U.S. Chamber of Commerce: Small Business News Archive

Labor Day Press Kits Available Online
As the national celebration of Labor Day quickly approaches, small businesses can feel good about the tremendous opportunities they have provided the American workforce. Almost all of the 23 million net new jobs created during this time of economic prosperity have come from small business. This boom of employment opportunities has driven the unemployment rate to one of the lowest levels in history and provided an unprecedented focus on worker satisfaction. 53% of the private workforce is employed by small business.

Looking behind the statistics, small business owners work closely along side their employees and in many cases view a worker similar to that of a family member. Opportunities for employee ownership either from within or venturing out on ones own are far greater in small business than a larger concern. Small businesses have taken the risk of hiring the young and untrained worker, then, through patients and effort, enhanced the skills and abilities so that the individual is a productive member of society.

The small business community should enjoin in the celebration this weekend knowing the tremendous contributions they have made to the American worker.

You can learn more about the benefits American business provides its workers by downloading the U.S. Chamber’s "Thank you, America’s Workers" Labor Day Communications kit.

Labor Day Facts

Labor Day Op-Ed

Small Business Facts

President Vetoes Death Tax Repeal
As expected, President Clinton today vetoed the Death Tax Repeal stating that, "The majority in Congress has taken the wrong approach. Repealing the estate tax would be fiscally irresponsible, regressive, poorly targeted to small businesses and family farms, and would undermine charitable giving."

A veto override will most likely be attempted in the House when Congress returns for business after Labor Day.

The U.S. Chamber will vigorously fight for the total repeal of the burdensome gift and estate tax. The U.S. Chamber will aggressively work to encourage a tax code that provides small business the ability to invest their money into the growth of their enterprises and not in the growth of big government.

Pension and Retirement Reforms Likely To Move In Next Tax Bill
On the heels of the Presidential veto of the of the gift and estate tax repeal, the Senate Finance Committee plans to mark up the second tax reconciliation bill on September 7. This bill will reportedly deal with retirement security and would include provisions to increase the annual IRA and 401 (k) contribution caps and make it easier for small businesses to offer pension plans to their workers. Small business pension measures passed the House just before the summer recess with a vote of 401-25. Even though President Clinton did not expressly threaten a veto of this measure, he did express concern of the cost.

For many small business owners, the early years of owning a business require considerable reinvestment of resources from operations that tend to be marginally profitable during the startup phase. It is only after the maturity of the business that cash flows allow the owner to invest in retirement. In many cases, the small business owners rely on the equity in their enterprises for their future well being.

"Reform is critical, if we are to encourage more businesses to offer a pension benefit now, while many workers still have time to build for their retirement," said Bruce Josten, Chamber executive vice president. "Without reform, more workers will be forced to rely on Social Security, which is already facing financial difficulty."

Over half of the U.S. workers lack pension plans. According to an August 23^rd report by the General Accounting Office, about 53% of the nation’s employed workforce of 69 million people were without a pension plan in 1998. This figure has decreased by five percentage points since 1988. Meanwhile, the latest statistics on personal income, spending and savings indicate that the U.S. savings rate has hit an all-time low. The Commerce Department reported that the national savings rate was negative 0.2% in July compared with a positive mark of 0.1% in June. The July savings rate was the lowest level since the Commerce Department began keeping track in 1959.

At a press conference for the introduction of this legislation on March 11, 1999, small business owner Fred Rosenthal, CEO of Xanadu, Inc, representing the U.S. Chamber of Commerce, indicated that the existing rules present a monumental barrier to the selection and implementation of a cost effective pension strategy for himself and his employees.

The U.S. Chamber of Commerce will continue to aggressively pursue legislation that is important to the success of small businesses.

Chamber Launches Pension Calculator Web Site
The U.S. Chamber, along with the Department of Labor, Small Business Administration, and Merrill Lynch Wednesday officially launched an interactive, educational web site that provides small businesses with comprehensive information on how to choose a retirement plan for employees. This unique combination of public and private organizations is encouraging small businesses to use the information to become more informed about the choices available when picking the best plan.

The site includes an interactive retirement calculator that allows small business owners to tailor a plan to meet the needs of their business and their employees.

Select A Retirement Plan Web Site

Press Release: U.S. Chamber, DOL, SBA, Merrill Lynch Launch Small Business Retirement Planning Web Site