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June 2005
by James C. Musser, ASBA Washington Representative

ASBA has a number of small business friends on Capitol Hill and one of the brightest stars is Congresswoman Marsha Blackburn (R-TN). Congresswoman Blackburn was a friend of small business even before coming to Washington. As a state senator in Tennessee she won national recognition as a leader in the fight to stop imposition of a state income tax. Ms. Blackburn defeated a wide primary field of candidates in 2002 to run for her seat in Congress and garnered 71% of the vote in her first term. Ms. Blackburn was unopposed in her race for reelection in 2004.

That Ms. Blackburn escaped a serious challenge after her first term is a testament to the good work that she has done in Washington. Congresswoman Blackburn has been a leader on both tax and healthcare issues that are crucial to small business owners. The Congresswoman has been a staunch opponent of the Death Tax and has consistently supported its permanent repeal. When asked about her vote to repeal the Death Tax, her view was clear and one that America's small business owners can appreciate.

Ms. Blackburn said, "When 70% of family businesses don't make it to the second generation, there's a problem. For too long the Death Tax has been a major factor in the failure of family businesses to survive across the generations. The tax not only forces American families to hand over their hard work to the government, families businesses spend millions of dollars each year just to comply with Death Tax regulations. The Death Tax is bad for our communities and it's bad for the nation's economy. Republicans have made it a priority to end this tax once and for all and this vote brings us a step closer to that goal."

As ASBA reported in the April issue of Update from Washington, the House of Representatives passed the repeal of the Death Tax by a wide bi-partisan margin of 272-162 after rejecting the Democratic alternative which did not provide for full repeal of the tax.

Congresswoman Blackburn was also a primary leader in the push to reestablish the deductibility of state sales taxes from federal income tax for taxpayers in states like Tennessee, Texas, Florida and others which do not have state income taxes. That deduction had been removed several years ago and had an enormous impact on small business owners and families. Through Ms. Blackburn's efforts and a long up-hill fight the deduction was restored when President Bush signed the American Jobs Creation Act into law last October.

ASBA has also taken note of the good work that Congresswoman Blackburn has done in supporting legislation to make health care coverage available for small businesses. The Congresswoman has been a champion for Association Health Plans, one of ASBA's top goals. She has also been a strong supporter of the new Health Savings Accounts which were part of Medicare reform. Both individuals and employers can benefit from Ms. Blackburn's efforts to make health care coverage available and affordable.

For being such a champion for small business, ASBA salutes Congresswoman Marsha Blackburn. The small business owners of Tennessee and the country can be proud of her.

James C. Musser, Esq. is a legislative consultant based in Falls Church, Virginia. His reports are updated monthly.