NSBA Members Hear from the ExpertsJune 25, 2014
The first speaker was Scott Parkinson with the office of Sen. Marco Rubio (R-Fla.) who spoke on regulation issues. During his remarks, Parkinson spoke about a pair of bills introduced by Sen. Rubio last year: the Regulation Costs to Small Business Act (S. 535), which would require the SBA to determine the total cost of federal regulations to small businesses; and the Regulation Costs to America Act (S. 536), which would require the Government Accountability Office to report on the total cost of all federal regulations. He highlighted the Senator’s NSBA-supported bill, the National Regulatory Budget Act of 2014 (S. 2153), introduced in March 2014 which would impose strict, enforceable constraints on the ability of the federal government to impose regulatory costs on the public.
Next to address the group was William McBride, chief economist at the Tax Foundation, who spoke on issues surrounding tax reform. McBride stated that, in recent years, the tax burden has increased on small businesses because the tax extenders have expired and were not renewed. With the unlikeliness of comprehensive tax reform occurring soon, the Tax Foundation argues that a permanent extension of bonus depreciation is ideal for investment and economic growth. Bonus depreciation allows all businesses to immediately deduct half of investment in equipment and software with the remainder to be written off over a few years according to the normal depreciation system. McBride argued that if made permanent, this would boost GDP by over one percent, the capital stock by over three percent, wage by about one percent and would create 212,000 jobs. Due to the growth in wages and incomes, total federal tax revenue would increase by about $23 billion per year.
The last speaker was former Congressman James Kolbe of the German Marshall Fund, a Board Member at the Committee for a Responsible Federal Budget and a member of the Congressional Fiscal Leadership Council of the Campaign to Fix the Debt. Kolbe discussed how lawmakers from both parties need to compromise on solving the federal deficit. He called for a solution that would incorporate tax reform and entitlement reform, specifically fixes to massive spending programs, Social Security and Medicare. He argued that today 60 percent of all funds we spend go to entitlement programs, which is unsustainable if we want to remain a competitive nation. Kolbe emphasized that if nothing is done about the nation’s debt it will continue to grow and squeeze other vital aspects to our economy. He encouraged the NSBA delegation to remind their Members of Congress that the debt is a serious threat to our economic well being and immediate action is needed.