07/22/2008
Clarksville members speak their minds on healthcare
About 25 small business owners and local leaders gathered in Clarksville last Friday to discuss the healthcare crisis and possible solutions. Entrepreneurs and activists shared stories with a panel that included Sen. Rosalind Kurita and Rep. Joe Pitts from Clarksville, Gateway Medical Center CEO Michael Mullins, the AARP's Bonnie Fertig and NFIB/Tennessee State Director Jim Brown. Topics included CoverTN, the state's limited healthcare benefit program for small business, and health savings accounts. A complete recap, including a link to coverage by the Clarksville Leaf-Chronicle, is available here.
VW picks Chattanooga
Tennessee officials are celebrating the announcement that German automaker Volkswagen has picked Chattanooga as the new home for its next auto-making facility. Tennessee won over Alabama and Michigan in the competitive pursuit. According to a Chattanooga Times-Free Press report, VW said auto production at the Enterprise South industrial park will begin in early 2011 and VW initially will make 150,000 cars annually.
Chattanooga business confidence increasesVW site has room for othersState, local incentives called part of the 'game'VW announcement scrutinized
Eminent domain on NFIB watch list
NFIB is beginning to hear concerns about possible eminent domain abuses in Tennessee. One case, in particular, in Nashville is getting attention in local media and from national activist groups. At issue is a small country music recording business near Music Row in Nashville. The small business owner has refused to sell, and the Metropolitan Development and Housing Agency is proceeding with plans to use eminent domain to take the property. Media reports indicate the property would be used to complete a $100 million development "that would feature a hotel, an office building, stores and condominiums." NFIB, which was part of a coalition that worked on eminent domain reform in Tennessee in 2006, expects the Nashville case to be a test of those reforms. Stay tuned for more details.
Take advantage of early voting
Tennessee has several contested primary races that will go a long way to determining the make-up of the next General Assembly. NFIB encourages small business owners and their employees to vote in these primaries. Early voting began July 18 and ends Saturday, Aug. 2, with the election on Thursday, Aug. 7. NFIB has endorsed three candidates in the early races: Reps. Matthew Hill (Jonesborough) in House District 7, Charles Sargent (Franklin) in House District 61 and Craig Fitzhugh (Ripley) in House District 82. NFIB expects to announce more endorsements in mid-August.
FBI leader addresses Memphis members
Last week, NFIB members in Memphis were treated to an informative presentation from My Harrison, FBI special agent in charge for Middle and West Tennessee. In as much detail as she could share, Harrison discussed successes her team has had combating terrorism in Tennessee. Harrison encouraged audience members to continue sharing tips from the field that have resulted in meaningful pursuits to protect the public. She noted the Tennessee Waltz investigation that led to convictions of several elected officials continues in a modified form.
Federal tax update
NFIB is busy working for your business at the federal level. The following is a brief update of tax issues important to small business.
Small business expensing: H.R. 1797 would make the small business expensing limit permanent, increase it to $200,000 and index it for inflation. The current limit is $250,000, which will expire at the end of 2008 and would fall to $25,000 by 2011.
Diesel parity tax: S. 2896 would reduce the federal diesel tax from 24.3 cents per gallon to 18.3 cents per gallon (the current federal tax on gasoline).
S Corporation Modernization Act: S. 3063/H.R. 4840 would increase access to capital by reducing S corporation ownership restrictions and modernizes the rules that apply to firms that have selected S corporation status.
Restaurant depreciation: S. 2170/H.R. 3622 would make permanent the 15-year depreciation period for qualified investments in restaurant property.
Cash accounting: S. 296 would allow small businesses, except farms, to use the simplified cash method of accounting if they meet the gross receipts test. It increases the amount of the gross receipts test to $10 million from the current $5 million and permits an annual inflation adjustment of that amount.
Tax penalties on transactions: S. 3121/H.R. 6266 would provide relief from high penalties and reduces the regulatory burden for small business owners who do not willfully fail to report certain transactions to the IRS.
Standard home office deduction: H.R. 6214 would provide a standard home office deduction of $1,500.
Cell phone deduction: H.R. 5450/S. 2668 modernizes and simplifies the tax deduction for business-related cell phone use.
Small business benefits from veto override
Last week, Congress overturned a presidential veto of H.R. 6331, "The Medicare Improvements for Patients and Providers Act." NFIB-supported provisions include:
Provides prompt payment for our nation's small and independent pharmacists: Delayed reimbursements in the Medicare Part D program have forced small and independent pharmacists to delay expansions and borrow from their savings to cover payroll, wholesaler bills and other basic operating costs. Prompt pay ensures that claims submitted electronically are paid within 14 days and that all other claims are paid within 30 days.
Halts an unworkable competitive bidding program: As currently structured, if they lost a bid small businesses worry they would be locked out of the Medicare marketplace altogether, threatening to put them out of business. An 18-month delay in the program provides the Center for Medicare and Medicaid Services (CMS) an opportunity to make necessary improvements to the program so that small businesses are not unnecessarily harmed.
Small business news you can useFive things not to do during a downturnState unemployment rate up againTennessee obesity ranking third worstTax increase hurting small business in Texas
Sincerely,
Jim Brown
NFIB/Tennessee State Director
615-874-5288
Jim.Brown@NFIB.org
