Issue Position: Small Businesses

Issue Position

Small businesses are the backbone of our local and national economy, making up 99 percent of all businesses and 70 percent of new jobs. The success of small businesses helps ensure job opportunity and provides vital goods and services at a local level.

As Ranking Member of the Small Business Finance and Tax Subcommittee, I will always work to make sure small business owners have the access to the capital and credit they need to conduct business, expand, and hire new workers.

I held a town hall meeting recently with small business owners in my District who are grappling with rising health insurance costs, overburdened with paper work, threatened by frivolous litigation, and in need of capital.

I introduced a small business growth bill that includes the following provisions:

Small Business Health Plans (SBHPs), or association health plans (AHPs): The bill would allow small businesses to form associations and make coverage more affordable by spreading risk among a much larger group, strengthening negotiating power with plans and providers, offering insurance across state lines, and reducing administrative costs.

Tax Relief: The bill would extend a provision that currently allows small business to deduct all or part of the cost of a business investment in one year, instead of spreading the tax savings across several years. This would increase capital to expand, hire new workers, and purchase new equipment.

Paperwork Relief: The bill would provide paperwork relief by allowing small businesses to correct first-time paperwork violations without penalty.

Frivolous Lawsuits: The bill would help reduce the number of frivolous lawsuits filed against small businesses by:

* Imposing mandatory sanctions against attorneys or parties who file frivolous lawsuits;

* Removing a "safe harbor" provision that allows plaintiffs and their attorneys to avoid sanctions for frivolous suits by withdrawing them within 21 days; and

* Reducing "court-friendly shopping" by requiring that plaintiffs in civil tort actions sue only where they live or were injured, or where the defendant's principal place of business is located.

* Government Contracts: The bill increases the number of government contracts awarded to small businesses owned and controlled by service-disabled veterans, qualified HUBZone small businesses, and small businesses owned and controlled by socially and economically disadvantaged individuals or women from 23 percent to 25 percent.

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