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

For Immediate Release
January 4, 2007

CONTACT: Kate Davis, Susan Graham (202) 225-4038

Chairwoman Velázquez Promotes Fairness for Small Businesses
Start of 110th Congress marks new opportunity to provide relief to entrepreneurs

WASHINGTON - Today, with the start of the 110th Congress, Nydia M. Velázquez, Chairwoman of the House Small Business Committee, introduced two measures to address some of the pressing issues facing small businesses today - reducing the complexity of the tax code and increasing fairness for small firms.

"Our nation's small businesses have consistently fallen victim to unfair practices over the past several years, particularly when it comes to competing with their larger counterparts," Chairwoman Velázquez said. "As the Chair of the committee, simplifying the tax code and expanding fairness for entrepreneurs are priorities for the 110th Congress. The introduction of these two bills today is the first step in making sure progress is made for our small firms."

Among the biggest barriers facing entrepreneurs today is the rising complexity in the tax code as well as the many inequities in the code that leave them at a disadvantage to their competitors. Despite the nearly $2 trillion in tax cuts, small businesses have seen little relief and in many cases, these changes have exacerbated the inequities in the tax code. Reforms are needed to reduce the growing tax compliance burden while encouraging the growth and expansion of small businesses. In an effort to reverse these problems, Chairwoman Velázquez introduced H.R. 46, The Small Business Tax Fairness and Simplification Act of 2007. The legislation encompasses a number of areas including: helping home-based businesses reduce paperwork, ensuring that the tax code accurately reflects the modern operations of a business, and encouraging investment in small businesses. It will also provide greater flexibility for small business owners in filing their taxes, and stop the implementation of a rule that would place an unfair burden on small firms who perform government contracts. These straightforward changes will ensure that entrepreneurs can focus on growing and expanding their enterprises.

While the complexity of the tax code has weighed heavily on entrepreneurs for the past several years, they also have encountered less opportunity in regard to business finances. To address this, Chairwoman Velazquez introduced legislation to remove an antiquated barrier that has been in place for over five decades, which has prevented small firms from receiving returns on their business checking accounts. H.R. 41, The Business Checking Fairness Act of 2007 would grant entrepreneurs greater freedom over their finances. This legislation would ultimately provide much-needed relief to small businesses at a time when they are being hit with rising healthcare, energy and capital costs, while also enabling entrepreneurs to earn additional funds to grow their ventures.

The measure is supported by the National Federation of Independent Businesses (NFIB) and the Credit Union National Association (CUNA). The NFIB issued a letter stating, "Eighty-six percent of NFIB members support allowing business owners to earn interest on their business checking account balances… (we) extend our strong support for The Business Checking Fairness Act of 2007."

"When it comes to truly improving the environment for this nation's small businesses, and opening up opportunities, this is just the beginning," Chairwoman Velázquez said. "The bottom line here is that there is a great deal of work to be done to provide much-needed relief to entrepreneurs, and open doors to opportunities that will enable small businesses to move forward as the nation's main job creators. This package marks the start of that change, and a vital step in the right direction for small businesses, and the U.S. economy."

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