A Priority for the Next Governor

NFIB/Arizona's Farrell Quinlan

NFIB/Arizona’s Farrell Quinlan

Three of Arizona’s five Democrat members of Congress last week joined all four of their Republican colleagues from the state to accomplish what a similar bipartisan majority in the Arizona Legislature did earlier this year: It loaded a badly needed shot in the arm for the small-business owners who generate almost every new job in the state and nation.

The U.S. House of Representatives voted to make permanent a tax provision that would allow small businesses to write off up to $500,000 in new equipment purchases, and some improvements to real property, instead of depreciating the costs over time. H.R. 4457, titled America’s Small Business Tax Relief Act of 2014, would provide small businesses with expensing levels that are permanent, predictable and at a level adequate to their needs.

This change to Section 179 of the federal tax code, which overwhelmingly passed the House on a 272-144 vote, would prevent the expensing level to fall all the way to $25,000 in 2014, after being at $500,000 from 2010 through 2013. It also indexes the level to inflation. In addition, the House also passed a bill that eases the tax burden on small businesses that change from taxable C-corporate status to S-corporate status.

A quick sample of the small-business owners benefitting from the H.R. 4457 expensing levels would include:

  • Your local pizza shop owner who might want to install new ovens and countertops that cost $100,000. He could deduct these capital improvements the same year he makes them, instead of waiting for the current 39 years to get his full depreciation.
  • A farmer considering equipment purchases of $300,000 could do so with much more ease, knowing it could all be deducted the year she bought it, instead of only $25,000 of it the first year.
  • A contractor looking to buy two work vehicles costing $60,000 would be more inclined to do so. Under current law, only $35,000 could be deducted—spread over five years—instead of all of it immediately.

On June 12, Arizona Democrats Ron Barber, Ann Kirkpatrick and Kyrsten Sinema joined Republicans Paul Gosar, Trent Franks, Matt Salmon and David Schweikert in supporting this pro-jobs legislation. Congressmen Raul Grijalva and Ed Pastor, both Democrats, voted against H.R. 4457. The measure now goes to the U.S. Senate for its consideration.

Earlier this year, a similar tax relief act, House Bill 2664, passed the Arizona Legislature with overwhelming bipartisan majorities. The legislation sponsored by state Rep. J.D. Mesnard (R-Chandler) would have created an immediate state income tax allowance, similar to federal Section 179 expensing for qualifying business equipment investments valued up to $500,000.

In a tragic misreading of the needs of Arizona’s economy, Gov. Jan Brewer vetoed HB 2664 because “the money would be better utilized” on her spending priorities. Undaunted, NFIB is committed to vigorously lobbying Arizona’s next governor and the new Legislature next session to finally realize our own $500,000 allowance to spur new job creation.

Last week’s strong bipartisan House vote to pass H.R. 4457 is very encouraging to small business, especially as demonstrated by the votes of Arizona’s congressional delegation. If Congress and the president do succeed in making it federal law, Arizona’s next governor must match it. If Washington fails, then establishing the small-business expensing allowance in Arizona’s tax code will be all the more critical.

Farrell Quinlan is Arizona state director for the National Federation of Independent Business.

Scott Smith sends mixed message on immigration crisis

Scott SmithTuesday, gubernatorial candidate and former Mesa Mayor Scott Smith announced he would race to the border Wednesday in order to meet with Nogales Mayor Arturo Garino. The reason for their meeting? – to hold a joint press conference to discuss the transportation and “dumping” of immigrant children by the Border Patrol in an old refurbished produce warehouse in Nogales.

In his statement, Mayor Scott Smith called the Obama Administration’s policy of dumping immigrants in Arizona a “failure of leadership” and “the absolute height of stupidity.” The former Mesa mayor also called for Washington to fix our broken border and immigration system.

Smith’s “rush to the border” and his subsequent message following the presser, seem to conflict with his longstanding position on immigration issues and even statements made by Nogales Mayor Garino who was supposedly at the same press conference as Smith.

It was Mayor Scott Smith who opposed Arizona’s effort to enforce federal immigration law through the passage of SB1070 in 2010. This is the same mayor who ran into trouble with Sheriff Joe Arpaio when it was discovered that the City of Mesa was contracting with companies who hired illegal immigrants. Apparently, now that Smith is running for higher office, he’s having to finesse his position to attract hard-line anti-immigration voters. A little pandering only goes so far. Well, maybe not so far in Santa Cruz County.

Smith was also in conflict with Mayor Garino’s statements on Monday when Garino said that all the children being held in the temporary warehouse were in good care and he was comfortable with their living conditions. Keep in mind that Mayor Garino’s record on immigration is quite dismal.  During a private meeting with President Obama, Garino told the president, “I have your back” on comprehensive immigration reform. Garino also argued that the border was secure and criticized illegal crossing prosecution. Yesterday, Garino told the Nogales International that federal officials informed him more children would be processed through the Nogales facility throughout the rest of the summer. He noted after a tour of the facility that, “Border Patrol was doing a great job.”

While the Obama Administration handed the State of Arizona another election year issue, Scott Smith is only nine days late to weigh in on the crisis. Since it was revealed that DHS and the US Border Patrol began the operation over two weeks ago, Arizona officials have already called for federal action. In fact, last Monday, Congressman Paul Gosar at the urging of Governor Brewer and State Treasurer, Doug Ducey, called for a congressional investigation with the House Oversight and Government Reform Committee into the shipping and detention of immigrants in Arizona. Congressman Darrell Issa, chairman of the committee, has pledged to look into the situation as quickly as possible.

Where gubernatorial candidate Scott Smith stands on this issue is anyone’s guess. His opposition to enforcement of immigration law as a mayor tells one story. His support for stronger enforcement as a candidate tells another story. It is an election year after all and finding the right message to appeal to voters is foremost in the mind of most candidates. Let’s hope the voters choose based on proven leadership rather than on finessed messaging.

Rep. Paul Gosar: The Truth About the Shutdown

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Dear Friend,

I know there are a lot of questions surrounding the federal government shutdown, but I wanted to write you today and give you a little background to tell you what is going on here in Washington, D.C.

How We Got Here

It is the duty of Congress to pass an annual budget which would include 12 funding areas.  Both the U.S. House of Representatives and the Senate are supposed to pass the individual bills, and then both bodies come together, reconcile the differences, and send them to the President for his signature.  In the event that a full budget cannot be agreed upon by both bodies, Congress has historically relied on short-term fixes which keep the federal government operating under a temporary basis.

The latest of these budgets ran out on Monday and at midnight the federal government suspended operations for positions deemed non-essential.

My office is still running on a limited basis.  I am in D.C. attending meetings and briefings and taking votes to try to open up necessary services while maintaining the position that we can’t continue business as usual and move forward with Obamacare.

I was sent to D.C. to do the will of the people and you, the people, have asked me to stand my ground on your behalf.

Summary of Three Bills Passed and Sent to U.S. Senate

The House has sent the Senate three different versions of the legislation that would fund the federal government.  Here is a summary of each of those continuing resolutions:

September 19, 2013: this bill would have funded the government while permanently defunding Obamacare http://gosar.house.gov/press-release/rep-gosar-defends-americans-votes-keep-government-open-and-defund-obamacare

September 29, 2013: this bill would have funded the government while delaying the implementation of Obamacare for one year, and would have permanently repealed the medical device tax.  http://gosar.house.gov/press-release/rep-gosar-senate-don%E2%80%99t-run-out-clock-american-people

September 30, 2013: this bill would have funded the government while delaying  Obamacare’s individual mandate to purchase health insurance for one year and required all Members of Congress, all congressional staff, the President, Vice-President, and all political appointees within the administration to purchase their health insurance on the Obamacare exchange. http://gosar.house.gov/press-release/rep-gosar-votes-avoid-government-shutdown

Military Pay Protected by “Pay Our Military” Act

I was proud to vote for the Pay Our Military Act (H.R. 3210) prior to the government shutdown.

This bill protected the men and women of our armed forces from the shutdown by providing the money to pay the salaries and allowances to members of the Armed Forces (including active duty reserves and the Coast Guard) during any period in FY 2014 in which interim or full year appropriations bills are not in effect. Also, it provides the same authority to the Secretaries of Defense and Homeland Security to pay civilian employees and contractors engaged in support of the Armed Forces during the same period. This legislation was signed into law.

Miscellaneous Frequently Asked Questions

You may be wondering what happens to federal services during a federal shutdown.

You have probably noticed that the U.S. Postal Service has continued to deliver your mail.  They are not funded by the Congressional appropriations process.

Social security benefits, SNAP, and unemployment benefits will also continue.

Here are the answers for some of the most common questions via the Heritage Foundation (http://blog.heritage.org/2013/09/30/qa-what-happens-during-a-government-shutdown/)

Q: Would retirees and veterans get their benefit checks?

A: Yes, mandatory government payments such as Social Security and veterans’ benefits would continue to be paid. During a prior government shutdown in 1995, 80 percent of Social Security Administration employees kept working because they were considered “essential” to making benefit payments.

Q: Would national security be hurt by a shutdown?

A: No, national security, including the conduct of foreign relations by the President, is considered an essential function that would continue.

Q: Would food and drug safety be imperiled by a shutdown?

A: No, the federal government would continue to conduct testing and inspection of food, drugs, and hazardous materials, because these are considered essential for the safety of Americans.

Q: Would we still be able to travel?

A: Yes, the government has said during prior shutdowns that the air traffic control system and other transportation safety operations are essential to the safety of the country and would continue to operate. So air traffic controllers would keep directing air traffic at airports around the country, and you would continue to be searched by agents of the TSA when you board a flight.

Q: What happens to federal law enforcement activities?

A: During a shutdown, all federal law enforcement and border control functions continue to operate. So the FBI would continue to make arrests and conduct criminal investigations. The U.S. Border Patrol would continue to patrol the American borders. The federal Bureau of Prisons stays open, and convicted criminals are not released.

Q: Would there be any problems with the Federal Reserve and the Treasury Department’s supervision of our financial system during a shutdown?

A: No, all activities essential to preserving the money and banking system of the U.S., including borrowing and tax collection, would continue. So the IRS would keep on collecting the tax revenues that help pay for the operation of the federal government.

Q: What if there is a natural disaster like a hurricane during a government shutdown?

A: Emergency and disaster assistance are considered essential to protecting life and property, so federal disaster assistance continues during a government shutdown.

Politics of the Shutdown

This evening, the House voted to approve the following bills:

H.J. Res. 70 -  Open Our National Parks and Museum Act – this bill provides immediate funding for National Parks and Museums including Grand Canyon National Park, the National Gallery of Art, the World War II Memorial and the Holocaust Memorial Museum.

H.J. Res. 71 - Provide Local Funding for the District of Columbia Act – this bill would let the District of Columbia spend its local money.

H.J. Res. 72 - Honoring Our Promise to America’s Veterans Act – this bill ensures the VA can continue to operate and provide services, and guarantees veterans disability payments, the GI Bill, education training, and VA home loans will not be disrupted by the shutdown.

H.J. Res. 73 - Research for Lifesaving Cures Act – this bill ensures the National Institutes of Health can continue their work.

H.R. 3230 - Pay Our Guard and Reserve Act – this bill provides pay and allowances for military personnel in the reserve component who are in inactive status.

Even though these are common-sense solutions that will alleviate burdens of the shutdown, Majority Leader Reid and President Obama say they will not support them.

I am doing everything possible to resolve this situation fairly and efficiently. I will keep you updated by Facebook and email with our progress.

As always, you can follow everything I am working on in Arizona and Washington, D.C. through my website (http://gosar.house.gov) on Twitter@repgosar, or through Facebook at Representative Paul Gosar.

Rep. Paul Gosar Introduces the F.A.U.L.T Act

Congressman Paul Gosar

‘Sending billions of taxpayer dollars overseas to hostile countries is unconscionable’   

WASHINGTON, D.C. -U.S. Congressman Paul A. Gosar, D.D.S (AZ-04) introduced the Foreign Assistance Under Limitation and Transparency Act or the F.A.U.L.T Act. This legislation is intended to limit foreign aid to five countries that undermine U.S. foreign policy objectives – Iran, North Korea, Syria, Egypt, and Pakistan. Rep. Gosar issued the following statement:

“Sending billions of taxpayer dollars overseas to hostile countries is unconscionable. Yet, only in Washington, D.C. does it make sense to pay other governments to undermine our foreign policy objectives.”

Rep. Gosar continued, “When countries like Iran, North Korea, Syria, Egypt, and Pakistan act like enemies rather than friends toward the United States and our allies, the time to cut them off from U.S. taxpayer dollars is now.”

Rep. Gosar previously introduced amendments to the last two Department of Defense Appropriations Acts that sought to ensure that foreign aid was not given to hostile international regimes and organizations.  He has introduced the F.A.U.L.T Act as stand-alone legislation in the hope to expand upon these principles and codify them into law.

ICYMI: Rep. Paul Gosar on C-Span’s Washington Journal Discussing Benghazi Hearings

WASHINGTON, D.C. -U.S. Congressman Paul A. Gosar, D.D.S (AZ-04) appeared on C-Span’s Washington Journal to discuss the House Oversight and Government Reform Committee hearing on the Benghazi Consulate attack.

Please click HERE or the image below to watch the interview:

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“There’s accountability in the private sector, but what we lack here is accountability in the public sector.”
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“This narrative that was put out was a deceitful lie that misled the American public.”
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“There is definitely a problem that we’ve got here. It’s not a matter of if, it’s just when, this is going to happen again and that’s why these hearings are so important.”

Seven Arizona Members of Congress Honored as Guardians of Small Business by NFIB

McCain, Kyl and 5 Arizona Congressmen earn perfect 100% scores

WASHINGTON, D.C., Sept. 12, 2012 – The National Federation of Independent Business (NFIB), the nation’s leading small-business association, today named 294 members of Congress as Guardians of Small Business for their outstanding voting record on behalf of America’s small-business owners in the 111th Congress.

NFIB President and CEO Dan Danner praised the Senators and Representatives for “standing up for small business.”

In announcing the winners of the coveted Guardian of Small Business award, Danner said, “Small-business owners pay close attention to how their lawmakers vote on the issues affecting their businesses. The Guardian award is a symbol of sincere appreciation from the small-business community for votes that supported their ability to own, operate and grow their businesses.

“Small-business owners are also known to show their gratitude or disappointment at the ballot box. This November, NFIB members will know that these members of Congress are true small-business champions.”

Guardian awards are given to U.S. Senators and Representatives who vote favorably on key small business issues at least 70 percent of the time.

The following NFIB Guardian Award Winners for the 112th Congress representing Arizona all scored 100 percent:

U. S. Senate

Sen. Jon Kyl   

Sen. John McCain   

(with 45 senators from other states)

U. S. House of Representatives

Rep. Jeff Flake

Rep. Trent Franks

Rep. Paul Gosar

Rep. Ben Quayle

Rep. David Schweikert

(with 242 representatives from other states)

EDITOR’S NOTE: To view How Congress Voted, which has the key small-business votes and voting percentages for each lawmaker, go to http://www.NFIB.com/hcv.

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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 350,000 members 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 about NFIB is available online at www.NFIB.com/newsroom.

AZPBS Airs CD-4 Debate Between Paul Gosar, Ron Gould & Rick Murphy

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Paul Gosar for Congress Releases New TV Ad “Effective”

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Paul Gosar is an effective leader for Arizona.

Paul Gosar was elected to Congress to change Washington. He opposed new taxes, voted to repeal Obamacare, and push through the largest spending cuts since World War II. That’s why he’s been endorsed by Gov. Brewer and the NRA.

is opponent Ron Gould used taxpayer money to fund his campaign was fined by the clean elections commission for not reporting expenditures. Paul Gosar the conservative we can trust.

Congressman Gosar Joins Colorado in Condemning Senseless Violence and Standing with Aurora

Washington, D.C.—Today, U.S. Congressman Paul Gosar (R-AZ) released the following statement after joining the entire Colorado delegation in supporting and adopting Rep. Ed Perlmutter’s (D-CO) concurrent resolution, H. Con. Res. 134, to condemn the atrocious shooting that took place in Aurora, Colorado.

“The sadness touching the Aurora community stretches across the nation, yet we stand together in condemning this senseless act of violence,” said Congressman Gosar. “The victims and families impacted by the theater tragedy remain in my thoughts and prayers. The first responders, nurses and doctors who saved lives deserve our greatest thanks. To the community of Aurora, the nation stands behind you in coping and recovering. May justice be served, and may those who lost their lives always be remembered.”

The concurrent resolution condemns the heinous movie theater atrocity, thanks the first responders and other officials who offered their support to save lives, and honors the victims and the resilient community impacted by the tragedy.

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Congressman Paul Gosar Votes to End Business as Usual and “Audit the Fed”

WASHINGTON, D.C. – Today, Congressman Paul Gosar (R-AZ) voted for the Federal Reserve Transparency Act, H.R. 459. This bill, which was introduced by Congressman Ron Paul (R-TX) and co-sponsored by Congressman Gosar, passed the U.S. House of Representatives by a bipartisan vote of 327 to 98.

Congressman Gosar played an active role in advancing the “audit the fed” legislation to the House floor. In addition to being an early cosponsor of the legislation, he was instrumental in passing the legislation through the House Oversight and Government Reform Committee.

“The decisions made and executed by the Federal Reserve’s Board of Governors affect the monetary policy of the entire nation, yet for too long these activities have been carried out in secret,” said Congressman Gosar. “Though the Federal Reserve is only a quasi-government entity, quasi-transparency is unacceptable to the American people. The continued secrecy surrounding the actions of the Federal Reserve is exactly the type of ‘business as usual’ my freshman class was sent to Washington to end, which is what makes today’s vote so important.”

The Federal Reserve Transparency Act would provide the congressional oversight, through the Government Accountability Office, to audit the monetary actions of the quasi-private Federal Reserve. Current law prohibits full congressional access and review of the Federal Reserve’s lending practices.

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Click Above to Watch My Opening Statement from Oversight and Government Reform

Current restrictions on GAO audits include the examination of any transactions made under the Federal Reserve’s open market operations and Federal Open Market Committee directives, any deliberations and discussions on monetary policy, or any agreements made with foreign governments and central banks. Since the 2008 financial crisis, the Federal Reserve’s balance sheet has tripled to $3 trillion dollars. The Federal Reserve Transparency Act, H.R. 459 will remove restrictions and require a one-time audit within 12 months of enactment.

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