USA. Small business, tax cuts and economy dominate pre-election Congressional work period

USA Pre-Election Congressional

As Congress reconvenes on September 13 in advance of the mid-term elections, typical legislative business is likely to be complicated by substantial pre-election partisan posturing. Major agenda items include an NMMA-backed small business bill that languished before the recess over procedural concerns.  The Senate version of this (Landrieu-Baucus-Reid) legislation, H.R. 5297, includes an extension of the Small Business Administration Dealer Floorplan Financing Program (DFP) for three years, and would increase SBA loan caps for dealer floorplan financing to $5M, eliminate SBA fees and make other improvements that will enhance credit availability for floorplans and other business credit. The legislation also includes more than $12 Billion in Small Business Tax Relief, as well as an NMMA-backed Small Business Lending Fund that would make available $30B for small business lending. 

Part of the small business debate is likely to include an amendment to repeal new Sec. 1099 reporting requirements passed as part of the recent Health Care bill. Under the new law, companies are required to send a 1099 tax form to other businesses for all purchases over $600. NMMA strongly supports the repeal of this provision. The Senate is expected to take up this bill for floor votes on September 14. 

In addition, Congress will likely consider a broad range of Bush-era tax cuts set to expire at the end of the year. While the President would extend the cuts for those earning under $250,000, Republican leaders are calling for a two-year extension of all tax cuts. NMMA strongly supports the full extension of existing tax rates (read NMMA and partners’ letter to Congress here). Congress will also consider permanently extending and strengthening the Research and Development (R&D) Tax Credit, which NMMA also supports. Finally, President Obama’s recent call for $50 billion in transportation and infrastructure spending may receive some debate, but Republicans and some Democrats have come out strongly against the proposal, and it is unlikely to gain traction. Congress will adjourn October 8 and Members will return home to campaign