Message to the Congress
Transmitting the Annual Report on the State of
the Congress of the
am pleased to submit to the Congress my fifth annual report on the state of
small business. The State of
freedom to choose a way of life and to build upon the strength of an idea is
the cornerstone of American small business and the secret of small business
success. Our job in
A stable and growing economy is our most important goal to ensure small business opportunity. For business owners to contribute to that growth, our policies must be clear and government tampering with business decisions must be minimized. Consequently, I believe that two current initiatives of this Administration are critical small business issues: the effort to reduce Federal spending and to reform our tax laws.
Other policies are surely important too, but success on these two fronts will be the most beneficial to this Nation's 15 million small businesses.
Uncontrolled Federal spending and the deficits it has produced compete with private spending including small business investment. They also hurt the ability of small firms to meet foreign competition. Similarly, a tax system that is needlessly complex and built around high tax rates hobbles the business owner's ability to grow and operate in response to the demands of markets. We will be better off when tax considerations do not determine whether a certain investment is worthwhile or profits from a firm should be reinvested in job creating opportunities. Action in these areas is a small business priority; it is a critical priority of my Administration.
Our efforts cannot stop here. Continued steps to reduce regulatory burdens are important to a healthier small business climate. I call on all Federal agencies to continue the fight to eliminate burdensome regulations and to look askance at proposals for solving every problem with a Federal regulation. The Regulatory Flexibility Act, an important tool for agencies in this effort, requires economic analysis of small business impacts and the consideration of less burdensome alternatives.
Businesses are handicapped by uncertain or limitless liability for injuries arising from their products or services. It is important that our legal system provide redress for those injured by the negligent acts of others and incentives for safe products. But a runaway liability system prevents many small business owners from obtaining or being able to afford liability insurance. The Administration supports legislation that would reform the legal system to provide adequate safety for American consumers, without unduly burdening American business.
and other issues have been clear priorities of the preliminary meetings being
held across the country and which are leading up to the National White House
Conference on Small Business in August of this year. Meetings held in every
State are serving as a forum for
Few experiences are more unique to the American character than going into business for oneself. Ever since small business owners opened their doors they have had to cope with the changing marketplace. Using wit, hard work, and initiative, they have successfully demonstrated that American trait of adapting while thriving in the face of adversity.
basic talents are found in abundance in
A nation's wealth and commercial know-how is molded by its culture. Our society, made up of risk-takers from other nations and cultures, is by nature willing to change and make sacrifices. This willingness to take risks is essential to our creative energies: it is the foundation of American entrepreneurship. The continuing economic recovery is a vivid reminder of the pivotal role small business has been playing in recent years.
The White House,