RSS Feed I just returned from a week in Washington, D.C. As usual, I am always amazed at the enormous waste of spending that goes on in the halls of Congress. When I walk those halls, I am proud of our country yet see things going on there that astounds me. For example, lobbyists hanging around in every congressional doorway, youngsters making decisions on pieces of legislation that impact all of us, and hundreds of government employees scurrying about to conduct the nation's business. One of my most enjoyable times when I am there is talking to taxi cab drivers. They can tell you what is really going on! They tell me times are slow, they are much more aggressive in their marketing, they are worldly and can voice their opinion on just about any world topic and seem to have a grasp on all the dynamics in Iraq or Afghanistan or Pakistan. Many are very intelligent.
While in the District, I met with the media, congressional aides, and academia. They asked me on several occasions, "what do small business owners want and why aren't small business owners using their voices more to articulate their needs and wants." I told them that most small business owners I speak to want to be left alone to build their businesses and innovate and create new jobs. Their response to me? Then, why aren't they using their voices more on these critical issues that congress is discussing which will have a profound effect on their businesses? I have always believed that change can happen if 24 million small business owners come together with one voice! But that is a tough coalition to organize. If you run a business and you're not involved in public policy; then public policy will run your business. There are a lot of issues being pushed right now. Small business owners need to weigh in on these issues and voice their opinion. They have enough clout to make a difference!
Congress left Washington, D.C. this week for the July Fourth recess without a deal on health care reform. In the Senate, Finance Committee Chairman Max Baucus (D-MT) said he has developed a way to pay for the legislation that would cost less than $1 trillion. Whew, that makes me feel better!
Gruber’s Health Care Study Claims Government Run Heath Care will help Small Business?
The health care debate hit a speed bump on Capitol Hill last week as policy makers tried to get their arms around the trillion dollar price tag of the President's plan. Slowing down the process is not a bad thing, change this big is going to require more thought, debate and input from the people who are going to be most impacted including consumers, small businesses, medical professionals, insurance carriers, and large companies.
In an effort to prop up the President's plan to provide health care coverage for all, through a massive government run system, MIT economist Jonathan Gruber released a study that argues the President's government run plan will benefit small to midsize businesses http://www.smallbusinessmajority.com/.
The new Administration is trying to make good on their campaign promise to expand the Family and Medical Leave Act of 1993 (FMLA) from companies that employ 50 or more workers to cover businesses with as few as 25 employees.
Who is this going to hurt? Most small businesses who are struggling to keep their doors open during the current economic downturn. And, it will have a devastating impact on our non-profit sector, many of who can least afford these new mandates.
H.R. 626 (sponsored by Rep. Carolyn Maloney/Oversight and Government Reform Committee) passed the House by a vote of 258-154 last week. Congresswoman Maloney is an advocate for federal employees to have paid parental leave. While this is not directly one of NCPA's Family Policy Center issues, it may mean the whole "leave" issue/debate will get traction which could include the private sector being mandated to do the same.
Currently, federal employees are guaranteed 12 weeks of unpaid leave for the birth or adoption of a child. HR 626 would allow federal employees to substitute 4 weeks of paid leave and expands coverage to foster children as well. It is estimated by the Congressional Budget Office that this bill will cost roughly $1 billion over the next five years. This bill pertains ONLY TO FEDERAL EMPLOYEES. At a time when all families are struggling to find and keep jobs, should the private sector be asked to pick up the tab for a benefit that many of them do not have? This bill now heads to the Senate.
What will it be? A federal soda pop tax? Taxing some health insurance benefits? Higher fees on beer, wine and hard liquor? These are just some of the options being tossed around in the Senate.
How do we pay for expanding coverage to over 40 million uninsured people? The Senate Finance Committee recently released 40 pages of revenue raising options. They include cuts to providers and new taxes.
The Finance Committee report says, "Many proposals expected to reduce health spending in the long run may not produce sufficient savings in the short run to finance reform. Other proposals to generate revenue for health care reform could include taxes that affect lifestyle choices and taxes that generally target loopholes.
Health care is going to be debated in Congress throughout the summer. There is a lot at stake and most of the focus is around either we have a government run system or we don't. Instead, I hope we can broaden the debate and focus on some other ideas such as:
Controlling costs. This month in a meeting with the President, key health care groups pledged to slow the growth of health care spending by 1.5% a year over the next ten years which is estimated to save about $2 trillion. This is a good first step because any health care plan must address the rising cost of care.
Congress is at it again, using the excuse of the swine flu to mandate paid time off. This time the pig’s nose is under the tent. And, this is the way to thank small business during National Small Business Week!?
On Monday congressional Democrats introduced legislation that would mandate employers to give workers seven paid sick days a year. They argue that the outbreak of the swine flu has made it necessary to require employers to give their employees time off, suggesting that employers and employees aren’t able to make the determination when they should stay home.
Let’s see if we can follow this logic?
Swine flu + Inability for workers to take time off = People coming to work with swine flu = We need mandated paid time off.
But doesn’t this make more sense?
Swine flu + Inability for workers to take time off = Employers realizing it’s not profitable or productive to have employees coming to work with swine flu = Employers will voluntarily offer more flexible schedules.
Unfortunately this debate isn’t going to go away soon. The bill has 100 co-sponsors and a hearing will be held in the House Education and Labor Committee on June 11th. This bill has been introduced before and this time there is going to be a push to include it in the health care reform package that the President wants to sign this year.
This proposal is the wrong solution – increasing costs and mandates on our small businesses won’t help kick start the economy. Instead, let’s look for policies that empower the employer and the employee. Let’s support legislation that allows employees the flexibility to take time off in lieu of overtime pay. We need policies that work for working families, not mandates that hurt our economy.
This is National Small Business Week! Award-winning entrepreneurs from around the country will come together to be recognized for the important role they play in our economy. Washington, D.C., will play host to these small business owners and advocates of small business. The entire city will be focused on the importance of small business beginning May 17-23, 2009.
For the past decade, our nation's small businesses have produced 60 percent to 80 percent of the new jobs on an annual basis. After 9/11 in 2001, small businesses produced 100 percent of all net new jobs to help pull us out of the doldrums. Small business owners even employ about half of all U.S. workers. Setting aside one week a year to honor successful entrepreneurs is meaningful. On Wednesday, May 20, the national small business person of the year will be announced!
The public is invited to attend key forums during this week. These public forums will feature leading experts discussing issues of critical importance to small businesses and to policy makers. Listed below are Town Hall moderators and speakers and if you can't attend in person, visit SBA's online webcasting at http://www.NationalSmallBusinessWeek.com/.
Every time you visit a small business this week, congratulate them on their success and thank them for taking the risk.
WHO:
Town hall and forum moderators and speakers include:
JJ Ramberg, Host of MSNBC's "Your Business" and Town Hall Moderator
Joseph Jordan, SBA Government Contracting and Business Development
Sara Lipscomb, SBA General Counsel
Brian Moran, Moran Media Group
Raghav Lal, Visa Global Business
Stacey Wueste, HP's Imaging and Printing Group
Nancy Gioia, Ford Hybrid Vehicle Programs
Rieva Lesonsky, CEO of GrowBiz Media
John Jantsch, Creator of the Duct Tape Marketing for small business
WHAT:
TOWN HALL AND KEY BUSINESS FORUMS on critical issues that
impact small business and the economy to include:
Town Hall Meeting: Successful Business Strategies in a Down Economy
Financial: Strengthening Small Businesses in a Challenging Economy
Innovation: Technology – Our Competitive Edge
Social Media: Transforming the Way You Do Business
WHERE:
National Small Business Week
Mandarin Oriental Hotel
1330 Maryland Ave., SW
Washington, D.C.
WHEN:
May 18-19, 2009
Visit http://www.NationalSmallBusinessWeek.com/ for registration details and schedule
*Forums have a nominal $5 fee each to attend.
ATTENTION: Are you awake out there? Do you want your access to health care or lack of health care to be decided by the federal government? The SHOP Act has been introduced in Congress. The Small Business Health Options Program Act!
Here is the background:
- Health and Human Services (HHS) would administer a health insurance program for small businesses and self-employed individuals to purchase health insurance through both state and national insurance pools.
- HHS would work with the National Association of Insurance Commissioners to set rating requirement, administrative procedures, and standards of external and internal review.
- It prohibits the use of health status and claims experience for small groups, subject to the same pitfalls of community rating and guaranteed issue requirements that increase costs for everyone and discourage participation from younger, healthier groups and individuals.
- States could opt out and apply their own health benefit plans.
- The SHOP Act provides a tax credit to participating small businesses which distorts the market and increases the likelihood of crowding out private insurance, but does nothing to address the rising costs of health care.
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