An Open Letter on The Small Business Jobs Act (H.R. 5297)

To Members of the United States Senate:

On behalf of the Small Business & Entrepreneurship Council (SBE Council), I wish to express our deep disappointment in the Small Business Jobs Act (HR 5297).  The legislation does not offer the kind of substantive and immediate measures that will help small business owners survive and grow in the weak economic climate.

In addition, we are very disappointed that amendments were not allowed to the legislation, which could have strengthened the initiative while addressing some deep concerns that small business owners have about new burdens (such as the expanded 1099 reporting mandate) that impose more costs on our sector and the economy at large.

In order for certain provisions in the legislation to be effective in the current economic climate - for example, expensing and the self-employed tax measure - these must be made permanent, or at least be of longer duration.  The holding period on the capital gains tax provision buffers the effectiveness of the zero rate.  Lastly, there is no guarantee that capital provided by the $30 billion lending fund will make its way to small businesses and at a pace that is needed to address immediate needs.

In essence, previous legislation passed by the Congress -- tax increases and costs imposed by the new health care law, as well as various bills the Congress is considering that will further increase costs -- have already done their damage.  Small businesses are hesitant about investing and hiring.  They continue to struggle with weak revenues, and they remain gloomy about the economy.

Legislative measures that will help small businesses includes tax relief in the form of making existing rates permanent, a time-out on various legislative initiatives and regulatory efforts that will drive their costs higher, and an end to excessive spending that is adding to our debt and eroding economic stability.

We urge you to consider stronger measures to help small business owners, as the Small Business Jobs Act will not get the job done for our nation's entrepreneurs.

Sincerely,

Karen Kerrigan, President & CEO