WASHINGTON, D.C. — The U.S. House Committee on Small Business held a hearing on the Economic Stimulus for Small Business: A Look Back and Assessing Need for Additional Relief. Rep. Nydia M. Velazquez, D-N.Y., chairwoman of the House Small Business Committee, announced her plan to introduce the Small Businesses Tax Modernization and Stimulus Act of 2008, which will address the need for long- and short-term economic growth.
Velazquez was joined by ranking member Steve Chabot, R-Ohio, and witnesses Arthur Connelly, chairman of South Shore Bank and representative of the American Bankers Association (ABA); David Oates, president of Oates Associates Inc. and representative of the American Council of Engineering Companies; Rachelle Bernstein, vice president and tax counsel of the National Retail Federation (NRF); Dr. Mark Zandi, chief economist of Moody’s Economy.com; and William Myles of Myles and Myles Retirement Planners and representative of the Western Economic Council. The Small Business Tax Modernization and Stimulus Act of 2008 is an extension of The Economic Stimulus Act of 2008, which has given 130 million American families stimulus checks and tax write-offs to 26.8 million small businesses for investments. However, with the current state of the U.S. economy, Velazquez, Chabot and witnesses at the hearing agreed that it is critical to analyze and put into effect other ways to stimulate small businesses. To produce long- and short-term effects, the committee and witnesses suggested different mechanisms for economic impact. To sum them up, Zandi, says, “An effective package of stimulus could include a gas tax holiday, expansion of the food stamp program, a payroll tax holiday, aid to state governments, extension of the investment tax incentives, and increased infrastructure spending. The biggest lift from this stimulus would go to lower income households struggling to pay for soaring gasoline and food prices, and small business that is getting hit hardest in the current downturn.” The Automotive Service Association (ASA) supports the Small Business Administration’s (SBA) loan programs for repair shops. On behalf of the ABA, Connelly says, “Another issue is the complicated process that both banks and businesses have to go through to apply for SBA loans. Right now the procedures manual is 400 pages long. Believe it or not, that is less than half its former size; clearly, great strides have been made. However, progress needs to continue to attract lenders and bring this program to more small businesses. Now is the time to make this process easier and cheaper for small businesses and the banks who serve them.” Once the Small Business Tax Modernization and Stimulus Act of 2008 is introduced, it will be available on www.TakingTheHill.com. A link will be posted in the “Press Center” under “References and Bills.” |
