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

For Immediate Release
January 24, 2007

CONTACT: Kate Davis, Austin Bonner (202) 225-4038

State of the Union Falls Short on Answers for the Nation's Small Business Owners
Velázquez highlights need for commitment to provide solutions for entrepreneurs

WASHINGTON - Last night, as the president gave his State of the Union address to Congress, Chairwoman of the House Small Business Committee, Nydia M. Velázquez, highlighted that the president's agenda fell short in providing answers, and explanations, on how the administration plans to address the needs of small businesses.

"While there was mention of new ideas on health care reform, much of the address focused on initiatives that the Bush administration has been touting since coming into office - but has yet to move forward," Chairwoman Velázquez said. "Last night, the nation's small business owners were waiting to hear answers from the president on how the administration would help them cope with some of their most pressing problems - healthcare and energy costs - but in many cases, it left them with more questions than answers."

Clearly, one of the biggest issues facing small businesses today is access to health care. The president introduced a new health care proposal last night that Chairwoman Velázquez highlighted will only work if there are broader elements to ensure that the employer-based system of health insurance is maintained. While the plan would restructure the tax code to create greater transparency in health insurance costs and provide a tax break to individuals with less generous coverage, it is unclear if the plan would help the vast majority of uninsured workers of small firms who cannot afford insurance. It is critical that any reform address the lack of options for small businesses and that it is simply not another mechanism to have employers to switch to a low cost, low coverage plan such as Health Savings Accounts (HSAs).

The president also outlined a series of policy initiatives on energy - many of which were a recitation of previous ideas that have gone nowhere. While the president again pledged support for the development of alternative energy technologies to decrease gas consumption and slow climate change, recent history provides little reason for optimism that these will be implemented. The administration offered a similar proposal last year for energy reform when he unveiled the Advanced Energy Initiative. However, the administration's budget cut more than $3 billion in programs designed to assist small businesses in becoming energy efficient, and developing alternative technologies, creating skepticism over the administration's commitment to moving this new proposal forward.

"The bottom line here is that if this administration is truly committed to meeting the needs of this nation's small businesses - it will start following up on its promises, and doing the work," Chairwoman Velázquez said. "There is no doubt that the president has introduced serious proposals - but it is doubtful as to whether or not these are the answers small businesses need in order to receive much-needed relief when it comes to health care and energy costs. It is my hope that with a Democratic-controlled Congress, we can make sure small businesses receive the tools they need to cope with these challenges, and move forward as the main job creators."

###