04/11/2008
State
Bills totaling more than $300 million in taxes introduced
The Alabama House Republican Caucus stepped up in defense of the business community this week when it adopted an official position opposing passage of House Bill 350 in its current form. The caucus voted unanimously against the measure during its weekly meeting, which was attended by NFIB/Alabama State Director Rosemary Elebash.
As written, HB 350, sponsored by Rep. Richard Lindsey (Centre), would levy approximately $100 million in new taxes on businesses operating in Alabama. In addition, a retroactive clause in the bill would change the law governing business taxes that have already been paid over the past several years.
An "official caucus position" binds each member of the group to vote against the bill's Budget Isolation Resolution (BIR), a measure that must be adopted in order for a bill to be considered prior to the passage of both state budgets. In addition, caucus members must vote as a group on all procedural votes but are not bound to vote together on final passage.
Because passage of the BIR requires a supermajority vote of the body, and Republicans comprise 43 of the 105 members of the House, the official caucus position should prevent the number of votes necessary for HB 350 to be considered, at least until House passage of the education budget.
The Business Associations Tax Coalition (BATC), of which NFIB is a founding member, is working together for a pro-business environment in the state, but while HB 350 is the fastest moving threat to Alabama's business community, it isn't the only threat.
A review of legislation filed so far during the 2008 Regular Session shows at least eight bills calling for more than $300 million in new business taxes. They are:
- HB 326 and HB 796 by Rep. John Knight (Montgomery)
- HB 455 by Rep. Terry Spicer (Elba)
- HB 118 and HB 232 by Rep. Patricia Todd (Birmingham)
- HB 577 by Rep. Marcel Black (Tuscumbia)
- HB 768 by Rep. Jeff McLaughlin (Guntersville)
- HB 350 by Rep. Lindsey
HB 144 by Rep. Jay Love (Montgomery) would allow small businesses to deduct from their taxes twice the amount they pay for health insurance premiums. Also, to encourage participation in the coverage plans, employees will be able to deduct twice the amount they contribute toward their portion of the premium. The NFIB-endorsed legislation would allow small businesses to provide quality, affordable health insurance to its employees while redirecting revenues toward growth and expansion.
So far, the House Education Appropriations Committee has denied the small business tax deduction legislation a hearing or a vote, while, at the same time, new business tax bills such as HB 350 were prioritized for quick passage and consideration on the House floor.
Call your House member on Monday at 334-242-7600 and asked them to oppose HB 350 in its current form.
Senate Committee passes legislation to provide legislators with health insurance
The Senate Finance and Taxation-General Fund Committee passed Senate Bill 520 by Sen. E. B. McClain (Birmingham), which would give legislators free state-sponsored health insurance and enable them to buy into the state system for their families. The fiscal note for providing insurance to legislators is $1.3 million a year. Remember, being a legislator is considered a part-time job, but this legislation would provide full-time free health insurance. Please call your senator on Monday at (334) 242-7800 and ask them to vote NO on SB 520.
Federal
2008 Small Business Summit registration
Registration has begun for the 2008 Summit. The theme of the 2008 event is We Are Stronger Together. Two spectacular events are planned in the newly renovated National Portrait Gallery and historic Union Station. Roger Staubach, former Dallas Cowboys quarterback and current entrepreneur, will be one of the featured speakers. Presidential party nominees have been invited, and NFIB members will make Hill visits to their congressmen and senators. Find out more at www.NFIB.com/Summit
If you have any questions, please call the Montgomery office at 334-264-2261.
Sincerely,
Rosemary Elebash
NFIB/Alabama State Director
Rosemary.elebash@nfib.org
