[Congressional Record Volume 143, Number 75 (Wednesday, June 4, 1997)]
[Extensions of Remarks]
[Pages E1113-E1114]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                LET'S HELP AND NOT HINDER SMALL BUSINESS

                                 ______
                                 

                          HON. JOSEPH R. PITTS

                            of pennsylvania

                    in the house of representatives

                        Wednesday, June 4, 1997

  Mr. PITTS. Mr. Speaker, during Small Business Week, I stand here to 
pay tribute to the engines of our economy--those small businesses 
across the country which provide goods and services--and most 
importantly jobs--to the American people.
  I am here today to implore my colleagues to recognize how small 
businesses are improving our economy.
  And I implore my colleagues to recognize that these job creators are 
being hassled and regulated by a Federal Government which has no regard 
for how much small businesses drive this Nation.
  Mr. Speaker, small businesses account for 99.7 percent of the 
Nation's employers.
  They employ 53 percent of the private work force, and they contribute 
47 percent of all sales in the country.
  In fact, small businesses are responsible for 50 percent of the 
private GDP of this country.
  Yet, the small business owners of this Nation face a tax system and 
regulatory burdens which limit growth and discourage development.
  If Government is meant to be the servant of the people, our current 
tax and regulatory systems are certainly not assisting our Nation's 
small businesses.
  Even with the legislation Congress has passed to help small business 
get out from under the thumb of the Federal Government, more assaults 
are now being urged by the Clinton administration.
  With such economic and growth potential within small businesses 
across this country, we should be doing all we can to assist them.
  We must act as their servants--instead of hindering their progress.
  They need relief from encumbering taxes and from job-killing 
regulation.
  For starters--we could repeal an unfair estate tax which targets the 
very families and

[[Page E1114]]

small businesses which are creating employment in their communities.
  Because of this tax, millions of small business owners are in 
jeopardy of losing the businesses which they have spent their entire 
lives building.
  Under this oppressive IRS Code, someone can work a lifetime--and the 
moment they die, so could all the jobs of the people who work for them.
  Mr. Speaker, Ron Hill of Lancaster, PA is an entrepreneur.
  He has spent a lifetime building a healthy business and generating 
jobs.
  The state of his company has a direct effect on 35 families.
  Is it justifiable that individuals like Ron Hill must worry that when 
he dies--his family won't be able to pay the hefty estate tax--and so 
the jobs of his employees will be in jeopardy.
  For too long, the estate tax--in order to raise just 1 percent of 
total Federal revenues--has been burdening the people of this country 
with the increased cost of capital and stifled economic growth and 
higher interest rates.
  Even though our budget agreement takes a step in the right direction 
by raising the ceiling on the taxed amount--we should not end there.
  If the tax were repealed this year, the Nation's economy would 
increase by as much as $100 billion over the next 9 years.
  This extra capital would also allow an average of 145,000 additional 
new jobs per year to be created.
  Personal income would rise above current projections by an average of 
$8 billion per year.
  Most importantly, small business owners in this country would be 
encouraged, and not discouraged, as they work hard to pass on an 
enterprise of value to their children.
  We must not stop until this tax is repealed.
  Another effort that the Federal Government can undertake to assist 
small businesses is to keep damaging and unnecessary regulations off 
their backs.
  In November of last year, the Environmental Protection Agency 
proposed harsh new national Air Quality Standards.

  Since then, there has been significant outcry over these regulations.
  While the EPA is required to review standards every 5 years, they are 
not required to change them without sufficient proof of the benefit to 
public health.
  It would be extremely difficult for the EPA to justify an additional 
$10 billion plus annual price tag for the American people if these new 
regulations go into effect.
  This costly unfunded mandate will force many small businesses to 
close their doors--small businesses like dry cleaners, bakeries, and 
printers.
  Mr. Speaker, I recently held a forum for small business leaders of 
the 16th Congressional District.
  Small business representatives such as Carol Hess of Lancaster Labs, 
Andy Cuiffetelli of Custom Casings, and Howard Winey of Martin 
Limestone--each can tell a story of hardship caused to their growing 
businesses because of these regulations.
  Not only do these companies deal with multiple permits from the 
Pennsylvania and the Federal Environmental Departments, but expanded 
regulations mean businesses spend time trying to bend over backwards to 
comply with Federal regulations.
  This translates into an entire year's worth of capital spending which 
would otherwise go to improving quality and making businesses more 
competitive.
  In the words of Howard Winey of Martin Limestone, ``ours is a 
progressive area and one of the only areas of Pennsylvania that has 
sustained growth. If our growth is inhibited, everyone suffers.''
  We cannot afford to do this to our communities.
  Yes, we must all support enhancing the quality of life--but this 
regulation solves no legitimate public health hazard.
  These EPA regulations are bad science and bad for business.
  Another important workplace issue to small businesses is allowing 
small business owners to deduct 100 percent of their health insurance 
costs when they fill out their tax returns.
  Start-up and maintenance costs are far and above some of the toughest 
costs to overcome.
  It is patently unfair that large corporations can deduct 100 percent 
of their share of employees' health-care costs while the self-employed 
farmer or home business owner can only deduct 40. Even though last 
year's bill increased the deductibility to 80 percent by 2006, that is 
not good enough.
  Small business owners need a level playing field to assist their 
growth.
  Additionally Mr. Speaker, 14 million Americans now operate home-based 
businesses.
  Because of corporate downsizing, improvements in technology, and a 
desire to be close to family--individuals choose to work from home.
  Tax equity between those who work from home and those who rent office 
space--and can deduct the costs of renting--is a reasonable request and 
should be allowed.
  Mr. Speaker, I have listed just a few of the regulatory and tax 
relief measures which could go a long way in helping small businesses 
of this country to grow even faster and stronger than they are today.
  It is these businesses which carry a large portion of the load for 
our Nation's economy.
  We, here in Congress, have a responsibility to lighten their load--
and help them along the road to economic prosperity--for their 
businesses and for our communities.
  I salute the small business owners of America.
  We must pledge to work to ease their burden.
  I now yield back the balance of my time.

                          ____________________