(SitNews) - U.S. Senator Mark Begich (D-AK) and U.S. Senator Lisa Murkowski (R-AK) used their trips home to Alaska during the Senate recess this week to check in with companies around the state. Begich was pleased with the diversity of businesses, the enthusiasm of owners, and the strong demand for goods and services.

“As a small business owner, I know firsthand the pressures of making payroll, the importance of business credit and the frustration of regulatory burdens,” said Begich.  “I like to check in with Alaska small businesses whenever I have a chance to make sure that my work in the Senate is helping Alaska small business owners.”

Begich noted positive economic indicators such as the recent measurement by the University of Michigan that indicates consumer confidence is as high as any time since July 2007. News reports indicate that the U.S. Consumer Sentiment Index rose in May and the Wall Street Journal reported in May that retails sales increased faster than expected.

Begich has long been a supporter of small business, starting his first business when he was 14 years old.  He is one of just a handful of U.S. senators in office with small business experience.

“Evidence of the national increase in consumer confidence is clearly reflected in Alaska,” said Begich. “From brewers who are dedicated to perfecting their craft to aircraft service companies who are working seven days a week to keep up with customer demand – Alaska’s small business sector is alive and well.  In fact, it’s thriving.” 

Begich is mindful of the links between jobs and economic growth, strong retail and restaurant sales, and consumer sentiment and works to strengthen all three pillars of the economy.

“When people can’t find work, they obviously are worried about the economy and when they are worried about the economy, they don’t go out to eat or shop,” said Begich. “When people don’t go out to eat in restaurants or shop in stores, these businesses can’t hire people to cook and serve and operate the registers.  It’s all connected.”

Begich supports legislation that creates an economic environment that fosters small businesses.  Begich has co-sponsored or supported bills to expand small business lending by credit unions, enable small brewers to pay fewer taxes, repeal onerous 1099 reporting requirements for small business, and shorten depreciation for scheduled leasehold improvements.   

While in Kodiak, U.S. Senator Lisa Murkowski announced Wednesday that she is co-sponsoring S.917, the “Small Brewer Reinvestment and Expanding Workforce (BREW) Act” at a Kodiak Island Brewing Company event, in an effort to promote job growth, spur the $150 million industry in the state and level the playing field for Alaska’s small brewery and microbrew economy against big international conglomerates.  Murkowski discussed the bill with the owner of the Kodiak Island Brewing Company earlier this month, and decided to back the effort after assessing the positive impacts it would have for the Alaskan economy.

“From Healy to Homer, from Fox to Skagway, Alaska’s brewing companies are a key component of our economies, communities and culture,” said Murkowski.  “But in an economy of scale like beer, oftentimes things are tilted to the advantage of the large brewers and more challenging for the small businesses that make money in the community, spend money in the community and give back to their borough and state.  Small businesses already face large start-up costs and overhead expenses, so the Small BREW Act would be a welcome relief, cutting their tax rate on the first 60,000 barrels in half, with a smaller cut past that point and clearing a stream of revenue that will allow them to hire more Alaskans and expand their operations.”

“As we’ve grown, we’ve had the opportunity to put all that cash back into the business and keep us growing,” said Dana Walukiewicz, co-owner of the King Street Brewery in Anchorage.  “Any [tax] break would definitely help us generate additional opportunities for employment.”

Details:

• The Small BREW Act would lower the federal excise tax paid by brewers from $7/barrel to $3.50/barrel on the first 60,000 barrels produced each year, and take two dollars off the $18/barrel tax for barrels between 60,001 and 2 million.
• Harvard University researchers estimate the bill would create over 5,000 jobs in its first year.

Edited by Mary Kauffman, SitNews

Sources of News: 

U.S. Senator Lisa Murkowski
www.murkowski.senate.gov

U.S. Senator Mark Begich
www.begich.senate.gov

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