Message to the Congress
Transmitting the Annual Report on the State of
To
the Congress of the
I
am pleased to submit to the Congress my fifth annual report on the state of
small business. The State of
The
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.
These
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.
These
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.
Ronald
Reagan
The
White House,