-business owners who have had difficulties obtaining health insurance for themselves and their employees. Cost was cited as a major concern, as well as excessive amounts of paperwork. As a result, time was diverted from profit-making ventures. “High premiums are a serious problem, but so are the less obvious costs faced by entrepreneurs looking to offer health benefits,” said Chairwoman Velázquez. “When small-business owners are forced to divert so much of their time and resources to dealing with this, it takes away from their ability to focus on growing their firms and driving the economy.” For information on how to make more informed health care decisions and for tips on cutting health costs, visit the NASE Health Resource Center at http://health.nase.org.   Witnesses Offer Suggestions To Improve SBIR Program The House Small Business Committee held a hearing on Tuesday examining the Small Business Innovation and Research (SBIR) program. Witnesses at the hearing stressed the importance of the program in guaranteeing American competitiveness, and urged the committee to modernize it to better adapt to today’s technological and entrepreneurial environment. Among other suggestions, they proposed increasing the amount in grants, reorganizing the application process, and allowing firms with venture capital investment more flexibility to participate in the program. 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.