ECONOMY & SMALL BUSINESS

Following near-collapse of the U.S. economy and loss of millions of jobs across the country at the end of 2008, Neil Abercrombie started looking for practical steps the government could take to start rebuilding. In a number of meetings with small business groups, he learned that bank lending to businesses had been nearly frozen, and that many small business owners had to resort to their credit cards to cover routine operating expenses. He was also told that small businesses were often victims of the same unscrupulous billing practices by credit card companies that had been outlawed for consumers. His response was to introduce The Small Business Credit Card Act (HR 3457), which extends consumer protections against illegal billing practices to small businesses with 50 or fewer employees. The bipartisan legislation, widely hailed by the nation’s small businesses, is under active consideration in the House and Senate.

Nearly two out of every three new jobs created in the past 15 years has been in small businesses, and clearly, they would have to play a major role in job creation to help turn around the current economy. Rep. Abercrombie knew their ability to expand depended on increased demand for their products and services, and access to capital. Working closely with Rep. Nita Lowey (D-NY), Senator May Landrieu (D- LA) and Olympia Snowe (R-ME), he introduced legislation (H.R.4302) to increase the limit on loans guaranteed by the U.S. Small Business Administration (SBA) from $2 million to $5 million. The budget neutral House and Senate legislation is strongly supported by businesses and lenders across the country as a direct way to make more capital available to businesses trying to expand and hire additional staff.

Small and medium size research and technology companies have also benefitted from the Congressman’s position on the Armed Services Committee where he defended and expanded the reach of the Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) programs. Early in his Congressional tenure, he led the fight to stop defense agencies and departments from “bundling” federal contracts, thereby enabling small businesses to compete. He also succeeded in persuading the Small Business Administration to establish the Hawaii Women’s Business Center. Finally, he regularly targeted federal research funds to create jobs and expansion opportunities for Hawaii’s key dual use companies.

For many years, Abercrombie has fought to reinstate the Spousal Travel Tax Deduction, which would immediately increase business travel and stimulate the economy. Similarly, he also championed the Business Meal and Entertainment Tax Deduction. These proposals will benefit blue and white collar workers from taxi drivers, airline and rail personnel, employees in retail, hotels, and restaurants to local attractions, theater, museums, etc. Local government will also benefit as well with increased local tax revenue and higher visitor numbers. Abercrombie succeeded in increasing the deductibility of business meals in the House passed Taxpayer Relief Act of 1997 and the 11 federal minimum wage tax offset package in 2000. These bipartisan bills are supported by the Congressional Tourism Caucus and also have Senate companion bills.

Another long-standing fight for Abercrombie is the elimination of the Estate Tax or the so-called “Death Tax.” Realizing high land valuations in Hawaii were preventing small businesses from passing on to the next generation, Abercrombie joined efforts to eliminate the Estate Tax for small and family businesses.

He also joined House efforts to provide permanent estate tax relief by freezing it at the 2009 level so that certainty and stability is provided for farmers and small businesses. A recent boost to the economy, Abercrombie supported the passage and funding of the Cash for Clunkers Program, an idea first proposed by President Obama. This program doubled car sales in Hawaii and increased fuel economy by nearly 60 percent for people who participated in the program.