PETALUMA, Calif., February 14, 2006 /PRNewswire/ -- The American Small Business League has reviewed OMB projections for the next several years which show that the Bush Administration plans further cuts to the beleaguered SBA. Having already cut the agency in half since taking office, President Bush has recommended reducing it every year going forward through 2010.

In a detailed report on how the current Administration's tax policies affect small business, the Center on Budget and Policy Priorities shows that "the vast majority of small businesses receive no benefit whatsoever" from the tax cuts purported to aid entrepreneurs: the top marginal tax rate and the repeal of the estate or "death tax". Also according to the study, 51% of the tax cuts enacted since 2001 going to households with small business income accrue to only 8% of the households with incomes exceeding $200,000, whereas only 16% of these tax cuts are going to the 62% of households with incomes below $75,000.

Congresswoman Nydia Velazquez, Ranking Member of the House Small Business Committee called the 2007 budget an "attack on this nation's entrepreneurs." "This budget fails in every respect to provide entrepreneurs with the access to capital, entrepreneurial training, business development, and contracting opportunities they need to keep our economy strong," Velasquez said.

"Small business people need to realize this is not about politics, it's about survival," stated Lloyd Chapman, President of the American Small Business League. "The Bush administration has no interest in supporting the majority of businesses where most Americans work. Bush and the conservative Republicans would like nothing better than to reduce the SBA to the point where it will no longer be big enough to exist as a stand-alone agency. This looks like the end to Federal contracting programs and other services for small, women-owned, and minority-owned firms." Chapman added, "It's time for small businesses to fight back."

About the ASBL
The American Small Business League was formed to promote and advocate policies that provide the greatest opportunity for small businesses - the 98% of U.S. companies with less than 100 employees. The ASBL is founded on the principle that small businesses, the backbone of a vital American economy, should receive the fair treatment promised by the Small Business Act of 1951. Representing small businesses in all fields and industries throughout the United States, the ASBL monitors existing policies and proposed policy changes by the Small Business Administration and other federal agencies that affect its members.

###