March 3, 1997

New Bill Limiting Government Mandates on Small Business is a Step in the Right Direction, Says the National Association for the Self-Employed

Washington, D.C. -- A bill introduced today by Senator Spencer Abraham (R-MI) would prevent the federal government from imposing costly mandates on small businesses without owning up to those costs in advance, according to the National Association for the Self-Employed (NASE). The NASE strongly supports the proposed legislation.

Abraham's "Mandates Information Act of 1997" expands the reforms of the 1995 Unfunded Mandates Act to include private-sector mandates. The bill establishes a "point-of-order" in the House and Senate against any bill whose private-sector mandate exceeds $100 million in annual cost. The point-of-order would automatically bar any further floor action against a bill that surpasses this threshold, unless waived by a majority vote. To determine the cost of a proposed mandate, the bill directs the Congressional Budget Office to estimate its impact on consumer costs, worker wages, and the availability of goods and services.

"The government-imposed costs of running a small business today are high enough to cause some companies to close their doors," said NASE President Bennie L. Thayer. "Tax and environmental regulations are expensive not only in finances, but time and effort as well. Self-employed individuals are excessively burdened by Social Security. On the other hand, Congress has taken away some avenues to recoup costs, such as cutting the deduction for meals and entertainment expenses -- the most common way small business people advertise their services. Senator Abraham's bill is a step in the right direction; an insurance policy that small businesses will not be tapped to pay for more government initiatives down the road.

"Small businesses are the engine that runs America's economy," Thayer continued. "Congress needs to consider legislation such as Senator Abraham's, and other efforts to cut costs and expand opportunities. Instead of asking what new hoops small businesses should jump through, government should ask what it can do to help these businesses thrive and grow -- both now and in the next century, both here and abroad.

"Leaders like Senator Abraham recognize that the success of small business is the success of the nation," Thayer concluded. "We look forward to working with him and other small business advocates in Congress to turn their proposals into action."

 

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