U.S. Chamber Fights Harmful Measures Chamber Plays Defense in Congress

The U.S. Chamber, exercising its lobbying and grassroots strength, is working to defeat a host of anti-business measures under consideration in Congress. Here's a look at key proposals and how you can help.

Workplace Mandates-Sen. Ted Kennedy (D-MA) is expected to reintroduce the Healthy Families Act, which would require employers with at least 15 workers to offer 7 paid sick days annually. Such a rigid mandate could expose small businesses to increased labor litigation.

Also, Sen. Christopher Dodd (D-CT) is expected to reintroduce a bill requiring that 6 of the 12 weeks of current unpaid employee leave mandated by the Family and Medical Leave Act (FMLA) be paid. The legislation would also expand FMLA to cover businesses with as few as 25 employees. The current law applies to companies with more than 50 employees.

The Chamber is seeking revisions to FMLA regulations that would give employers greater ability to manage absenteeism attributed to abuse of FMLA. In February, it submitted comments on FMLA implementation to the Department of Labor detailing members' experiences and difficulties in complying with the regulations.

Union Card Check-The U.S. Chamber has launched a major grassroots lobbying campaign to oppose legislation, H.R. 800, that would force employees to decide in the presence of union leaders and supporters whether or not to start a union by signing a card, as opposed to the current system of voting by secret ballot. Secret ballot elections are supervised by the National Labor Relations Board, which protects the interests of both employees and employers. H.R. 800 would open the door to union coercion, intimidation, and badgering to compel employees to sign union cards.

Tax Gap-Small businesses could bear the brunt of proposals by Congress, the IRS, and the Treasury Department to reduce the $290 billion tax gap, which is the difference between the amount of taxes owed and the amount that is paid voluntarily and on time.

Most of the proposals would lead to more paperwork burdens. The IRS and Treasury have suggested requiring businesses to file an information return for yearly payments of $600 or more to service providers.

Another proposal would require companies to electronically verify a service provider's tax number before disbursing funds. If it could not be verified, a portion of the funds would have to be withheld and sent to the IRS.

The Chamber is concerned that these changes would unfairly shift the burden of compliance from tax cheats to law-abiding third parties. Simplifying the tax code is the most effective way to ensure timely compliance, according to the Chamber.

Three Percent Withholding Mandate-Beginning in 2011, vendors doing business with the government will face a 3% federal, state, and local government withholding requirement on all government contracts. The Chamber is concerned about efforts to move up the date and increase the withholding percentage as a way of raising additional revenues to offset extended tax relief. The Chamber supports full repeal of the 3% withholding provision and opposes efforts to move up the implementation date.

What You Can Do

• Become a member of the U.S. Chamber's grassroots network.
  www.VoteForBusiness.com.
• Register for America's Small Business Summit 2007 in Washington, DC, from May 23 to 25 and meet with your elected representatives or their staffs.
  www.uschambersummit.com.
• Become involved with the Chamber's more than 30 policy committees and councils. www.uschamber.com/committees.