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April 16-May 4, 2007
Latest Congressional Action
- Senate Pushes Back Sarbox Reform
The Senate fought back an attempt to reform the Sarbanes-Oxley Act. The measure would have exempted firms with market capitalization of less than $700 million, or with revenue of less than $125 million, from establishing and maintaining internal controls and procedures. The Chamber supports a review of Sarbox Section 404 that is too burdensome for smaller companies to comply with and affects the competitiveness of the U.S. capital markets.
Small Business
- Small Business Leads 7 Sectors
The Small Business Administration's Office of Advocacy found that small businesses play a vital role in the U.S. economy as they account for more than half of gross domestic product in seven out of 16 non-farm sectors of the economy, including real estate and leasing, professional and technical services, and health and social services. They account for more than 80% of U.S. GDP in two sectors, construction and "other services."
- Minimum Wage, Tax Cut Package
House and Senate leaders have agreed to a tax-breaks package for small business totaling about $4.8 billion that should ease the passage of the minimum wage bill. It was included in the supplemental funding agreement that was finalized yesterday. The Senate Finance Committee had originally proposed tax breaks of $12 billion while the House approved a smaller $1.3 billion package. Some Senate Republicans are extremely disappointed in the small tax breaks package and referred to it as less than peanuts, rather a "peanut shell." The U.S. Chamber opposes a minimum wage increase as the impact will fall disproportionately on small businesses. Any increase should be coupled with a permanent matching small business tax-break package.
- Small Business and Federal Contracts
The House Small Business Committee approved a bill to make more federal contracts obtainable for small businesses. The bill reauthorizes the SBA's procurement programs and reduces the practice of 'contract bundling' so there are more individual contracts available to be awarded. Currently, 23% of contracts are awarded to small businesses; the bill aims to raise that percent to 30%.
- Small Business Loans
Despite opposition from the White House, the House passed legislation by a 380 to 45 vote to provide long-term loans for start-up companies or those seeking to expand their businesses. The Small Business Administration would use subsidies to lower loan fees for small businesses. U.S. Rep. Jay Inslee (D-WA) authored an amendment within the bill that gives companies with environmentally-friendly goals better access to low-impact and sustainable building design. Inslee explained that it can increase upfront costs, but reduce upkeep expenses by twenty percent or more.
Transportation and Infrastructure
- Mexican Trucking
The House Transportation and Infrastructure Committee approved a measure that will curb Mexican trucks' access to U.S. roads. The bill was approved by a 66-0 vote. The vetoed supplemental war funding bill also included language on restrictions for Mexican trucks, although the restrictions were loser. It is unclear whether the new war funding bill will include such language.
Source:
U.S. Chamber of Commerce, Southeast Regional Office. Moore Hallmark, Regional
Executive Director.
501 Village Trace, Suite 201, Bldg. 9A Atlanta, GA 30067
P: (770) 951-8864 F: (770) 956-1216
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