SMALL BUSINESS DESERVES APPRECIATION.

Byline: HOWARD McKEON 

Before I became a member of Congress, my brothers and I shared the headaches and victories that go hand in hand with owning your own business. The many challenges, such as finding start-up capital and working long hours, were bearable because of the satisfaction of being my own boss.

Today, more than 25 million small businesses are anchors of the American economy. Not only do they serve us as seats of scientific discovery and producers of innovative ideas; they also account for 99.7 percent of the nation's employers.

They employ 53 percent of the private work force and contribute 47 percent of all sales in the country. Typically, small business owners are the major sources of charitable and civic leadership in our communities.

In recognition of National Small Business Week, my office recently recognized three business owners who have made great contributions to the Santa Clarita community.

Virgil Walker of Auton Motorized Systems, Dave Duncan of Duncan Industries USA and Richard Pocrass of Chocolates a la Carte represent the realization of the American dream. They provide the leadership and charitable support that are vital to a community's growth.

At the same time, many Americans who want to realize their dream of owning their own businesses never will because of government regulations, the complex tax code and an inaccessible health-care system.

The U.S. House of Representatives has taken several common-sense steps to help small businesses keep America working. The most important step is tax relief. For owners of small businesses, lower taxes equal more capital that can be used for necessary equipment repairs, additional staff and staff pay raises.

Relief also should come in the permanent repeal of the death tax. Despite serious estate-planning efforts, 70 percent of small businesses don't survive to the second generation. Nine out of 10 families whose businesses failed within three years of the owner's death cited the death taxes as a key factor. Even so, the Senate put a sunset on the death tax. In 2011, if the sunset is not repealed, the death tax returns.

Unnecessary regulations also put American small businesses at a disadvantage when competitors in foreign markets don't have the same red tape. These regulations cost American businesses $200 billion to $700 billion each year, with the financial burden felt heaviest by small businesses.

The Bush administration, supported by the House Small Business Committee, has announced plans to force agencies to comply with the Regulatory Flexibility Act. The act requires the government to consider the impact of regulations on small businesses and examine less burdensome alternatives.

And, finally, this Congress must take steps to ensure that health benefits are accessible to small businesses. It is inconceivable that more than 60 percent of the 43 million Americans without health care are actually small-business owners, their employees and dependents.

Small businesses are often unable to afford health coverage because they do not have the buying power of large corporations. This can be remedied by allowing small businesses to buy health-care plans through associations such as the National Federation of Independent Businesses.

The president urged Congress to permanently extend and reform medical savings accounts to allow professional associations to offer association health plans to their members and to provide refundable tax credits for individuals who purchase health insurance.

As we close National Small Business Week, it is important that we understand what 25 million small businesses need to thrive in today's uncertain economic climate. These issues of high taxation, over-regulation and surging health-care costs stifle small business operations and hamper job creation.

I will work diligently with the president to promote this comprehensive agenda that will give our small businesses the tools they need to flourish.