November 4, 1999

Small business watches
for key issues in campaign platforms

By Nick Hillyard
CyberCaucus 2000 News Service
Drake University

DES MOINES, Iowa -- The Iowa chapter of the National Federation of Independent Business represents 9,500 small and independent business owners in the state, or as they like to refer to their members, "Main Street."

This diverse group has interests ranging across the board, with membership made up of 22.3 percent retail, 20.9 percent service industries, 17.6 percent agriculture, 12.7 percent construction, 8.3 percent manufacturing, 6.9 percent financial/banking/realty, 6.3 percent transportation/communication and 5 percent wholesale.

As the year 2000 presidential campaign heats up, NFIB members are paying close attention to the issues and making known what they want in a candidate.

"After [President] Clinton's recent veto of the Republican tax bill, our members are looking for a change," said Dave Brasher, director for the NFIB in Iowa.

If passed, that bill would have phased out the estate tax and federal unemployment surtax and allowed 100 percent deductibility for health insurance of self-employers, among other issues important to small business owners.

The Iowa Legislature has a great record with small business, said Brasher, being arguably the first state to allow 100 percent deductibility for health insurance of self-employers on state income taxes and eliminating the estate tax for direct descendants of the self-employed. This record reflects Iowa's emphasis on small business, and that scares some candidates, Brasher said.

A recent poll of membership reveals the most immediate benefit to Iowa's business owners would be a 10 percent federal income-tax cut across the board. But besides income-tax cuts, Iowa business is looking at health care issues in the platforms of presidential hopefuls.

This year, the U.S. House of Representatives passed the "Patients' Bill of Rights." This bill would increase the cost of health insurance 3 percent. That may not sound significant, but for each percent of increase, 300,000 people lose their health insurance, Brasher said."That's more than the population of Des Moines uninsured for each percent."

Iowa's business owners are looking for a candidate who won't support health care increases, Brasher said. As prices go up, many employers quit buying insurance for employees - choosing to give them the money previously spent on health insurance. And as research shows, employees don't spend this money on insurance, Brasher said. Iowa's business community is looking for a candidate who will create legislation to let small business pool together to start medical savings accounts that will decrease their costs.

Minimum wage is another hot issue for Iowa businesses. "Laborers are like any other commodity, you pay them for what they do, and when the government raises the minimum wage, they raise unemployment," Brasher said."This wasn't seen the last time the minimum wage was hiked because the economy was growing so fast, but people lose jobs, lose hours and lose benefits."

NFIB members are watching candidates' views on ergonomics standards for the Occupational Safety and Health Administration. Ergonomics applies the knowledge of the strengths and limitations of humans to the design of equipment and the workplace with the hope of decreasing work-related injury."Without proper scientific backing, they are prepared to throw out a mammoth rule: 'My back hurts so you have to let me off and pay for it'," Brasher said.

By far the most controversial issue is ethanol. NFIB members largely have an independent, free-market business philosophy and government mandates go against that. However, government mandates on ethanol would help many Iowa businesses.

Brasher said that NFIB members have very different views on the issue. One member told Brasher that ethanol saves energy, helps farmers and means less oil is imported from the Middle East. Another said that he owns a fleet of trucks and would go out of his way to avoid filling his trucks with gas containing ethanol, just to protest a government mandate. He said the government shouldn't tell us what we can and can't do in the market place.

"The ethanol issue has [candidate John] McCain too scared to set foot in Iowa; he knows he'll be blasted by the farm groups," Brasher said.

Candidate Bill Bradley may not be scared to come to Iowa, but he's taking a different approach with Iowa, Brasher said. "He has a horrible voting record with us but is saying he was voting for his constituency while representing New Jersey."

"Candidates do seek out what turns Iowa on, and they get it in their platform somewhere - it's a good position to be in," Brasher said.

There is no perfect candidate for Iowa's business owner. The candidates all have varying views - on tax cuts, health care, minimum wage, ergonomics and ethanol for a start."It's interesting, having all of the candidates coming through here. I just hope they remember our issues" at caucus time, Brasher said.