June 27: Small Businesses Respond to High Court's Divided Ruling Monday on Public Financing Laws

MSA leaders say decision striking trigger provisions allows corporate players to buy political influence uncontested, at expense of small businesses

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WASHINGTON, DC – On Monday, the U.S. Supreme Court issued a decision in McComish v. Bennett, a case testing some state public financing laws. In a 5-4 decision, the Court ruled narrowly that trigger-based matching funds provisions of some states' public financing laws are unconstitutional, while leaving the foundation of public financing systems intact.

The Main Street Alliance released the following statements from national spokespeople in response:

Jim Houser, owner of Hawthorne Auto Clinic in Portland, OR and MSA steering committee member:

This decision is bad for small businesses. We don't have the kind of money it takes to buy influence through heavy election spending the way big corporate players can. The Court's decision basically says to big corporations and their trade groups, 'Go ahead, spend all you want to buy elections, and if anyone tries to limit the corrupting influence of your activities, we'll run interference for you.

The silver lining is that the decision leaves the basic structure of public financing systems intact, reaffirming that small dollar public financing laws are a legitimate way to combat corruption and promote free speech. Establishing small dollar fair elections laws is a critical way to take corporate corruption out of elections and restore integrity to our political system.

David Borris, owner of Hel’s Kitchen Catering in Northbrook, IL and MSA executive committee member:

This decision goes against the very idea of America as the 'land of opportunity.' It means big spenders, many of which are big businesses, will be able spend massive sums of money to flood election debates and drown out the interests of small businesses like mine. It means corporate heavy hitters will continue to be able to buy influence by tipping the scales of elections with their campaign spending, then rewrite the laws of the land to favor their narrow special interests at the expense of small businesses - and everyone else.

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Our Mission:

The Main Street Alliance creates opportunities for small business  owners to speak for themselves on issues that impact their businesses and local economies.

Our Values:

  • Trust & Transparency: Successful small businesses are  built on the trust of our customers, where a handshake is a commitment.  We advocate full transparency in our relationships with government.
  • Inclusion & Equity: Small businesses succeed when  communities thrive, and thriving communities are built on the values of  inclusion and equity – where everyone is welcome, everyone is invited to  contribute and everyone has the opportunity to succeed.
  • Leadership: If small business owners don’t speak up, who will  represent us? We speak for ourselves, so that the true voice of small  business will be heard. Small business owners need to be an integral  part of the decisions that impact us.
  • Sustainability: We build our businesses and communities not  merely for short-term gain, but for the long haul. We recognize sound  public policy as an investment that benefits our communities and  businesses over time.
  • Accountability: We work hard, our employees work hard and we  make direct contributions to our communities (paying taxes) with the  expectation that our contributions will be spent wisely. We promote  fiscally responsible government that uses revenues to advance practical  solutions to everyday problems.
  • Shared Responsibility: We recognize the role of small  businesses as part of the fabric of communities and we’re committed to  giving back to our communities. We believe everyone needs to contribute  their fair share.

Watch Out for Small Business Identity Theft!

Rick Poore, a leader with MSA from Lincoln, Nebraska, had an op-ed published in The Hill for the 10 year anniversary of the Bush tax cuts on June 7. Rick's piece provides a forceful critique of the claim that the high-end Bush cuts help small business, and warns small business owners to watch out for small business identity theft - the use of false small business arguments to advance the narrow interests of big corporations and the wealthy.

Read Rick's op-ed in The Hill.

For the 10 year anniversary, MSA released a fact sheet highlighting what small businesses need most: local investment to create jobs, not tax cuts for the wealthy.

Click here to download the fact sheet.

Health Law to Deliver Big for Smallest Businesses

New research released today re-confirms two key points that small business owners who've been fighting for health care reform knew all along:

  • First, that employer health coverage has been on the decline for the last decade, and small businesses have been feeling the squeeze more than anyone.
  • And second, that provisions of the Affordable Care Act are going to bring health coverage within reach for a lot of small business owners who want to offer coverage but haven't been able to.

This second point is real good news for small businesses, and it comes in an Urban Institute report released today by the non-partisan Robert Wood Johnson Foundation (it's refreshing to see some real research after the circus show over the controversial McKinsey & Co. "study" that has been thoroughly debunked over the past week).

The Urban Institute study forecasts that insurance offer rates for firms with 100 or fewer employees will increase by nearly 10 percent thanks to the Affordable Care Act's health insurance exchanges and other insurance market reforms. Firms with fewer than 10 employees are expected to see the biggest jump - an increase of more than 14 percent. Talk about delivering big for small businesses!

Of course, many important decisions remain to be made about how states will set up their new insurance marketplaces, or exchanges. Main Street Alliance leaders are actively engaged in states from Maine to Oregon to promote exchanges that maximize on the opportunity to make quality, affordable health coverage available to all small businesses.

Click here to see the Main Street Alliance's exchange recommendations one-pager

MSA's Bill Daley Testifies on Small Business Access to Credit

On June16, the House Small Business Committee Subcommittee on Economic Growth, Capital Access and Taxes held a hearing entitled The Dodd-Frank Act: Impact on Small Business Lending. The Main Street Alliance's Bill Daley was invited to testify on behalf of businesses in our network. See the clip of Bill's testimony:

A TRAIN that Shouldn't Leave the Station

Opponents of clean air and water standards are putting their money into a new set of wheels. It's called the TRAIN Act (TRAIN stands for Transparency in Regulatory Analysis of Impacts on the Nation - read the bill here).

Put briefly, this proposal is an attempt to open a new line of attack on  the Environmental Protection Agency and rules that protect and promote clean air and water, veiled in the language of "cost-benefit analyses." And when the proponents of this proposal say "cost-benefit" analysis, what they really mean is "cost-cost" analysis - that is, an evaluation that takes into account only the costs and not the benefits of clean air and water for businesses, local economies, and communities.

The fact is, we already have review processes set up to look carefully at the full picture of costs and benefits when it comes to updating the standards that protect our air and water. We have plenty of cost-benefit analyses, both from government agencies and from independent third parties. And when you look at the full picture, it's clear that the benefits of our air and water standards far outweigh the costs for small businesses and for our economy overall.

A new briefing paper from the Economic Policy Institute reaffirms these conclusions. The paper, which looked at both final and proposed EPA rules, found that for nine final rules and four proposed rules studied:

  • The combined annual benefits from the nine final rules exceed the costs by $32 billion to $142 billion a year (with benefit/cost ratio ranges from 4-to-1 to 22-to-1).
  • The combined annual benefits from the four proposed rules exceed the costs by $160 billion to $440 billion a year (with benefit/cost ratio ranges from 12-to-1 to 32-to-1).

Looking at these benefit-to-cost ratios, we're talking about an impressive return on investment.

Clean air and clean water are Main Street values and always have been. A true cost-benefit analysis shows that they make economic sense for small businesses and for the economy as a whole.

Here's hoping for small businesses that the ill-conceived TRAIN Act never leaves the station.


Business Against Tax Haven Abuse

We, the undersigned business owners, executives and investors, call on the President and Congress to end tax dodging and support a level playing field for business by enacting strong legislation to stop tax haven abuses. Offshore tax havens reward tax evaders, rob public coffers of needed revenue and offload taxes to responsible businesses and households.


Small Business Owners Warn Mandatory E-Verify Would be Bad for Businesses, Economy

The Main Street Alliance submitted a letter from small business leaders in its network opposing a mandatory expansion of the E-Verify system for the record of a June 15 hearing on the topic. House Judiciary Committee Chairman Lamar Smith filed a mandatory E-Verify proposal on June 14.

Download the letter

Read MSA's press statement



May 27: VA Court Decision on Corporate Campaign Contributions Tilts Playing Field Against Small Businesses

Small business owners urge reconsideration and reversal of Friday’s ruling wiping out remaining protections against flood of corporate money in elections.

WASHINGTON, DC – Today, a federal district court judge in Virginia overturned a century-old precedent in ruling that corporations should be permitted to make direct political contributions to candidates for office. The Main Street Alliance released the following statements from national spokespeople in response:

Jim Houser, owner of Hawthorne Auto Clinic in Portland, OR and MSA steering committee member:

This decision is not only bad for democracy, it's bad for free and fair competition and especially bad for small businesses. Success in business should be determined by who can offer the best products and services, the best value, the best customer service - not by who can spend more to buy influence with elected officials and then use that influence to game the system.

Overturning a century of precedent to allow corporations to contribute directly to political campaigns is going to take a deck that's already stacked in favor of big corporate players – against small businesses – and stack it even more. If this decision is allowed to stand, our Congress and state legislatures will become wholly-owned subsidiaries of large, multi-national corporations that have no allegiance to this country, or any other, but only to their own short-term financial interests.

Small business owners like me, we know we have to compete against the big corporate players to offer the best value and service to our customers. We welcome that challenge. But give us a level playing field, not a system that's rigged so the big corporate spenders win every time.

David Borris, owner of Hel's Kitchen Catering in Northbrook, IL and MSA executive committee member:

This decision tilts the playing field even further in favor of large corporations at the expense of America’s small businesses. Small businesses are already at risk of getting swamped by price-gouging in health insurance. We're already getting soaked as big companies like GE dodge their taxes and leave us to hold the bag. As if all that wasn't bad enough, along comes a judge in Virginia who blows up the last levees protecting us from getting drowned in a flood of corporate money in politics.

Unless this decision is reconsidered and reversed, it's going to be a serious problem, and not only for today's small businesses. It will threaten to choke off new start-up opportunities as large corporations will write the rules of the game and then act as their own umpire. This decision goes against the very idea of America as the 'land of opportunity.'

May 23: Latest Attack on Health Law a Classic Case of "Small Business Identity Theft"

Small business owners demand to know if insurers are bankrolling new campaign to undermine health law

WASHINGTON, DC – Today, the U.S. Chamber of Commerce and allies announced their latest campaign to undermine the nation’s new health law by attacking one of the law's funding sources: a fee on health insurance companies. The Main Street Alliance released the following statement from David Borris, owner of Hel's Kitchen Catering in Northbrook, IL and a member of the Main Street Alliance executive committee, in response:

Health insurance companies are reporting the biggest profits in their industry's history, beating analysts' expectations by an average of 30 percent in the first quarter of 2011.(1) So let me get this straight: the U.S. Chamber and its allies are arguing to let insurance companies off the hook from paying their fair share to bring the small business benefits of the health law – things like rate review and a value for premiums requirement – to market? And they’re making that argument in our name, in the name of America's small businesses?

This looks like another case of small business identity theft – hiding behind small business arguments to defend big insurance profits, just like when health insurers secretly funneled $86 million to the U.S. Chamber in 2009 to fund attacks on health reform in the name of the business community. We'd like to know, are the insurance companies bankrolling this latest campaign, too?


(1) Reed Abelson, "Health Insurers Making Record Profits as Many Postpone Care," The New York Times, May 13, 2011, http://www.nytimes.com/2011/05/14/business/14health.html?emc=tnt&tntemail0=y


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