[Congressional Record Volume 142, Number 14 (Thursday, February 1, 1996)]
[Extensions of Remarks]
[Pages E126-E127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       HONORING DR. RON GALLOWAY

                                 ______


                          HON. CHARLIE NORWOOD

                               of georgia

                    in the house of representatives

                      Wednesday, January 31, 1996

  Mr. NORWOOD. Mr. Speaker, I am pleased to bring to your attention the 
distinguished career of Dr. Ronald Frost Galloway. Dr. Galloway is 
retiring today from University Hospital in Augusta, GA. He has 
practiced at University Hospital since 1963, where he established the 
first cardiac surgical program at the hospital in 1974. He has served 
on the Richmond County Hospital Authority for 7 years helping shape 
what University Hospital is today.
  Mr. Speaker, Dr. Galloway has enhanced the quality of life for the 
people of the Augusta community for many years. He is a man of 
uncompromising integrity, a truly remarkable physician, and a 
gentleman. I am pleased to honor him today before the House of 
Representatives.

[[Page E127]]


                             SMALL BUSINESS

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Wednesday, January 31, 1996

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, January 24, 1996 into the Congressional Record:

                  Small Business: Creating Opportunity

       Small businesses are the backbone of the American economy. 
     They generate a majority of our new jobs and provide many 
     important technological innovations. They also play a vital 
     role in satisfying the country's need for opportunity and 
     choice. For years, small businesses have repeatedly led this 
     country out of troubled economic times and into prosperity.
       There are over 5.8 million small businesses in the U.S. 
     today, employing more than 92 million private sector workers. 
     Small businesses account for 50% of the nation's sales, 50% 
     of private sector output, 53% of U.S. employment, and 99.7% 
     of all employers. There are over 129,000 small businesses in 
     Indiana, employing over 2.1 million people. By any measure, 
     small businesses are a key source of growth and dynamism in 
     our economy.


                         white house conference

       The small business community, however, does face numerous 
     challenges in the national and global marketplaces. Last 
     summer a bipartisan delegation of over 2,000 small business 
     men and women, including representatives from southern 
     Indiana, met in Washington to identify the key concerns of 
     America's entrepreneurs and develop specific recommendations 
     for maintaining and encouraging the economic viability of 
     small business.
       The White House Conference on Small Business made 60 
     recommendations, focussing on three critical areas: improving 
     access to capital; easing regulatory burdens; and making 
     investments in our workforce. Congress and the President took 
     some steps over the last year to address these concerns, but 
     more work needs to be done.


                           capital formation

       Access to capital is a critical problem for many small 
     businesses. More than two-thirds of all new firms begin with 
     less than $10,000 in total capital, much of it provided by 
     the owner, family members or friends. Once established, a 
     small firm must face interest rates on bank loans two or 
     three percentage points above the prime rate. The White House 
     Conference made several recommendations to improve access to 
     the capital needed to finance the survival and growth of 
     small businesses, and Congress has acted on some of those 
     proposals.
       Congress, with my support, approved the Small Business 
     Lending Enhancement Act which will allow SBA to increase 
     total loan volume at a lower cost to the taxpayers, and SBA 
     has acted independently to simplify the application process 
     for small businesses. Furthermore, federal bank regulators 
     have reduced regulation and paperwork burdens for small 
     national banks, and securities regulators have eased 
     registration and filing burdens for small business.
       Small business is also keenly interested in tax relief, 
     particularly relating to capital gains and estate taxes. I 
     agree that the federal government should encourage 
     investment, and have been supportive of carefully designed 
     efforts to increase savings and investment. I would expect to 
     support such changes again in the context of comprehensive, 
     fiscally responsible tax reform.


                           Regulatory relief

       Federal, state and local governments impose too many 
     requirements on the operation of businesses. The burdens 
     often include substantial paperwork and record-keeping 
     requirements. The White House Conference made several 
     recommendations for easing or eliminating federal 
     regulations, some of which have been acted upon and others of 
     which are under consideration in Congress.
       Congress, with my support, approved a measure to minimize 
     the paperwork burden for regulatory compliance. I have also 
     supported bills, approved by the House and pending in the 
     Senate, to impose a temporary moratorium on regulations; 
     require federal agencies to conduct risk assessment and cost-
     benefit analysis of federal regulations; permit small 
     businesses to challenge proposed federal rules in court; 
     require compensation for property owners adversely affected 
     by regulations; reform product liability laws; and change 
     federal procurement laws to increase government use of 
     commercial items.
       We need a commonsense regulatory system that works for 
     small businesses, not against them. The system should protect 
     health, safety and the environment without imposing 
     unacceptable or unreasonable costs on small business. 
     Regulations should recognize that the private sector is the 
     best engine for economic growth, respect the role of state 
     and local governments, and be effective, sensible and 
     understandable.


                          workforce investment

       As business technology has become more complex and the 
     world economy more competitive, the strength of the American 
     economy depends on the skills and training of our workforce. 
     Small business owners often tell me of the need to improve 
     the quality of education and access to skill training. The 
     White House Conference echoed these views.
       The task of preparing our workers falls on many of us: 
     parents, educators, businesses, and the public sector. The 
     federal government has a secondary, though, important role. 
     Congress, with my support, is currently reforming federal job 
     training efforts--streamlining various programs and giving 
     more flexibility to the states. I do not support, however, 
     the deep cuts in job training and school-to-work programs 
     favored by Speaker Gingrich.
       The White House Conference also focused attention on the 
     rising cost of providing workplace benefits, urging various 
     pension and health care reforms to ease these pressures. 
     Congress, with my support, approved a measure to reinstate 
     the 25% health insurance premium deduction for the self-
     employed and raise the deduction level to 30% in tax year 
     1996. I favor a 100% deduction. Congress is also debating 
     proposals to encourage greater retirement savings.


                               conclusion

       We Americans should try to help small businesses compete by 
     increasing their productivity--by increasing the quality and 
     quantity of capital their workers use, by improving their 
     employee skills through training, and by enhancing their 
     management skills. Ensuring that financing is available and 
     affordable will be critical to allowing small business to 
     achieve these goals. Their competitiveness will also be 
     improved by easing regulations. Small firms must also 
     continue to do what they do best--experiment with new 
     products and process innovations--if they are to hold their 
     important position at the leading edge of the American 
     economy.

                          ____________________