• Small Business Tax Relief Heads To White House
• Proposed SBA ’09 Budget Sees More Cuts
• Health Organizations Call For Federal Tech Platform
• NASE Members Share Their Best Financial Decisions

Small Business Tax Relief Passes Congress, Heads To White House

On its way to the President for his signature is legislation passed by Congress that provides increased business equipment expensing for small businesses. Part of a larger economic stimulus package, the law will increase the amount of qualified purchases made in 2008 that can be written off as a business expense. The expensing limit would be boosted from $125,000 to $250,000 for firms with an $800,000 cap. In addition, when signed into law, individuals with $75,000 or less income in 2007 will receive a $600 tax rebate check from the IRS while couples with $150,000 or less income will receive a $1,200 rebate. “Small businesses account for almost half of our economy and create almost two-thirds of all new jobs, so this targeted tax incentive is a wise investment in our country’s economic stability,” said Senator John Kerry, Chairman of the Committee on Small Business and Entrepreneurship in a statement. Both the increase in business equipment expensing and the rebates will greatly assist micro-business and self-employed this year as many face a slowing local economy. Some lawmakers have alluded to the possibility of a second stimulus package to provide housing support or increased infrastructure. Read more about the stimulus plan (HR 5140) at thomas.loc.gov.

Proposed SBA ’09 Budget Sees More Cuts Though President Bush increased the capacity of the Small Business Administration’s disaster loan program to $1 billion, funding for other federal small business programs remains critically low. “The 2009 budget alters financial support for the microloan program and shifts the cost for technical assistance to lenders,” said Kristie Darien, executive director of the NASE legislative office. “It’s also extremely disappointing to see stagnant funding for counseling programs, such as the Small Business Development Centers and Women's Business Centers.” Funding for small business financing programs remains the same, at more than $28 billion. However, funding for Small Business Development Centers and Women’s Business Centers would be cut by a combined total of $11 million. The SBA has said they will need to turn to private organizations to help fund counseling programs. “The significant proposed cuts to business counseling programs will have a detrimental impact on our ability to help small businesses succeed,” remarked John Kerry, D-Mass., chairman of the Senate Small Business and Entrepreneurship Committee in a statement. For additional information on the SBA plan, visit www.sba.gov and search under “Budgets, Plans & Reports.”

Health Organizations Call For Federal Tech Platform Members of the Health IT Now! Coalition and the Information Technology Industry Council (ITI) urged Congress to adopt legislation to promote the use of health information technology (health IT) across the nation. A long legislative priority of the NASE, health IT would facilitate the transfer of paper medical records to secure electronic copies. It would also cut down on medical errors and provide easier communication between medical professionals. The Health IT Now! Coalition joins other organizations, policymakers and legislators who have called for a federal interoperability platform. Such a platform would allow compatibility between health IT systems across the country. The Coalition is also calling for legislation that would offer financial incentives to encourage the adoption of Health IT; provide patient education; and resolve issues of privacy and security. Visit http://healthitnow.com for more information on the coalition. To find out about the NASE’s efforts on Capitol Hill in regards to health care, go to http://advocacy.nase.org/legislative_briefs.asp.   NASE Members Share Their Best Financial Decisions   Budgeting was a popular theme in a new study by the National Association for the Self-Employed (NASE) that asked micro-business owners about their best financial decisions. Almost half of entrepreneurs said that learning to accurately forecast revenues and expenses has been crucial to their business cash flow, but they are not just concerned with the future of their companies. Forty-three percent have their own interests in mind too, listing “starting a retirement account” as their best savings decision. Start-up costs and fluctuating revenue often force micro-businesses to borrow money, and avoiding prolonged debt was also frequently mentioned by respondents. Two in five said that paying off those debts has been a key to their success, while nearly one third were able to avoid carrying any sort of balance. For complete survey results, click here. Lawmakers and media outlets across the country rely on and regularly cite the NASE as a source of small and micro-business expertise. Help the NASE make sure the micro-business perspective is heard by taking this month’s poll. Click here to log-in and participate. 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.