The Small Business Administration’s Disaster Loan deadline is rapidly approaching. Georgia businesses requesting disaster loans must file by April 23, 2007.  The SBA can provide loans for businesses in the event of a disaster, from economic injury loans to personal property loans. To learn more, visit the SBA’s Disaster Loan website HERE. �

In his State of the Union address, President Bush outlined a new proposal to help more Americans access healthcare coverage. His plan, detailed HERE, would essentially sever the link between tax-deductible health insurance and U.S. employers – allowing any American who purchases health coverage to reap the tax benefits, regardless of where they work.  This would make coverage more affordable to millions of Americans.

This morning’s USA Today editorial explains:

Say you work for a company that doesn’t provide health insurance. You have to pay for coverage out of pocket or risk going without. You get no tax deduction for the premiums.

Now say you work for a company with a health plan. Your employer picks up most of the insurance tab. You aren’t taxed on the value of this fringe benefit (worth an average of $11,500 a year for family coverage), and neither is your employer.

In other words, the tax code subsidizes employer-based health insurance while keeping the cost out of reach for millions of workers whose employers don’t offer coverage.

The paper further opines:

[The plan] has potential to provide greater equality, give people more ability to leave jobs they don’t like, control costs and encourage more competition among insurers. Rejecting it without serious debate might score political points, but does nothing to help those who suffer from the inequities of the status quo.

Sunday’s Boston Herald editorial agrees, noting:

President Bush deserves credit for finally proposing to reform one of the main flaws of American health insurance, one that no predecessor has cared to tackle. It’s too bad the Democrats in Congress already have said they will stiff him.

To read Phil’s take on the President’s plan, click HERE.

Did you know that for the Democrat leadership to raise your taxes, they don’t even have to win a vote on the House floor. In fact, all they have to do is… nothing.  Unless Congress takes action soon, critical tax relief passed by the Republican majority to help Georgia families and small businesses will expire – and a tax increase will automatically occur.

I strongly support making permanent the successful tax relief passed by the Republican-led Congress. By increasing the child tax credit, delivering marriage penalty relief, and lowering overall tax rates, we have kept our economy strong and growing.

Below is a list of some of the ways your family could be affected if the Democrats let these provisions expire. It’s not a pretty picture (thanks to the Republican Study Committee for these figures)

In 2009, the marriage penalty would be reinstated.

In 2010, the child tax credit will decrease from $1,000 to $500. Also, the small business expensing cap will decrease from $100,000 to $25,000, and the definition of a small business will decrease from $400,000 to $200,000 – raising taxes on our small businesses.

In 2011, things start getting really ugly for the American taxpayer. The marginal income tax rates will increase as follows: 35% bracket will increase to 39.6%; 33% bracket will increase to 36%; 28% bracket will increase to 31%; 25% bracket will increase to 28%; 10% bracket will increase to 15%. The personal capital gains rate will increase from 15% and 0% to 20% and 10%. Dividends will no longer be taxed at the personal capital gains rates, thereby increasing the double taxation of dividends by as much as 62%. The annual education IRA contribution limit will decrease from $2,000 to $500.

Since I began representing the 11th District of Georgia four years ago, I have never once had a constituent come up to me and say, “Gosh, Congressman, can you get the folks in Washington to raise my taxes? I’m just not paying enough of my hard-earned money to the federal government.”  It is shameful that the Democrats plan to let this tax relief expire, thereby raising our taxes and harming our economy.  I won’t give them a pass on this issue, and neither should you.

Tonight, President Bush delivered his annual State of the Union address. To read a transcript of his speech, click HERE.

Here are Phil’s responses to some of the President’s goals:

BI-PARTISANSHIP:
“I am extremely pleased President Bush framed his domestic policy initiatives in terms of choice and innovation, not expanded government bureaucracy.  The American people expect the new Democrat majority to address these problems the right way.  Our citizens don’t want socialized medicine or kid gloves for terrorists. We in Congress need to heed this message.”

HEALTHCARE:
“As a physician, I agree we should give individuals greater control over their healthcare decisions, rather than relying on employers and bureaucratic federal programs.  Concerns over health coverage shouldn’t stop someone from switching jobs or starting a new business, but it often does. Increasing choice and competition in our healthcare system will drive down costs and move us away from the current “big government” mindset.”

IMMIGRATION:
“I am concerned the President’s guest worker program amounts to amnesty for illegal immigrants. The state of Georgia has felt the full impact of illegal immigration on our healthcare, education and social welfare systems, and amnesty would only exacerbate these problems.”

IRAQ:
“On Iraq, the President reminded us that our efforts are directly linked to the larger global War on Terror.  He is absolutely right, and it is a connection that is too often forgotten. Simply put, Congress has a solemn responsibility to give our government and military the right tools to protect us from radical terrorists bent on destroying our nation. The President has a plan for victory in Iraq, and Congress shouldn’t tie one hand behind his back as he’s preparing to deliver the knock-out punch.  Success is far more important than kowtowing to political pressure to abandon our mission.”

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Phil participated in a press conference yesterday criticizing the Democrats’ failed First 100 Hours agenda.

“The Democrats’ first 100 hours were spent on watered-down initiatives that at best were ineffective and at worst were detrimental to our economy and citizens,” he said. “The Democrats showed their commitment to raising taxes and expanding the federal government. They also showed their willingness to forgo debate and process for sound bite solutions that do nothing to address the real problems facing our nation.  The American people deserve better. We need sound policy, not sound bites.”

Former Majority Leader Tom Delay weighed in after the press conference on his blog:

I would personally like to congratulate and thank Representatives McHenry (R-NC), King (R-IA) and Gingrey (R-GA) for outlining the ramifications of the Democrat’s legislative push in their press conference today.

Ultimately, all of the Democrat’s gooey words about bipartisanship were rendered meaningless by ramming through a rules package designed to silence the opposition and make it easier to push future tax increases through the House. Six pieces of legislation, which the Democrats claim were so important to the national interest, received no hearings by the subcommittees or committees of jurisdiction nor did these ideas receive any hearing or input from the public. Pelosi and her gang silenced their Republican colleagues by refusing to allow them to offer or consider amendments.

For more on the Democrats’ misguided agenda, click HERE and HERE.

House Democrat leaders refused to include tax relief for our small businesses when they passed a minimum wage hike last week.  Their action left our small business vulnerable, bearing the brunt of a wage increase that threatens our community employers. Now, CQ Today reports:

The Senate Finance Committee on Wednesday will mark up an $8.3 billion package of small-business tax breaks that leaders plan to attach to a House-passed minimum wage increase.

It is encouraging that the Senate Democrats are not ignoring our small businesses like their House counterparts.

As we begin the 110th Congress, one of the Democrats’ first acts has been to enact House rules that widely open the door for tax hikes on hardworking Americans.  As today’s Wall Street Journal (subscription required) opines:

“Paygo,” as Washington insiders call it, sounds like a fiscally prudent budget practice: If government spends more on program A, it has to spend less money on program B… Ms. Pelosi has something different in mind. Under her paygo plan, new entitlement programs and all new tax cuts would have to be offset by either cutbacks in other entitlement programs or tax increases. This version of paygo is a budget trapdoor, designed not to control expenditures but to make it easier to raise taxes while blocking future tax cuts.

Here’s what the Democrats don’t won’t tell you: tax relief fuels our economy. In fact, in 2006 we witnessed a $318 billion expansion of U.S. economy. And our strong economy has resulted in more revenue:  14.5% revenue growth in 2005 and 11.8% revenue growth in 2006.  So far, Republican tax relief has put $880 billion in the hands of American workers and businesses – NOT the federal government coffers.

Many of the Republican-passed tax relief packages are set to expire starting in 2010 – packages like the child tax credit, the marriage penalty relief, and overall lower tax rates.  If the Democrats let these tax cuts expire, a family of four making $50K a year would see their taxes go up by $2,092 in 2011 – an increase of 13% (according to the U.S. Treasury).  That would amount to a $2.4 trillion tax raise over the next decade.

As the Wall Street Journal advises, “Keep an eye on your wallet.”

I invite you to check out my December e-Newsletter by clicking HERE.  You can learn about the Iraq Study Group Report, the recently passed tax relief bill, the Unborn Child Pain Awareness Act, and my advance directive legislation the House passed this month.

In light of today’s job growth announcement (see below), I want to take a moment to recognize our small businesses.

I am very proud that this Republican majority has passed legislation supporting small businesses.  From reducing the tax burden to helping small businesses afford healthcare for their employees, we are working to support the businesses that generate nearly 70 percent of all new jobs created in America.

Let me share with you some telling facts about American small business, compliments of the House Small Business Committee:

Importance of Small Business to the U.S. Economy

• In 2002, there were approximately 23 million small businesses in America.
• In 2002, 99.7 percent of all businesses in the U.S. were small businesses.
• In 2002, there were 5.5 million small firms with employees and 17.5 million businesses without employees.
• Small firms account for more than 50 percent of non-farm private production and about half of all non-farm sales.
• In 1997, 24.8 percent of manufacturers, 52.6 percent of retailers, and 46.8 percent of wholesalers were small firms.

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Death should not be a taxable event. Unfortunately, the Senate failed to kill the Death Tax last night by a vote of 57 to 41 (the Senate needed 60 votes to pass the measure).

Last year, the House passed the Death Tax Repeal Permanency Act, which would stop the taxation of assets - like small businesses and family farms - that are passed from one generation to the next. I think this is a hugely important piece of legislation, and one that will help keep our economy strong. Our small business owners and family farmers shouldn’t be penalized for passing their businesses on to their children. It’s that simple.

I am very disappointed in the Senate’s failure to pass this legislation.