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Private failure, not taxpayer-funded industrial policy, is an important part of economic growth

October 27, 2011 By 3 Comments

by Stephen Slivinski
Goldwater Institute

These days, most states have some sort of government agency responsible for bringing jobs into the state. Most of them, including Arizona’s new Commerce Authority, focus on “target” industries. Whether the focus is the solar industry or another group of companies, the punchline is always the same: a centrally-controlled body – either the agency or the state legislature – should direct taxpayer-financed resources to nurture specific companies for the good of the state’s economic future.

But is this approach – prone as it is to the chasing of fads –the right one? It’s an important question because most companies don’t survive very long. And those that do aren’t the premiere companies forever or even for very long.

In his new book, Adapt: Why Success Always Starts with Failure, Financial Times columnist Tim Harford highlights a study by economic historian Leslie Hannah published in the late 1990s. Hannah looked at the 100 largest companies in the world in 1912 and tracked their lifecycle. He found that by the next decade ten of those companies had vanished. Over half had disappeared in the next 83 years.

There aren’t many on the list of successful companies we would recognize today. In fact, none of the companies in 1912’s top 10 were even in the top 100 by the 1990s.

The cycle continues today. Before the current recession, 10 percent of American companies disappeared every year. But this isn’t a permanent loss to long-term economic growth – those failed ventures are replaced by new and better companies that innovate and create more prosperity.

Instead of transferring taxpayer money to today’s favored industries, policymakers should take the long view, encouraging private-capital investments without government-imposed impediments.

A tax code that doesn’t penalize investment would be a vital first step. Even better: Get rid of the state income tax, creating a boon to entrepreneurship. Short of that, reducing the tax burden on investment success – such as eliminating the capital gains tax for investors – would be essential.

Many private investments may fail, but that’s OK. At least government policy won’t be committed to propping up a handful of connected companies with taxpayer money. Private investment activities – even when they fail – plant the seeds for long-term economic growth.

Stephen Slivinski is senior economist for the Goldwater Institute.

Learn More:

Goldwater Institute: Research shows states don’t stimulate job growth with taxpayer handouts

Arizona Commerce Authority: Public meeting agenda and minutes

Tim Harford: Failure – it’s everywhere

Filed Under: Economic Development, Economics, Government Reform, Small Business, Spending, State Economy

Rep. Schweikert’s Jobs Bill Passes House Financial Services Committee

October 26, 2011 By 2 Comments

FOR IMMEDIATE RELEASE: October 26, 2011
CONTACT: Rachel Semmel

Washington, D.C. – Rep. David Schweikert (R-AZ), a member of the House Financial Services Committee and Vice Chair of the Capital Markets and Government-Sponsored Enterprises Subcommittee, made the following statement after his bill, H.R. 2167 The Private Company Flexibility and Growth Act, passed the committee with bipartisan votes:

“Burdensome regulation cannot grow the economy nor can it create jobs. My bill provides relief to small businesses by removing an impediment to capital formation. 

“This legislation will help entrepreneurs grow their business, remain competitive, and most importantly create jobs. 

“I am excited that this bipartisan bill, passed in a bipartisan vote, will soon be on the House floor. I encourage all of my colleagues to support this commonsense measure for market growth and job creation.” 

BACKGROUND 

Many small businesses are forced to file as a public company because of an obscure regulation that requires companies with 499 shareholders and $10 million in assets to file with the SEC.

This current shareholder threshold rule was originally adopted in 1964 and has not been modernized since.

This regulation causes undue pressure on our markets because it restricts the number of shareholders and assets these companies can have. In turn, this severely limits the growth stages for companies, which need time and flexibility to develop. Without regulatory relief, these small businesses will not grow or they will be acquired by larger firms. Both of these outcomes lead to fewer jobs and less innovation.

H.R. 2167, Private Company Flexibility and Growth Act, removes these barriers to capital formation for small companies by raising the shareholder threshold from 500 to 1,000 shareholders.

LOOKING AHEAD

The Private Company Flexibility and Growth Act is expected to come to the House floor next week for a vote.

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Filed Under: Elected Officials, Federal Government, Jobs/Labor, Legislation, Press Release, Small Business Tagged With: ,

A tax credit to reduce government red tape

October 5, 2011 By Leave a Comment

by Nick Dranias
Goldwater Institute

Excessive regulation is needlessly destructive to the economy and job creation – and the Goldwater Institute’s annual Legislative Report Card shows that elected officials in both parties fail to recognize the problem.

Since 2003, the report card has measured the voting patterns of state legislators on bills that offer new regulations. Year after year, the average legislator votes to advance more regulation rather than curtail it. But when tens of thousands of Arizonans are looking for work, we no longer have the luxury of tolerating excessive regulation—if we ever did.

The fundamental problem is this: Government does not have any incentive to stop over-regulating. But there is a powerful way to give government the missing incentive it needs – through a regulatory tax credit.

Here’s how it would work: A regulatory tax credit would allow taxpayers to reduce their taxes in an amount equal to the cost of complying with excessive regulation by the government, providing a powerful incentive for government to avoid and reduce regulations.

By empowering taxpayers to align government’s insatiable hunger for revenue with a limited government regulatory policy, tax credits such as these could finally reduce government red tape and let businesses flourish.

Nick Dranias holds the Clarence J. and Katherine P. Duncan Chair for Constitutional Government and is director of the Joseph and Dorothy Donnelly Moller Center for Constitutional Government at the Goldwater Institute.

Learn More:

Goldwater Institute: 2011 Legislative Report Card for Arizona’s Fiftieth Legislature, First Regular Session

Goldwater Institute: Cities can boost business with more freedom

Goldwater Institute: Susie’s lemonade stand not welcome in Phoenix

Filed Under: Government Reform, Regulations, Small Business, State Government

NFIB Seeks Immediate Supreme Court Review of Health-Care Lawsuit

September 28, 2011 By Leave a Comment

Urges Expeditious Decision to Curb Economic Uncertainty in Small-Business Community

WASHINGTON, D.C., September 28, 2011 — The National Federation of Independent Business (NFIB) today filed a petition for certiorari asking the Supreme Court of the United States to hear its case challenging the constitutionality of the Patient Protection and Affordable Care Act (PPACA). The petition for certiorari, filed by the NFIB and its co-plaintiffs, seeks an expeditious resolution, during the Supreme Court’s upcoming term, to the outstanding question of whether the entire new health-care law should be invalidated because the individual mandate exceeds the enumerated powers granted to Congress by the Constitution.

“The 11th Circuit ruling confirmed NFIB’s view that the individual mandate in the health-care law is unconstitutional. It is now imperative that the Supreme Court rule on whether the entire law can stand without the mandate,” said Karen Harned, executive director of NFIB’s Small Business Legal Center. “The sooner the Court takes up this case, the sooner small businesses and individuals will know whether they will have to bear the full weight, financially and economically, of this bad law.”

“While the survival of the new health-care law remains an open question, small businesses and individuals will continue to face uncertainty and trepidation, hesitant to hire or expand,” Harned said. “In filing our petition today, we are attempting to impress upon the Court the urgency of this issue.”

According to NFIB’s petition, the economic impact resulting from the current uncertainty in the health-insurance market is already taking a heavy toll on both big and small businesses. Many businesses are currently in the process of making irreversible fiscal planning for the upcoming years; the unknown potential costs of PPACA are preventing many firms from growing or expanding.

Currently, two federal courts of appeals have ruled on the constitutionality of the individual mandate; one has upheld the mandate, and another has struck it down.  The lower courts are also divided on the question whether the rest of the PPACA can survive if the mandate is unconstitutional. In the Court of Appeals for the Eleventh Circuit, NFIB successfully argued that the mandate is unconstitutional, and the Eleventh Circuit’s decision makes Supreme Court review extremely likely.

NFIB is the nation’s leading small-business advocacy organization, representing 350,000 small businesses around the country.  It is also the only business organization in the lawsuit brought by 26 states against the health-care law.

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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Constitutional Law, Federal Government, Health Care, Press Release, Small Business

NFIB Files Lawsuit to Protect Employer Rights

September 19, 2011 By 3 Comments

Sues the NLRB Over Posting Requirement Rule

WASHINGTON, D.C., September 19, 2011 — The National Federation of Independent Business (NFIB) has filed a lawsuit challenging a punitive new rule issued two weeks ago by the National Labor Relations Board (NLRB). The “Notice Posting Rule” requires private-sector employers to post a notice in their business informing employees of their right to unionize; failure to do so will constitute an independent “unfair labor practice” that subjects businesses to increased scrutiny, likelihood of investigation and an indefinite expansion of the statute of limitations for filing any other unfair labor practice charge.

“With this latest rule, the NLRB has gone too far, passing a mandate that vastly exceeds its authority—largely at the cost of the small-business community,” said Karen Harned, executive director of NFIB’s Small Business Legal Center. “In filing this lawsuit, we are joined by thousands of men and women around the nation who are standing up against the anti-business attitude that is reflected in actions of Washington’s regulators. It is truly a wonder why the government continues to treat job creators as the bad guys.”

Added Farrell Quinlan, Arizona state director for NFIB, “At best our members see this poster rule as unwelcome meddling by the NLRB and at worst, they see it as naked promotion of the unionization of their small businesses. It’s unnecessary, needlessly provocative and will only serve to create division rather than cooperation between small-business owners and their employees.

“Sadly, the NLRB is no longer an honest broker whose unbiased deliberations serve to facilitate understanding and cooperation between small-business owners and their workers. Instead, it has sloughed off any pretense of objectivity and proudly struts its active bias in favor of Big Labor by promoting the most radical and job-suppressing items on the union bosses’ agenda.”

According to NFIB’s lawsuit, the NLRB’s promulgation of the new rule is a gross overreach of its statutory authority under the National Labor Relations Act (NLRA). Moreover, the rule, which takes effect on November 14, 2011, will impact employers with no history of NLRA violations. According to NFIB’s estimates, the rule will impact up to six million private-sector businesses around the country.

The lawsuit asks the court to set aside the rule and declare that the NLRB’s action violates the NLRA.

NFIB previously argued in its public comments on the proposed rule that in the absence of an election petition or a finding of an unfair labor practice, the NLRB lacks the authority to require employers to post any notice, especially a notice far more detailed than those required when the NLRB’s jurisdiction is properly invoked. Further, small businesses are particularly vulnerable to accidental violations because the regulatory compliance burden most often falls on the small business owner and because small businesses do not have dedicated compliance staff. These arguments are reiterated in the complaint.

Joining the lawsuit are the National Right to Work Legal Defense and Education Foundation, an employee advocacy group; Mike Sullivan, owner of Southeast Sealing, Inc., located in Conyers, Ga. and John F. Brinson, CEO of Lehigh Valley Racquet & 24-7 Fitness Clubs in Allentown, Pa., both small-business owners and NFIB members.

NFIB is the nation’s leading small-business advocacy organization, representing 350,000 small businesses around the country.

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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Federal Government, Government, Jobs/Labor, Press Release, Regulations, Small Business Tagged With: ,

NFIB: Repeal Employer Mandate to Help Small-Business Job Creation

September 14, 2011 By Leave a Comment

WASHINGTON, D.C., September 14, 2011 — The National Federation of Independent Business is again pushing to repeal the employer mandate in the Patient Protection and Affordable Care Act (PPACA) on the heels of President Obama’s ask for bipartisan job creation. There is currently legislation in Congress to repeal the employer mandate, and the NFIB has long-supported and championed this important initiative.

“At the same time that President Obama is asking small-business owners to create jobs, his very health care law is preventing them from doing so,” said Susan Eckerly, Senior Vice President of Federal Public Policy at NFIB.  “In fact, small-business owners will tell you that they are suffering a crisis of confidence right now that prevents them from expanding and hiring; how do they move forward with job creation when the unknown costs stemming from the policies of the past few years continue to stand in their way?

“Instead of advocating for more Washington spending bills that do little to help the situation that small-business owners are currently drowning under, Congress should immediately review and repeal some of the policies of the past few years that stand between an employer and an employee. Simply put, the repeal of the employer mandate is an important step toward sound, long-term job creation.”

Provisions of the health care law, such as the employer mandate, have left many small-business owners unable to expand operations as they brace for new costs and taxes coming out of Washington. The health care law requires that employees with 50 or more full-time equivalent employers offer “affordable, minimum essential [healthcare] coverage” beginning in 2014.

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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Economics, Federal Government, Health Care, Jobs/Labor, Legislation, Press Release, Small Business

Small Business Confidence Takes Huge Hit: Optimism Index Now in Decline for Six Months Running

September 13, 2011 By 3 Comments

WASHINGTON, September 13, 2011 – Confidence in the economy among small-business owners tumbled in August, as NFIB’s monthly Small-Business Optimism Index dropped a whopping 1.8 points, settling at a disturbingly low 88.1. The Index has now been in decline for a full six months. Unlike previous months, August’s decline comes in the immediate aftermath of the debt ceiling debate, suggesting a small business “vote of no confidence” in the agreement reached in Washington.

“The results of this month’s survey are very telling,” said NFIB Chief Economist Bill Dunkelberg. “The tumultuous debate over the nation’s debt ceiling and a dramatic 11th hour ‘rescue’ by lawmakers did nothing to improve the outlook of job-makers. In fact, hope for improvement in the economy faded even further throughout the month, proving that short-term fixes will not help. Private sector decision makers think longer term and they don’t like what they see. There is little clarity or certainty. When people are uncertain about the future or fear it, they don’t spend or invest, and they chase after protection—and protection is unlikely to come from the government.”

The results of this month’s survey provide a window into how the debt ceiling debate impacted the outlook of the small-business community. The July survey interviews were taken as the issue was debated; and the Administration’s debt ceiling deal was announced just as NFIB mailed its first wave of interviews for the August survey. The resulting Index was one of the largest declines in owner optimism posted in the last six months. Expectations for real sales gains and improved business conditions account for most of the decline in the Index. The four components in positive territory eased some of that loss, although not by much, landing the Index at a 1.8 point loss.

Some other highlights of August’s Optimism Index include:

  • Sales remain the largest problem for small firms—a full quarter identifying “poor sales” as their top business problem. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past three months lost 1 percentage point, falling to a net negative 9 percent, with more firms with sales trending down than up. Not seasonally-adjusted, 27 percent of all owners reported higher sales (last three months compared to prior three months), down 2 points from the prior month, while 28 percent reported lower sales (unchanged). Expectations for future sales are also in decline, with the net percent of owners expecting higher real sales falling 10 points in August, to a net negative 12 percent of all owners (seasonally adjusted), 25 points below January’s reading. Not seasonally adjusted, 21 percent expect improvement over the next 3 months (down 6 points) and 34 percent expect declines (up 7 points). Owners appear to have lost confidence in the economy and the government’s ability to assist the recovery.
  • The net percent of owners expecting better business conditions in six months was a negative 26 percent, down 11 points from July, and 36 percentage points lower than January. A negative 12 percent of all owners expect improved real sales volumes, 25 points worse than January. Only five percent characterized the current period as a good time to expand facilities (seasonally adjusted), down 1 point and 3 points lower than January. Of those reporting higher profits, 45 percent credited higher sales and 5 percent each credited lower materials cost and higher selling prices. Of those reporting negative sales trends, 45 percent blamed faltering sales, 5 percent higher labor costs, 15 percent higher materials costs, 3 percent insurance costs, 8 percent lower selling prices and 10 percent higher taxes and regulatory costs.
  • The frequency of reported capital outlays over the past six months rose 2 points to 52 percent of all firms in August, the first improvement in many months. Of those making expenditures, 36 percent reported spending on new equipment (unchanged), 20 percent acquired vehicles (up 3 points), and 13 percent improved or expanded facilities (up 1 point). Five percent acquired new buildings or land for expansion (unchanged) and 10 percent spent money for new fixtures and furniture (unchanged). The percent of owners planning capital outlays in the next three to six months rose 1 point to 21 percent, a recession level reading that has typified the recovery to date.
  • Over the next three months, 11 percent plan to increase employment (up 1 point), and 12 percent plan to reduce their workforce (up 1 point), yielding a seasonally adjusted 5 percent of owners planning to create new jobs, a 3 point gain over July. Job creation saw minimal improvement from the previous month. Owners reported reducing employment an average of 0.08 workers per firm over the past few months. This was an improvement from June’s -0.23 workers per firm and July’s -0.15, but still a poor showing. Fifteen percent (seasonally adjusted) reported unfilled job openings, up 3 points, suggesting that the unemployment rate could ease a fraction or remain unchanged.

Today’s report is based on the responses of 926 randomly sampled small businesses in NFIB’s membership, surveyed throughout the month of August. Download the complete study at http://www.nfib.com/sbetindex.

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NFIB’s Small Business Economic Trends is a monthly survey of small-business owners’ plans and opinions. Decision makers at the federal, state and local levels actively monitor these reports, ensuring that the voice of small business is heard. The NFIB Research Foundation conducts some of the most comprehensive research of small-business issues in the nation. The National Federation of Independent Business is the nation’s leading small-business association. A nonprofit, nonpartisan organization founded in 1943, NFIB represents the consensus views of its members in Washington, D.C., and all 50 state capitals.

Filed Under: Economics, Federal Budget, Press Release, Small Business

NFIB Statement on President Obama’s Jobs Address

September 8, 2011 By Leave a Comment

WASHINGTON, D.C., September 8, 2011 — Dan Danner, the president and CEO of the National Federation of Independent Business, issued the following statement regarding President Obama’s address to a joint session of Congress this evening.

“Small-business owners needed to hear something bold from President Obama tonight, but instead just heard more of the same. His plan does not address the fundamental problems facing small business today. In addition, recent history tells us that a huge federal stimulus program is the wrong approach, and again sends the message that the president thinks he can spend his way out of this recession.

“The truth is that small businesses need the government out of their way. Tax breaks are always a welcome help to small businesses, especially in these tough economic times. But those outlined tonight by the president are temporary, and avoid the question of meaningful business tax reform. Lack of sales is still a major concern and there is a great deal of uncertainty among small businesses thanks to the threat of higher taxes and the thousands of pending federal regulations. The president’s speech did little to ease those concerns.”

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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Economic Development, Economics, Federal Budget, Federal Government, Government, Jobs/Labor, Press Release, Regulations, Small Business, Taxation

NFIB Jobs Statement: Job Gains in August? Keep Your Expectations Low

September 1, 2011 By Leave a Comment

WASHINGTON, D.C., September 1, 2011 — Chief economist for the National Federation of Independent Business (NFIB) William C. Dunkelberg, issued the following statement on August job numbers, based on NFIB’s monthly economic survey that will be released on Tuesday, September 13, 2011. The survey was conducted in August and reflects 926 randomly-sampled NFIB members:

“We wish there was good news to report, but sadly, we will give you more of the same: The prospects for a good jobs report are dim. In August, small-business owners reported job losses averaging .08 workers per firm over the last three months. This follows a loss of .23 workers per firm reported in June and .15 workers per firm in July. The good news is that the trend is moving in the right direction—losses appear to be decreasing—although it doesn’t seem to be moving fast enough to close the employment void we’ve been experiencing for the last several years.

“Seasonally adjusted, 14 percent of owners reported reducing employment an average of 2.7 workers per firm; that compared to 12 percent of the owners that added an average of 3.1 workers per firm. The remaining 74 percent of owners made no net change in employment (48 percent hired or tried to hire while 33 percent reported few or no qualified applicants for positions). Fifteen percent (seasonally adjusted) reported hard to fill job openings (up 3 points).

“While the readings remain historically weak, we can find a grain of encouragement as we look at hiring prospects. Over the next three months, 11 percent plan to increase employment (up 1 point), and 12 percent plan to reduce their workforce (also up 1 point), yielding a seasonally adjusted net 5 percent of owners planning to create new jobs, which is a 3 point improvement over July. But, let’s not get ahead of ourselves.

“By region, job creation plans were weakest in the Mid-Atlantic, South Atlantic and Pacific states—something that could change dramatically in areas impacted by Hurricane Irene that will require additional workers for cleanup and repairs. By sector, manufacturers made some good news, showing the strongest level of growth among the sectors surveyed, compared to retail and professional service firms which also were positive but slightly weaker. All other industries reported virtually no change with the exception of construction.

“Overall, the employment picture is largely unchanged. We anticipate a weak payroll number and little change in the unemployment rate.”

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NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Economics, Jobs/Labor, Press Release, Small Business

Sonoran Alliance Seeking Conservative Investors

August 27, 2011 By

FOR IMMEDIATE RELEASE: Saturday, August 27, 2011
CONTACT: Shane Wikfors (480) 719-0729

Phoenix, AZ – Sonoran Alliance announced today that it is seeking business investors to further develop, enhance and ultimately monetize the website as a for-profit outlet delivering political news and opinion in Arizona.

The website will seek business investors who have a passion and vision to compete against Arizona’s existing liberal-oriented political news groups. Sonoran Alliance will also seek to offer training and experience to budding journalists seeking to serve in conservative news outlets.

“For over five years Sonoran Alliance has been a labor of love for the conservative movement in Arizona,” said its creator and editor, Shane Wikfors. “It’s time to fully mature the website as a for profit business venture and bring more conservative talent on board to make an even bigger impact in Arizona political news,” he said.

Interested business investors are encouraged to contact Sonoran Alliance by email or phone at (480) 719-0729.

Filed Under: Press Release, Small Business

NFIB: NLRB Overreaches its Authority with Punitive New Rule

August 25, 2011 By 2 Comments

More than six million businesses to be affected

WASHINGTON, D.C., August 25, 2011 — The same week the Obama Administration announced it was making an effort to scale back burdensome rules on small businesses, the National Labor Relations Board (NLRB), the federal government’s labor union advocate, demonstrated an unprecedented overreach of its authority today by issuing a punitive new rule requiring all private-sector employers to post a notice in their business informing employees of their rights under the National Labor Relations Act.

“Just when we thought we had seen it all from the NLRB, it has reached a new low in its zeal to punish small-business owners,” said Karen Harned, executive director of NFIB’s Small Business Legal Center. “Not only is the Board blatantly moving beyond its legal authority by issuing this rule, it is unabashedly showing its spite for job creators by setting up a trap for millions of businesses.”

Under the National Labor Relations Act, the NLRB does not have the authority to broadly impose rules, such as the one issued today. The statute only permits the Board to act when a representation petition or unfair labor practice charge is filed.

Furthermore, the rule sets up a “gotcha” situation for millions of businesses who are unaware of the new rule or unable to immediately comply.

The NFIB submitted a statement opposing the rule during a public comment period in February. The comments can be found at the following link: http://www.nfib.com/LinkClick.aspx?fileticket=kMpH1o6T6uM%3d&tabid=1083

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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

Filed Under: Federal Government, Jobs/Labor, Press Release, Regulations, Small Business

Jennifer Wright Takes Action To Help Small Businesses

August 20, 2011 By 1 Comment

FOR IMMEDIATE RELEASE: August 19, 2011
CONTACT: Ami Francisco

PHOENIX, AZ (August 19) – When Phoenix mayoral candidate Jennifer Wright saw Mirko Masini and his small business, Caffé Italia, on the evening news; she knew she had to act.

“This is precisely why I want to become mayor of Phoenix,” said Wright, “current city policies are hostile to small business and we need a mayor who understands that.”

Wright reached out to Caffé Italia owner Mirko Masini, who wanted to expand his restaurant to include a patio and grill – but was stymied by the City of Phoenix. Mirko obtained the required permits from Maricopa County, built his patio, and began grilling up carne asada for his customers. A few days after grilling began, a Phoenix City inspector shut him down for not obtaining additional permits from the City.

For weeks now, Maricopa County and the City of Phoenix have been fighting over who has jurisdiction and whose set of rules Mirko should follow. “I cannot believe that the two entities can’t work together,” stated Masini, quickly adding, “Who is in charge? They don’t even know.”

Seeing the injustice that was happening to yet another small business, Wright immediately sprung into action to help. According to Masini, “Jennifer got to the heart of the problem and I expect resolution soon.”

Once elected to the Phoenix mayor’s office, Wright will tackle the maze of competing regulations so small business likes Mr. Masini’s do not get swallowed up by the dysfunctional process. “Small businesses are the key to our economic recovery,” stated Wright. “As mayor, I will foster collaboration between government agencies to improve the environment in which our small businesses operate.”

“At the end of the day, I want to be the last person who has to go through this,” said Masini. With Wright as Mayor, Masini has hope that he will in fact be the last small business owner to be stymied by local government bureaucracy.

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Filed Under: Campaigns & Elections, City Government, Press Release, Small Business Tagged With: , ,

NFIB Endorses Senate President Russell Pearce for Election—Again!

July 25, 2011 By 3 Comments

Small-business association standing up for lawmaker who has stood up for its members

PHOENIX, Ariz., July 25, 2011 — In a less petty political world, no association should have to issue a news released endorsing a candidate for the state legislature in a July of an odd-numbered year, but in doing so today Arizona’s leading small-business group wanted to make an early, emphatic and unqualified endorsement of Senate President Russell Pearce for election, once again, to his 18th Legislative District seat.

“We’re making our endorsement of Russell Pearce early to register small business’ strong support for one of Arizona’s most pro-small business lawmakers as he faces a needless November 8th special election to represent a constituency who overwhelmingly voted for him nine months ago just as they have in five prior elections,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business.

“Small business is rallying to stand up for the man who has stood up for small business for more than a decade.  His recall is a shameful abuse of the election process and a wasteful distraction from the Legislature’s important work of helping Arizona’s private sector create jobs again.  Nothing in Russell Pearce’s actions since the last election warrants this recall election.  The next regular election would have been the appropriate time for his political opponents to try a seventh time to defeat him.

“With apologies to noted political philosopher Dennis Green, District 18 voters will say ‘Russell Pearce is who we thought he was!’ and re-elect him handily on November 8th,” Quinlan quipped.

In the May release of NFIB’s 2011 legislative Voting Record, Pearce posted a 100-percent, pro-small-business voting tally on 15 issues vital to Main Street, mom-and-pop businesses repeating his perfect voting record on small business’ legislative agenda from 2009-2010.

The formal endorsement of Pearce was made by the NFIB/Arizona SAFE Trust, the political action arm of the association. More information can be found on President Pearce’s website at www.russellpearce.com.

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NFIB is Arizona’s and the nation’s leading small business advocacy association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system.

Filed Under: Campaigns & Elections, Endorsements, Press Release, Small Business Tagged With: ,

Schweikert Bill Enabling Small Companies To Access Capital Markets Approved By Committee

June 22, 2011 By 1 Comment

FOR IMMEDIATE RELEASE: June 22, 2011

WASHINGTON – The Financial Services Committee today approved the Small Company Capital Formation Act (H.R. 1070) introduced by Rep. David Schweikert.

The bill makes it easier for small businesses to access capital, which will permit greater investment in these companies and will allow them to grow and create new jobs.

“I am extremely pleased that the Financial Services Committee passed my Small Company Capital Formation Act. This common-sense proposal, passed with bipartisan support, reduces burdensome regulation on small business and creates more jobs. I am glad my colleagues stand with me in unwinding regulation and make our capital markets more vibrant and competitive,” said Rep. Schweikert.

The bill increases the offering threshold for companies exempted from SEC registration under Regulation A from $5 million — which was set in the early 1990s — to $50 million. Increasing the Regulation A threshold will lower the cost of raising capital for small businesses.

“Small businesses are the engine of job growth in our country,” said Chairman Spencer Bachus. “With this proposal, small businesses will be able to more efficiently raise funds that they can use to hire new employees. I commend Rep. Schweikert for offering this important bill that will help small businesses across the country create jobs.”

H.R. 1070 was approved by voice vote.

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Filed Under: Elected Officials, Federal Government, Legislation, Press Release, Regulations, Small Business
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