• House Gives Bush Small Biz Budget Thumbs Down
• GAO Investigates Offshore Business’ Contributions To Tax Gap
• Governors Discuss State Strategies to Expand Health Care Coverage
• Receiving Stimulus Refund As Easy As Filing 2007 Return

House Gives Bush Small Biz Budget Thumbs Down

The House Small Business Committee voted to reject the Bush Administration’s 2009 Budget, which cuts funding to the Small Business Administration (SBA), calling the proposal “short on new ideas.” “Many SBA programs have been shown to put two dollars into the Federal Treasury for every one dollar that is invested,” said Chairwoman Velázquez. “Cutting initiatives such as these, which foster economic growth and reduce the deficit, is remarkably shortsighted and irresponsible.” Since 2001, the SBA budget has been cut by nearly 50 percent. For 2009, funding for Small Business Development Centers (SBDCs), the Women’s Business Centers (WBCs) and other programs has been cut. The 7(a) loan program faces increased lender fees, which has officials speculating the need to turn to funding from non-government entities. Last minute legislation in December approved more than $40 million in additional funding for 2008. As part of the new law, Small Business Development Centers, Women’s Business Centers and the Microloan program each receive a boost in funding. Visit the House Small Business Committee site to read their recommendations [http://www.house.gov/smbiz/letters/fy2009-views-estimates-letter.pdf].

GAO Investigates Offshore Business’ Contributions To Tax Gap Senate lawmakers are calling on the Government Accountability Office (GAO) to continue examining possible offshore tax evasion in the Cayman Islands. The Senate Finance Committee, the primary agent involved in crafting U.S. tax policy and programs, last year asked federal officials to look into a five-story Cayman Islands building listed as the address of thousands of U.S. and international companies. “Americans benefit from a global economy,” said Ranking Member Chuck Grassley (R-Iowa). “We need to strike the right balance between allowing Americans to benefit from the global economy and policing the evasion of U.S. taxes.” Last year, the U.S. Department of the Treasury estimated a $345 billion discrepancy between what is owed in tax revenue compared to what is actually collected. The scrutiny of offshore business accounts takes heat off the self-employed community, who has been unfairly targeted in current proposals to narrow the tax gap. The IRS puts the blame for 32 percent – or $109 billion – directly on the self-employed.

Governors Discuss State Strategies to Expand Health Care Coverage Governors Tim Pawlenty (R-MN) and Ed Rendell (D-PA) testified before the House Small Business Committee at a hearing focused on state strategies to expand health care coverage to the uninsured. States have become the testing ground for various health reform proposals. Federal policymakers have been looking to the experience of the states in this area as they craft a national policy to address skyrocketing health care costs. As the governors described the differing dynamics of their states, and, perhaps marking their differing political philosophies, they offered distinct approaches to the problems facing our health care system. Throughout the hearing, the chairwoman of the committee, Representative Nydia M. Velázquez (D-NY), repeatedly emphasized the need to specifically address small-businesses health care concerns. “Six out of 10 uninsured Americans—including more than 10 million children—are in households headed by self-employed workers or small-business employers,” she said. “Providing affordable and accessible health care options for entrepreneurs must be part of any effort to increase the number of insured Americans. It just makes sense.” Governor Pawlenty favored more market-oriented approaches, such as adding cost-sharing aspects and emphasizing performance-based medicine. Conversely, Governor Rendell advocated for a stronger role for the government by mandating coverage and by giving state insurance commissioners more authority to regulate costs. Both agreed, however, that promoting competition among health care providers is crucial to addressing costs. For more information on the hearing, please visit http://www.house.gov/smbiz.

Receiving Stimulus Refund As Easy As Filing 2007 Return The Internal Revenue Service is mailing 130 million taxpayers reminding them to file a 2007 tax return in order to receive a 2008 economic stimulus payment. The mailings are set to take place throughout the month of March. The informational notice, titled Economic Stimulus Payment Notice, alerts individuals that they may be eligible for a one-time stimulus payment of up to $600 ($1,200 married filing jointly) starting in May. There also is a $300 per child payment for qualifying children younger than 17. More details are available at www.irs.gov.   Trying To Navigate Your Business Taxes? The NASE Can Help   This small-group, two-hour seminar offers close access to a CPA specializing in taxes affecting the self-employed. Find hidden deductions Employ your spouse or children Learn Tax Code changes for 2007 Enjoy breakfast and networking with fellow micro-business owners in your community Learn more online at www.NASE.org/taxseminars. 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.