In a bit of good news, the new trade numbers came in and are in line to add 1.8 percent to the GDP in the second quarter. That, and stronger than expected retail sales numbers, should result in GDP growth of more than 2 percent in the second quarter, putting another dent in public perception that we are in the midst of a recession.
The explosion of exports over the past couple of years is an under-reported story. Exports are up nearly 18 percent in just the last twelve months and almost single-handedly kept the economy from contracting in the past two quarters.
When your S Corporation Association team began working on small business issues two decades ago, the existence of small business exporters was widely doubted. Small businesses simply did not have the resources to access overseas markets.
Today, thanks to the information age small businesses make up the heart and soul of the exporting community. According to our allies over at the Small Business Exporters Association, 97 percent of exporters are small and medium-sized and their ranks have more than tripled since 1987.
In this environment and with exporters literally carrying the rest of the economy on their backs, it makes less sense than ever for Congress to raise tax rates on small exporters. The S Corporation Association and its allies continue to fight efforts to eliminate the IC-DISC and the assistance it provides to America’s exporting community. Today’s trade numbers are just a reminder of how important a fight it is.