Since the new stimulus package is back in the news, I’ve decided to reprint one of the original releases from the
Committee on Small Business:

News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release                                                                               CONTACT:  Press Office
July 24, 2008                                                                                                                 (202) 226-3636

Committee Examines Need for Additional Stimulus Package
Small Business Tax Modernization Bill Introduced to Help Spur Economy

WASHINGTON, D.C. — Despite the benefits from the economic stimulus plan adopted earlier this year that boosted consumer spending, economic growth remains unsteady.  High energy prices, inflationary pressures, and the ripple effects from the housing market mortgage meltdown continue to have dampening effects.  Sales rose 1% in May, proof that the first economic stimulus plan is working, but with its affects waning, the House Committee on Small Business held a hearing to explore the next steps needed to improve market conditions.

“Small businesses operate in virtually every phase of our national economy, leading the marketplace in job growth and production,” said Chairwoman Velázquez. “Entrepreneurs are the backbone of our commerce, we must capitalize on the momentum they gained from our earlier stimulus to invigorate our businesses.”

The nation relies on its entrepreneurs to stimulate growth, with small firms creating up to 80% of new jobs and producing 50% of consumer goods.  With continuing high unemployment and rising consumer costs, witnesses said they believe a second stimulus package would help small businesses give the economy another much-needed boost.

“The biggest lift from this stimulus would go to lower income households struggling to pay for soaring gasoline and food prices, and small businesses who are getting hit the hardest in the current downturn,” said Dr. Mark Zandi, Chief Economist and co-Founder of Moody’s Economy.com, during his testimony before the committee.

Emphasizing the important role small firms play in stimulating prosperity, Chairwoman Velázquez introduced new legislation, the Small Business Tax Modernization Act of 2008 (H.R. 6601), to address current inequities facing small businesses in the tax code.  The bill acts upon findings from a committee report released in April highlighting tax codes unchanged since 1986 which must evolve to reflect the modern business environment.

“American entrepreneurs of the 21st century are ready to lead the way to financial recovery, but our tax system is so out-of-date that many can’t take full advantage of the opportunities before them,” said Chairwoman Velázquez. “By modernizing the tax code to keep pace with today’s realties, we’re giving small firms the right tools and ensuring they keep America at the forefront of the global marketplace.”

During the hearing, witnesses praised the benefits of the stimulus package enacted earlier this year, and called for further targeted steps that would benefit consumers and financial markets.  They urged the Committee to advance a new stimulus plan that includes infrastructure spending, tax and regulatory relief for small businesses, and assistance to struggling families.

“Small business relief must be part of a second stimulus package to get our economy back on track,” Chairwoman Velázquez said. “U.S. entrepreneurs are committed to America’s economic sense, and it just makes sense to give them a chance to achieve that goal.”

To see video of (today’s hearing), click here.

Supporters of the Small Business Tax Modernization Act include:

American Institute of Certified Public Accountants

Independent Community Bankers of America

American Homeowners Grassroots Alliance

S Corporation Association

Air Conditioning Contractors of America

US Chamber of Commerce

National Federation of Independent Businesses

National Restaurant Association