House Small Business Committee
The hearing will examine the SBA's implementation of Section 1661 of the National Defense Authorization Act of 2013. The hearing will be web-streamed live HERE.
Chairman Richard Hanna ( R-NY)
Witnesses and Testimony:
- Testifying on behalf of the Small Business Value Added Reseller Consortium
- Testifying on behalf of the American Institute of Architects
The Road Ahead: Small Businesses and the Need for a Long-Term Surface Transportation Reauthorization
On Wednesday, June 3, 2015 at 11:00 A.M. the Committee on Small Business held a hearing titled, The Road Ahead: Small Businesses and the Need for a Long-Term Surface Transportation Reauthorization. The hearing will be held in Room 2360 of the Rayburn House Office Building. The hearing will be webstreamed live HERE.
The purpose of the hearing is examine small firm participation in the surface transportation construction industry.
- Opening Statement
Witnesses and Testimony:
- Testifying on behalf of the National Stone, Sand and Gravel Association
- Testifying on behalf of the National Equipment Distributors
Chabot Statement on WOTUS and EPA Overreach
WASHINGTON - Today, the Obama Administration’s Environmental Protection Agency (EPA) is acting against bipartisan, bicameral concerns by moving ahead with a sweeping new rule to redefine what are considered to be “waters of the United States” under the Clean Water Act. The new rule gives the EPA power to regulate everything from ponds and streams to even backyard puddles.
In response to these actions, Small Business Committee Chairman Steve Chabot (R-OH) issued the following statement:
“Our Committee focuses a lot of energy on reducing unnecessary burdens faced by small businesses, but few rules are as far-reaching and as threatening as this latest EPA power grab. The impact of this rule will be felt most by family businesses and farmers that will have to sort through a bureaucratic mess and deal with its new costs and liabilities. What is just as troubling is the top down, Washington-knows-best approach that the Administration used to force this on the American people. We will fight this overreach and continue working to reduce the burdens faced by America’s families and small businesses.”
Over the past year, the Committee has previously examined the negative impact that this rule would have on small businesses and identified significant problems with rule and the rulemaking process. Most recently, Chairman Chabot sent a letter urging the Office of Management and Budget to return the rule the EPA and the Army Corps of Engineers for reconsideration. A previous letter to the EPA Administrator and Assistant Secretary of the Army outlined the Committee’s findings and urged withdrawal of the rule last year, and in May of 2014, the Committee held a hearing with small businesses to highlight these concerns. In July, the Committee hosted the EPA Deputy Administrator for another hearing on the matter, and in November of 2014, the Committee filed formal comments on the proposed rule, to again voice the concerns of America’s small business community.
Chabot, Small Business Committee Members Introduce Veterans Entrepreneurship Act of 2015
WASHINGTON – Today, House Small Business Committee Chairman Steve Chabot (R-OH) joined Reps. Hanna (R-NY), Bost (R-IL), Knight (R-CA), Curbelo (R-FL), Gibson (R-NY), and Rice (R-SC) to introduce the Veterans Entrepreneurship Act of 2015 (H.R. 2499), a bill to encourage and equip veterans in starting their own small businesses by removing barriers to capital.
“Our veterans are as entrepreneurial minded as anyone else in the world,” said Chabot. “Think about all that’s required to launch a new business: strategic planning, tactical expertise, dogged perseverance, and the ability to adjust plans to overcome new challenges at a moment’s notice. This is the American warfighter. Making sure they can access the resources needed to start their own business and build up the communities they’ve protected will do more than just create jobs – it will help them successfully transition into civilian life.”
There are over 21 million veterans living in the United States. Sadly, the unemployment rate among those that have served in active duty since September 2001 is substantially higher than the national average.
The Veteran Entrepreneurship Act seeks to address this reality by making it easier for a veteran or spouse of a veteran to obtain the private capital needed to start a business. The legislation does this by waiving the upfront guarantee fee for a Small Business Administration 7(a) express loan – all at no cost to the taxpayer.
The bill has received praise from lenders and veterans alike:
"As a lender, a veteran, and an Air Force Academy graduate, helping veterans make a life for themselves and their families once they return home from service is very personal to me. With more veterans returning to American soil, it is essential we do everything we can to bring down barriers to obtaining access to capital as they come back from doing everything they can to protect our country. Waiving fees for veteran 7(a) borrowers encourages them to open small businesses, create jobs, and boost the economy.”
-Rich Bradshaw, President of Specialized Lending at United Community Bank
"The 7(a) lending industry feels compelled to be part of the answer to help the SBA loan programs become more accessible to our veterans. NAGGL applauds Chairman Chabot and members of the Small Business Committee for introducing H.R. 2499 to help improve the lives of our nation's heroes."
-Tony Wilkinson, President & CEO of the National Association of Government Guaranteed Lenders
On Wednesday, May 20, 2015 at 10:00 A.M. the Committee on Small Business will hold a hearing titled, Across Town, Across Oceans: Expanding the Role of Small Business in Global Commerce. The hearing will be held in Room 2360 of the Rayburn House Office Building. The hearing will be webstreamed live HERE.
The purpose of the hearing is to
Chairman Steve Chabot (R-OH)
Witnesses and Testimony:
Chabot: TPA about "more opportunity for all Americans"
WASHINGTON--Moments ago, Chairman Steve Chabot (R-OH) made the following opening statement in the Small Business Committee's hearing entitled, "Across Town, Across Oceans: Expanding the Role of Small Business in Global Commerce:
"This hearing will come to order. Thank you all for joining us today for this timely and important discussion on trade.
"Very often this Committee discusses ways to grow the economy; increase the number of jobs being created; and sell more goods stamped “Made in the U.S.A.” All of these goals would help the American workforce. And all of these goals are attainable with trade.
"Simply put, trade means opportunity for small business. After all, 95 percent of the world’s consumers live outside of our borders. Yet, of the 28 million small businesses in America only 1 percent sell their goods internationally.
"If we tear down trade barriers, we can make it easier for small business to participate in the global marketplace and unleash our nation’s most powerful economic force. One of the barriers facing small businesses looking to export is confusion about how to even do it, and a maze of federal resources only to add to the confusion. The Committee recognizes that challenge and is working on legislative solutions to better coordinate federal resources so they are more efficient, streamlined, and better able to help businesses navigate the export process.
"Beyond that we need better trade agreements. Currently, we only have Free Trade Agreements with 20 countries and 47 percent of the goods exported from the United States went to those countries last year. Better trade agreements mean small businesses will be able to access new international customers and offer their products more easily and at a lower cost than ever before. It means that more products will be built and sold. When that happens, jobs care created, wages are lifted, and more opportunity is available to all.
"That’s really what’s on the table with this debate: more opportunity for all Americans. We cannot get stronger trade agreements like TPP and T-TIP, without Trade Promotion Authority (TPA). Without TPA, American workers will be competing under the same unfair rules they do today. It will be the status quo. With TPA, we can create trade agreements that will level the playing field. We can remove barriers put up by foreign nations to make it more difficult for American business to sell their products.
"Put an American worker against anyone in the world and I’ll take that bet every day of the week and twice on Sunday. But we can’t get there without TPA.
"Trade is also an opportunity to spread American values of economic freedom and individual liberty—freedoms we understand as second nature. Without TPA—and subsequently, TPP—other nations will dictate the rules of the new economy – nations that do not respect the rule of law or the rights of the individual.
"Trade is not a choice or luxury in our modern world. It is a necessity. It is the cornerstone of a strong, 21st Century economy.
"Today, we will hear from small businesses who are directly impacted by whether we move forward on TPA and important trade agreements OR whether we bury our heads in the sand and wait, while China shapes the contours of the global marketplace.
"Thanks again to all of our witnesses, and I now yield to the Ranking Member for opening remarks."
Small Business Subcommittee Examines SBA Capital Access Programs
WASHINGTON – Today, the Small Business Subcommittee on Economic Growth, Tax, and Capital Access held a hearing to examine one of the greatest impediments to growth for any small business: access to capital.
The hearing included industry witnesses from several Small Business Administration programs, who each shared their thoughts on how they can improve their respective programs. After the hearing, Subcommittee Chairman Tom Rice (R-SC) said:
“We cannot have a strong country without a strong economy, and for small businesses, access to capital is often the deciding factor if it will expand or close its doors. We must make sure the entrepreneurs and small businesses that employ half of America’s workforce have access to the capital they need to operate their business.”
Full Committee Chairman Steve Chabot (R-OH) issued the following statement:
“The programs Chairman Rice and the subcommittee examined this morning play an important role in our economy, bridging the capital gap for many small businesses every day. We must continue to make sure these programs are efficient and effective so that they are able to help small businesses do what they do best: create jobs.”
Brett Palmer, a witness testifying on behalf of the Small Business Investors Alliance, applauded Members of the Committee for introducing H.R. 1023, legislation to strengthen the Small Business Investment Company Program. He then called on Congress to move this bipartisan bill forward, emphasizing that doing so would increase the amount of private funds available to small firms by roughly $750 million.
Rick Bradshaw, another witness testifying on behalf of the National Association of Government Guaranteed lenders (NAGGL), encouraged the Committee to work on solutions that could help SBA loan programs become more accessible to veterans and other underserved markets.
Testifying on behalf of the National Association of Development Companies (NADCO) was Barbara Vohryzek, who agreed with the Small Business Committee’s goal to ensure “American small businesses have the access to capital necessary to grow, and in doing so, help their local communities flourish.”
Chabot Praises Passage of NDAA and Small Business Contracting Reforms
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-OH) today applauded the passage of H.R. 1735, the National Defense Authorization Act for 2016 (NDAA), which included a number of Small Business Committee legislative proposals to improve the federal contracting process.
Many of these provisions were successfully marked up by the Committee on Small Business on March 25, 2015. In April, Chairman Chabot, along with several other Small Business Committee Members including Rep. Carlos Curbelo (R-FL) and Rep. Cresent Hardy (R-NV), testified before the Armed Services Committee in support of these contracting reforms aimed at increasing small business participation rates. A large portion of those proposals were included in the Committee’s legislation. Chairman Chabot then testified before the Committee on Rules in favor of including the remaining provisions, which he and Rep. Bost spoke in favor of during floor consideration of the bill. All of the provisions were ultimately adopted.
“Small businesses are vital to our industrial base and this bill makes sure they have the opportunity to meet our national security needs,” said Chabot. “I want to thank Chairman Thornberry for his tireless effort in assembling this year’s National Defense Authorization Act, and for including these common sense contracting reforms. I look forward to working with him and our Senate counterparts to ensure America’s small businesses have greater opportunity to compete for federal contracts, because when they do, it improves quality, reduces costs, and ensures we have a robust industrial base supporting our military.”
Versions of the following bills were included in the NDAA:
As passed by the House, the NDAA increases opportunities for small businesses in numerous ways in order to increase competition, innovation and job creation. Highlights include:
- Increasing transparency into the health of the small business technological and industrial base;
- Holding agencies accountable for subcontracting opportunities;
- Relieving regulatory burdens on service contractors;
- Making it easier for small businesses to team and joint venture for large contracts;
- Cracking down on contract bundling and consolidation;
- Ensuring that size standards are properly created and implemented;
- Providing small business advocates with necessary training;
- Restricting the misuse of reverse auctions; and
- Adding a small business representative to the Federal Acquisition Council.
Further details on the NDAA can be found here.
The purpose of the hearing is to examine the rise of peer-to-peer lending platforms that seek to satisfy that seek the demand for debt capital that is currently not being met by banks and other conventional lenders.
Chairman Steve Chabot (R-OH)
Witnesses and Testimony:
Chabot Urges Administration to Return Waters of the United States Rule to EPA and the Corps
Small Business Committee Reminds OMB of Impact on Small Businesses; Regulatory Compliance Requirements
WASHINGTON--Today, Small Business Committee Chairman Steve Chabot (R-OH) sent a letter urging the Office of Management and Budget to return the rule defining the “waters of the United States” under the Clean Water Act to the Environmental Protection Agency and the Army Corps of Engineers for reconsideration.
In his letter, Chabot pointed out that the final rule, which gives the government regulatory authority over bodies of water as small as streams and puddles on private property, had been submitted “after taking a mere five months to review over one million public comments, many describing the concerns of small business, which were submitted to the agencies on the proposed rule.”
Chabot continued, “While the agencies have stated that changes were made to the draft final rule in response to concerns raised during the comment period, the definition and the process by which it was developed are so flawed that the defects cannot be cured without reissuing a new proposed rule after fully complying with the requirements of the Regulatory Flexibility Act (RFA).”
The letter can be viewed in its entirety here.
The Small Business Committee has previously examined the negative impact that this rule would have on small businesses. An initial letter to the EPA Administrator outlined the Committee’s findings and urged withdrawal of the rule last year, and in May of 2014, the Committee held a hearing with small businesses to highlight these concerns. In July, the Committee hosted the EPA Deputy Administrator for another hearing on the matter, and in November, the Committee filed formal comments on the proposed rule, to again voice the concerns of America’s small business community.
The letter was sent after the House passed H.R. 1732, the Regulatory Integrity Protection Act on Tuesday evening. H.R. 1732 is a legislative solution to the rule that has already been met with the threat of a presidential veto.
Bridging the Small Business Capital Gap: Peer-to-Peer Lending
WASHINGTON -- During today’s House Small Business Committee hearing, “Bridging the Small Business Capital Gap: Peer-to-Peer Lending” led by Chairman Steve Chabot (R-OH), members heard from peer-to-peer lending experts whose testimonies shed light on emerging lending techniques that could expand small business’ access to capital.
“While access to capital has always been a concern for small firms, as we all know, the Great Recession and recent reforms to our financial markets have made access to capital even more difficult,” said Chabot. “However, recently there has also been an influx of alternative lending options to assist small businesses in getting the financing they so desperately need.”
Zachary Green, CEO and Founder of MN8 Foxfire based in Cincinnati, Ohio, testified before the Committee about his success with peer-to-peer lending, which helped him grow and save his company specializing in firefighting and safety technology. “Almost every entrepreneur I know has the same recurring nightmare: running out of money,” Green said. “In under 36 hours, Foxfire received the money we needed. This is the perfect example of how the free market can act faster than larger, traditional institutions and keep the American Dream alive.”
Also testifying today was Sam Hodges, Co-Founder and Managing Director of Funding Circle USA, who emphasized the need for more affordable long-term financing solutions. “Short durations and very high effective rates drive many small businesses that use such credit products into downward cycles of re-borrowing in which they take out more and more debt to roll over their repayment obligations,” Hodges said.
The Committee also heard from Rajkamal Iyer, an Associate Professor of Finance at MIT’s Sloan School of Management, who has conducted studies on peer-to-peer lending trends. “One of the big problems of credit markets in general is screening for the underlying creditworthiness of borrowers,” Iyer said. “The interest rate set by [non-expert individual] lenders predicts default 45 percent more accurately than the borrower’s credit score.”
Chairman Chabot recognized the need to continue examining capital alternatives to traditional loans that are better suited for small businesses.
For full witness testimonies and footage of today’s hearing, click here.
CINCINNATI—Small Business Committee Chairman Steve Chabot (R-OH) kicked off National Small Business Week today with a full slate of visits to Cincinnati-area small businesses.
“Small business week is a great time to pay closer attention not only to the issues that face small businesses, but to the inspiration that keeps them going,” Chabot said as he toured businesses ranging from a heating and air company to a veterinarian’s office. Chabot told employees at JBM Packaging in Lebanon, Ohio: "As Chairman of the Small Business Committee, I’m working every day to find out how I can make life easier for you. Typically, it’s just getting Washington out of the way.”
Chabot, members of the Small Business Committee, and other members of Congress highlighting Small Business Week can be followed on the Small Business Committee’s Storify blog and on social media using the hashtag #SBW2015.
By Presidential Proclamation, Small Business Week is May 4-8, 2015.
Small Business Contracting Reforms Included in NDAA
WASHINGTON, DC – Small Business Committee Chairman Steve Chabot (R-OH) today applauded the House Armed Services Committee for incorporating small business contracting reforms into H.R. 1735, the National Defense Authorization Act for 2016 (NDAA).
Last month Chairman Chabot, along with several other Small Business Committee Members including Rep. Carlos Curbelo (R-FL) and Rep. Cresent Hardy (R-NV), testified before the Armed Services Committee in support of a number of contracting reforms aimed at increasing small business participation rates.
“I want to thank Chairman Thornberry for his tireless effort in assembling this year’s National Defense Authorization Act, and for including commonsense small business contracting reforms into the bill,” said Chairman Chabot. “We have a great working relationship with the Chairman and his staff, and I look forward to continue working with him to ensure our small business have the opportunity to compete for federal contracts, because when they do, it improves quality, reduces costs, and ensures we have a robust industrial base supporting our military.”
Versions of the following bills were included in the H.R. 1735:
The Armed Services Committee passed H.R. 1735 by a vote of 60-2. Further details of the bill can be found here.
Small Business Roundtable on Potential Joint Employer Standard
WASHINGTON - Today, Small Business Committee Members hosted industry representatives for a roundtable discussion on the impact that the National Labor Relations Board’s (NLRB) potential new Joint Employer Standard would have on American workers and small businesses.
For the last 30 years, the NLRB has determined two businesses to be a joint employer if they share “direct and immediate control over employment matters.” But just last year, the NLRB General Counsel filed a brief in a pending case urging the Board to abandon this standard for a radically different approach.
“It is clear from the discussion this morning that a broader joint employer standard will have a chilling effect on small businesses,” said Chairman Hardy. “The NLRB’s actions could have devastating impacts on business-to-business relationships, which for many small firms are critical to their operation. It is already affecting decisions about whether to hire a new employee or open a new business, and if a new standard is adopted it will hit small businesses, particularly franchisees and contractors, the hardest. For a large firm, this new standard will impact how they do business. For a small guy, it will determine if they do business.”
“All small businesses are under attack with this rule,” said Small Business Committee Chairman Steve Chabot. “In typical Washington fashion, the NLRB is creating a bureaucratic solution for a problem that doesn’t exist. I commend Chairman Hardy for his leadership on this issue and for his relentless energy in representing the workers and small businesses in Nevada and throughout our country.”
Patent Trolls: A Big Problem for Small Business
WASHINGTON, DC -- Small Business Committee Chairman Steve Chabot (R-OH) today hosted entrepreneurs and industry representatives for a discussion on the impact that patent trolls and frivolous patent litigation have on small businesses and the American workforce.
Following the discussion, Chairman Chabot issued the following statement:
“Today, the message was loud and clear: patent trolls are a big issue for small business.
Patent trolls are increasingly targeting small business because they know small firms don’t have large legal departments to defend themselves. And it’s not just technology companies that are being targeted, it is any business that wants to operate in the modern economy. Retailers that want to conduct sales online, restaurants that want to offer their customers wi-fi, or any enterprise that sends an email with a hyperlink are potential targets.
We need a strong patent system, but we must not let common sense be lost in this debate. When a company can be forced into bankruptcy because it chooses to defend its innocence rather than give into these bad actors, something needs to change.
I’m glad that the House Committees on Judiciary and Energy and Commerce are actively crafting solutions to address this issue and I look forwarding to working with those involved to ensure that any solutions strongly protect American small businesses.”
The purpose of the hearing is to examine the current state of Cyber-Security for small firms and steps that can strengthen their efforts in information protection.
Chairman Steve Chabot (R-OH)
Witnesses and Testimony:
Small Business, Big Threat: Protecting Small Businesses from Cyber Attacks
WASHINGTON—Cybersecurity experts, small business, and financial institution leaders addressed the growing threat of cyber-crimes against American small businesses at today’s hearing entitled, “Small Business, Big Threat: Protecting Small Businesses from Cyber Attacks.”
“The American government, American businesses, and Americans themselves are attacked over the Internet on a daily basis,” Chairman Steve Chabot (R-OH) said in his opening statement. “Sometimes they know, sometimes they don’t. These attacks come from criminal syndicates, “hacktivists,” and foreign nations. They’re after intellectual property, bank accounts, Social Security numbers, and anything else that can be used for financial gain or a competitive edge. But the majority of cyber-attacks happen at small businesses. In fact, 71 percent of cyber-attacks occur at businesses with fewer than 100 employees.”
Among those who testified at the hearing was Steve Grobman, Chief Technology Officer for Intel Security Group, saying, “Over the past decade, the attacker type has evolved from recreational “hackers” with limited capabilities to organized crime and state sponsored actors employing extensive resources and highly skilled personnel.”
The Committee also heard from Todd McCracken, President of the National Small Business Association, who discussed the fact that small companies currently have fewer resources to address cyber attacks. “Many small companies are not in a position to have a dedicated IT department, and many either outsource IT functions or assign such duties to an employee with other responsibilities—often the owner him/herself. In fact, the number of business owners who personally handle IT support appears to be on the rise,” McCracken said.
Dan Berger, President and CEO of the National Association of Federal Credit Unions, who also testified said, “Data security breaches are more than just an inconvenience to consumers as they wait for their plastic cards to be reissued,” Berger said. “Breaches often result in compromised card information leading to fraud losses, unnecessarily damaged credit ratings, and even identity theft.”
“This isn’t the Internet of 1995, when most Americans simply got online to check e-mail,” Chabot said. “This technology – and our behavior with it – is the underpinning of our modern economy and the foundation for our future. This is why we must address cybersecurity now, so that as a country and as a leader in the global marketplace, we can operate without fear of attack.”
Chairman Chabot shared concern for the negative impacts of mounting cybersecurity pressures against the small business landscape and expressed the need to proactively combat these issues moving forward.
Today’s hearing comes as the House considers H.R. 1560, the Protecting Cyber Networks Act, and H.R. 1731, the National Cybersecurity Protection Advancement Act.
For footage and testimony from today’s hearing, click here.
15 Things That Remind You How Long It's Been
Since The Last Major Tax Reform
The tax code hasn't been overhauled since 1986 under President Ronald Reagan. That was nearly 30 years ago!
A lot has changed since then. See for yourself with these 1986 throwbacks.
1. The Legend of Zelda was released by Nintendo.
The Halo of its generation.
2. Ferris Bueller took the day off.
Hooky at its finest.
3. The Chicago Bears won the Super Bowl.
4. Robert Palmer topped the charts with
Addicted to Love. And vinyl backdrops with clouds were really cool.
5. Pee Wee's Playhouse premiered. Gone, but never, ever, ever, forgotten.
6. Mike Tyson won his first-ever boxing title.
More than ten years before he demonstrated his ear biting technique!
7. Lady Gaga was born.
8. Top Gun was the highest grossing film of the year.
"Sorry, Goose, but it's time to buzz a tower."
9. Fujifilm released the first disposable camera.
A classic staple for any fanny pack.
10. Richard Simmons released an aerobic
film for senior citizens.
11. McDonald's advertising took a slightly
Because what purple blob with eyebrows doesn't appeal to consumers?
12. Tang was consumed by the gallons.
Oh, how we miss this sweet, sweet nectar.
13. High fashion looked like this.
Shoulder pads and denim and leg warmers - oh my!
14. Cool Ranch Doritos made their debut.
A total game changer!
15. Minority Leader Harry Reid was elected to his
first term in the U.S. Senate.
Guys, this was a really, really, really, really long time ago.
As you can see, time has gotten away from us. Reminiscing about these 1986 highlights can be fun,
but operating with a tax code of that era is unfair to businesses and individuals, alike. And because
85 percent of small businesses file and pay taxes as individuals, any conversation about tax reform
must not leave Main Street behind. The time for comprehensive tax reform is long overdue.
The purpose of the hearing is to examine the need for and potential economic benefits of comprehensive tax reform.
Chairman Steve (R-OH)
Witnesses and Testimony:
- Testifying on behalf of the National Federation of Independent Business
- Testifying on behalf of the S Corporation Association of America
Tax Day at the Small Business Committee:
Main Street Needs a Fairer, Flatter, and Simpler Tax Code
WASHINGTON—In today’s hearing, “Tax Reform: Ensuring that Main Street Isn’t Left Behind,” Small Business Committee members heard from real American small business operators, on Tax Day, about the need for fair, simple, and comprehensive tax reform for the survival and success of millions of small businesses and local communities.
“America’s 28 million small business owners, taxpayers themselves, repeatedly complain that the uncertainty of the tax code has made it difficult to plan or grow their companies,” Chairman Steve Chabot (R-OH) said in his opening statement. “We’ve held hearings, met with trade associations, and most importantly, we’ve talked with our constituents back home. The message we hear is always the same: we’ve got to make the tax code simpler, flatter, and fairer.”
Chairman Chabot (R-OH) introduced his constituent Scott Lipps of Sleep Tite Mattress Factory & Showroom, a family owned and operated business in Franklin, Ohio. “The small business owner works in the community, hires in the community and lives in the community,” Mr. Lipps explained. “To serve our employees and our community, we must have lower tax rates, fewer regulations, and a less confusing, less complex tax code.”
Dan McGregor of McGregor Metalworking in Springfield, Ohio told the Committee how his company has grown from a family investment in 1965 to a firm with a total of 375 employees fifty years later. Mr. McGregor walked the Committee through his company’s history as a C corporation and an S corporation, making the point that tax reform that addresses both kinds of small businesses is crucial to keeping the entrepreneurial spirit alive.
“There is no doubt that we must reform our corporate tax structure; we have the highest corporate income rates in the world,” Chairman Chabot said. “But, as our Committee has identified numerous times before—our small businesses are the backbone of our economy. They create over 60 percent of the new jobs in this country and represent over 99 percent of all employers in the United States. Because so many of these enterprises file and pay their taxes on their individual return, we cannot and must not ignore them as we move forward with any tax reform debate.”
Chairman Chabot assured witnesses that the Small Business Committee will continue to be an active voice for fair and comprehensive tax reform in the 114th Congress.
For footage and testimony from today’s hearing, click here.