Heres some good news . . . The Senate will begin its summer recess this week (the House has already adjourned.) We should be grateful for every day theyre not in Washington where they screw so many things up and still keep a straight face.
But this also presents a good opportunity. During the recess, our representatives come home to spend time in their districts to, they say, listen to constituents concerns. Every dealer should take this opportunity to contact them while theyre home. And, not only to oppose an issue, but to demand they get behind legislation that benefits their constituents namely us!
For example, the IRS thinks it has finally found a pot of gold. Buried in the 2,300-page health care bill you remember, the bill no Congressman had time to read -- is a provision that, beginning in 2012, requires all small businesses to file a 1099 on every purchase of goods that exceed $600 in a calendar year. Businesses must now file 1099s when they purchase more than $600 in services from a vendor in a year. But goods -- the new law adds the purchase of all goods! This will be a paperwork nightmare for small businesses like our dealerships.
So, heres a mission: The House has already recessed without passing a bill to repeal this disaster. While your Congress person is home this month, call or visit and tell them to push repeal of the new 1099 law when they return to Washington.
TODAY, on the Senate side, however, there is action you should take right now. The Senate has not, yet, recessed. At this writing, the Small Business Jobs Creation Act (H.R. 5297) is being filibustered. We need that bill passed. You can call you Senator TODAY -- especially if a Republican and ask them to vote YES for cloture and YES for H.R. 5297. Simply tell your Senator: We need the tax benefits, loan provisions, and other trade enhancements in H.R. 5297 to create jobs.
More specifically, why do we want this bill? Look at this -- it also contains: 1) An amendment that would repeal the new IRS 1099 requirement 2) Extends the SBA Dealer Floorplan Financing Program to three years and ncreases SBA loan caps for dealer floorplan financing from $2 million to $5 million 3) Provides a 100 percent advance rate for floorplan loans 4) Eliminates some SBA fees and makes other enhancements to credit availability for floorplans and business credit 5) Increases SBA 504 loans from $1.5 million to $5.5 million and micro-loans from $35,000 to $50,000 as well as increasing SBA Express Loans for working capital from $300,000 to $1 million 6) Includes more than $12 Billion in Small Business Tax Relief and establishes a new $30B Small Business Lending Fund to boost community bank lending to small businesses and 7) Provides $12B in small business tax cuts, including extending Sec. 179 expensing to $250,000, bonus depreciation and a carryback of general business credits to five years.
Now thats a package worth the few minutes it will take to call our Senators today!