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December 2005
by James C. Musser, ASBA Washington Representative

This month ASBA was fortunate to catch up with Congressman Ron Lewis (R-KY), a true friend of small business, to discuss current legislation that might be important to small businesses. Mr. Lewis also gave us a glimpse into what we might expect from Congress in 2006. Congressman Lewis, whose district covers much of Kentucky’s bourbon country, serves on the prestigious House Committee on Ways and Means, which has jurisdiction over many issues of interest to business owners such as taxes, trade and health care. Mr. Lewis is especially well attuned to small business concerns because he owned a successful small business prior to his election to Congress.

ASBA asked Congressman Lewis what prompted him to give up his business to run for Congress. The Congressman said he felt compelled to run for several reasons. He recognized the need for the government to change the way it deals with small businesses. Mr. Lewis was especially motivated by the heavy tax and regulatory burden that small businesses carry and he cited a need for Congress to create opportunities for small businesses to provide health care for their employees. The Congressman’s voting record reflects those concerns and he has been a solid supporter of tax relief, regulatory reform and has voted to create association health plans (AHPs) so that small groups and trade associations can band together to provide health insurance plans to their employees.

Mr. Lewis has supported numerous legislative initiatives designed to help make small businesses more productive and profitable. From his position on the Ways and Means Committee, Mr. Lewis voted to allow the enhanced expensing for small business, known as Section 179 Expensing because of its location in the Internal Revenue Code, which allows small businesses to write off the first one hundred thousand dollars invested in business equipment. Congressman Lewis said, “Section 179 Expensing has been a crucial component for our economic growth. It has allowed small business owners to add jobs and buy equipment that makes their firms more productive.”

Congressman Lewis credited the Bush tax cuts for eleven straight quarters of economic growth in excess of three percent. The Congressman said that he is worried about the “huge roadblock to further economic growth” if Congress does not make the Bush tax cuts permanent. Specifically Mr. Lewis discussed the need to permanently repeal the Death Tax so that small business owners and farmers can pass along family farms and businesses to their children. The Congressman also cited the need to make the lower rates for the dividend and capital gains taxes permanent because so many Americans, including small business owners, have their retirement security invested in the stock markets. Congressman Lewis serves on the Social Security Subcommittee and has taken a particularly strong interest in retirement security issues.

In the next session of Congress, scheduled to start in late January 2006, Congressman Lewis said that he foresees a strong effort to make the Bush tax cuts permanent and a renewed effort to pass AHP legislation, which has been held up in the U.S. Senate. The Congressman is also working on trade legislation to help open markets overseas for American small businesses.

ASBA appreciates all that Congressman Lewis has been doing to help small business owners and Kentucky can be proud to have such strong voice for small business and family farms in Washington. ASBA looks forward to working with the Congressman and his excellent staff in the New Year.

Finally, to all our ASBA Members and readers, Merry Christmas from Washington!

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