Tag Archives: taxes

Sequestration is not a Smart Strategy for Reducing the Deficit, Say Small Business Leaders

Most Say Federally Funded Basic Research is Important to Private Sector Innovation

Alexandria, Va.—February 26, 2013— More than two-thirds (67%) of small business leaders say basic research funded by the federal government is important to private sector innovation, according to a new nationwide survey of small business owners/operators commissioned by Research!America. In addition, nearly half (45%) say medical research funding to universities and other non-governmental research institutions should not be cut as part of sequestration, and a plurality (40%) say that such across-the-board cuts are not a smart strategy for reducing the deficit.

The survey findings also reveal that small businesses support the federal government’s role in science, technology, engineering and math (STEM) education. Seventy percent of respondents say STEM education is important to the future of their business and the federal government should increase funding for those programs.

“It is striking that small business owners, the backbone of our economy comprising nearly 80% of business leaders nationwide, strongly value federal support for research and recognize the major role it plays in spurring private sector growth,” said Research!America President and CEO Mary Woolley.

A majority of respondents (85%) say it’s very important or somewhat important to reduce the federal debt and deficit and to cut federal corporate and individual tax rates (81%). Among the top strategies for deficit reduction are entitlement reform (25%), eliminating targeted corporate tax breaks (22%) and closing tax loopholes (21%). Seventy-seven percent say the rising cost of health care, a major chunk of our national debt, is important to their businesses, a concern that mirrors other components of the economy as well as individuals. A huge majority, 80%, say it’s important for the government to support research that focuses on making our health care system more efficient.

The concern of small business owners is strikingly evident as it relates to our nation’s world leadership status, with 90% describing research and development as important to our global competitiveness.

“Small business owners understand the critical role of federal government in giving small businesses a launching pad that includes the stimulus of innovation based on federally supported research and development,” added Woolley. “Deep cuts to medical research funding would be detrimental to small businesses, our nation’s economy and global competitiveness if policy makers allow the sequester to take effect.”

The nationwide survey of small business owners/operators was conducted by Zogby Analytics for Research!America. Based on a confidence interval of 95%, the margin of error for the panel of 203 business owners is +/-7.0 percentage points.

To view the poll, visit: www.researchamerica.org/uploads/Feb2013smallbizsurvey.pdf

About Research!America polls

Research!America began commissioning polls in 1992 in an effort to understand public support for medical, health and scientific research. The results of Research!America’s polls have proven invaluable to our alliance of member organizations and, in turn, to the fulfillment of our mission to make research to improve health a higher national priority. In response to growing usage and demand, Research!America has expanded its portfolio, which includes state, national and issue-specific polling. Poll data is available by request or at www.researchamerica.org.

About Research!America

Research!America  is the nation’s largest nonprofit public education and advocacy alliance working to make research to improve health a higher national priority. Founded in 1989, Research!America is supported by member organizations representing 125 million Americans. Visit www.researchamerica.org.

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A Weekly Advocacy Message from Mary Woolley: Bungee-Jumping into the New Year

Dear Research Advocate,

Since I wrote with a note of optimism last week, Speaker Boehner was unable to hold his caucus, and both houses of Congress summarily recessed. As of today they remain at a virtual standoff, with the House calling for passage of a bill to extend all tax cuts and the Senate calling for passage of a bill to let rates expire on families making more than $250,000 per year. The current 112th Congress and the White House are unlikely to come to terms on a deal this year. And now the rhetoric has changed to describing a fiscal cliff effect that isn’t irreparable (thus “bungee jumping,” per a Bank of America economist), with the Administration using damage-delay maneuvers until the new Congress springs into action in the first weeks of 2013. Or maybe things will drag on for months, again? Clearly, “deadlines” have lost their meaning; politics trumps all. Perhaps the markets will force action as they did over TARP. For all of us, stakeholders in research — patients and caregivers, researchers, universities, and industry — the message is that elected officials continue to ignore our interests.

On a positive note, increased media attention to the impact of the fiscal cliff has provided opportunities for researchers to describe the very real consequences of deep spending cuts. In response to an interview request from CBS News, we asked Dr. Kerri Mowen of the Scripps Research Institute to describe how medical research would be affected by the fiscal cliff for a segment that aired on the CBS Evening News on Christmas Eve. Stories like this are crucial for maintaining the drumbeat on the consequences of budget cuts from both a health and economic standpoint. Fewer grants mean fewer discoveries and massive job losses at research facilities and industries nationwide. “Cliff diving” will rupture the drug discovery pipeline and hinder medical progress, an outcome most Americans fear and dread, according to our polls.

We must start the new year with a renewed focus on personalizing the reasons research should be prioritized. The health and well-being of Americans is at stake. Make one of your New Year’s resolutions a pledge to do more to engage lawmakers and the general public. We can help; call on us early and often!

Sincerely,

Mary Woolley

A Weekly Advocacy Message from Mary Woolley: Merry Cliftmas?

Dear Research Advocate,

Are we heading over the fiscal cliff? You have probably seen the several public opinion polls saying most Americans now think it’s inevitable. (“Merry Cliftmas,” says Jon Stewart.) Our latest polling tracks with that of others — and adds a timely insight. Just when one might least expect Americans to voluntarily increase what they owe to Uncle Sam, more than 50% say they would be willing to pay $1 more per week if they were sure the dollars would go to medical research. See this finding and more in a new poll we commissioned to take the pulse of Americans at this high-stakes time in our history.

We have been asking about willingness to pay more in taxes for years now, but it is particularly relevant now while elected officials are talking about tax reform and so many people are rethinking the role of government. We hope that advocates will use our poll data, emphasizing that Americans believe research is a part of the solution to containing health care costs and a significant driver to our economy.

You’ve heard about the impact of the fiscal cliff (and possible solutions to it) on NIH and other agencies that support research, but what about the impact on private sector innovation? Our VP for policy and programs, Ellie Dehoney, points out that cuts to Medicare and Medicaid reimbursement rates could create a disincentive for venture capitalists to invest in new medicines. Read the full article in Genetic Engineering & Biotechnology News. New investment in biotech is already down significantly from last year, a trend that does not bode well for patients waiting for innovative treatments.

According to a new brief from the Center for American Progress: “Our national investments in research and development as a percentage of discretionary public spending have fallen from a 17% high at the height of the space race in 1962 to about 9% today, reflecting a shift in priorities of our government.” That’s disturbing, the authors assert, since research and innovation are powerful economic drivers. Public sector funding is slipping in a key area just when we need it most. For more on how innovation powers the economy, see a new report from the Information Technology and Innovation Foundation: The 2012 State New Economy Index. Wherever your state ranks, its future economic success depends on robust investment now in the knowledge economy.

United Health Foundation and its partners have released the 23rd annual America’s Health Rankings — a wonderful resource that tracks key state health indicators across the nation, providing fuel for targeted public health strategies. Investing in research that will open more doors to prevention of obesity is just one of the answers to the call to action issued by the report and its accompanying release.

To help our federal leaders understand how very much is at stake right now, we must all get involved in illustrating the impact slashing research funding will have on individuals, families, careers and business. The AAAS has launched an initiative enabling you to submit a comment and/or a video about current threats to R&D funding, information that will then be used for advocacy. Please take a moment to add your voice!

Sincerely,

Mary Woolley