12/21/2005
by Jack Faris
As Jan. 1 nears, Americans are making New Year's resolutions to improve their lives, their finances, and, of course, their waistlines. For procrastinators who can't complete their lists, there's even a federal government Internet site that offers help.
While Washington's concern for the "resolution-challenged" may be welcomed by some, this is yet another sign that the nation's priorities aren't receiving their due attention. Among the site's resolutions are "eat right," "get fit," "reduce stress" and "save money"—all actions in which small-business owners would love to engage, were they not spending their time, capital and energy coping with excessive government regulation, red tape and the growing appetite for their tax dollars to fund such things as non-essential Internet sites.
Since lists are on everyone's minds these days, this is a good time to register a few items about the small-business sector's contributions to the nation's economic well-being. First, note that small businesses represent 99.7 percent of all employers, providing jobs for half of the private-sector work force. Then, jot down that these less-than-mega enterprises have generated 60 percent to 80 percent of the net-new jobs in this country over the past decade, plus churning out half of the private, gross domestic product.
Imagine doing all that while shackled with government's fickle mandates and rules. It doesn't require much creative thinking to realize that reducing the burden on these entrepreneurs would produce more jobs, greater productivity and an extra boost to the economy.
Here's an idea: New Year's resolutions for Congress. First, resolve to begin 2006 by addressing the most severe problem facing small-business owners—the cost and availability of health insurance. A good start would be for senators to resolve to pass legislation to create Small-Business Health Plans—legislation that has cleared the House of Representatives several times and already has the president's support.
Resolution Two: Enact tax relief. This one isn't so simple, but it's achievable by reducing rates, simplifying tax laws, and increasing small firms' expensing limits. And once Congress gets rolling, repeal both the death tax and the alternative minimum tax.
Resolution Three: Reduce regulation. Firms with fewer than 20 employees face almost $7,000 per worker per year in regulatory costs brought about by everything from environmental rules to occupational measures, and even regulations that stifle business fax communications.
Resolution Four: Reform the legal system. Frivolous lawsuits pose a much greater danger to the economic foundation of America than most of the issues exploited to rob businesses that are unable to protect themselves. Obesity lawsuits, for example, are just another avenue trial attorneys have found to enrich themselves.
Resolution Five: Work more, play less. One glance at the 2006 calendars of the House and Senate reveals that they plan to spend a lot of time away from the nation's capital in the coming year. That is likely due to one item most members of Congress have at the top of their New Year's resolutions: get reelected on Nov. 7.
If Congress adopts and keeps any of these resolutions, small business would be impressed. Until that happens, small-business owners are likely to spend far less of their time worrying about resolutions and much more of their time working hard at growing their businesses, creating jobs and strengthening our economy.
Small-Business Focus is a bimonthly column written by the National Federation of Independent Business President and CEO Jack Faris. NFIB, the nation's largest small-business advocacy organization, represents the consensus views of over 600,000 members across the country with offices in Washington, D.C. and all 50 state capitals.
