Beauty Industry Scores on Capitol Hill;
FICA Tax Credit Gains Powerful Allies

Rep. Shelley Berkley of Nevada and Sen. Blanche Lincoln of Arkansas have agreed to champion the Small Business Tax Equalization & Compliance Act on behalf of the beauty industry. Also known as the FICA Tax Credit, the legislation would give salon/spa owners a dollar-for-dollar tax credit on the 7.65% FICA taxes paid on employee tips. The legislation would also help ensure the IRS's enforcement efforts focus on those who do not pay taxes, rather than on those who do.

"Rep. Berkley and Sen. Lincoln are longtime supporters of small business and our industry," said Steve Sleeper, PBA executive director. "Having them as primary sponsors bodes well for our industry."

A small group of industry leaders from around the country recently met with key members of the House and Senate tax writing committees to garner support for the FICA Tax Credit bill. "These meetings come at a very strategic time," said Frank Zona, chairman of PBA's government affairs committee. "With so many new faces in Washington, it's extremely important that we educate policymakers on the importance and timeliness of this issue."

"This was my first time on Capitol Hill," said Scott J. Buchanan, owner of New York's Scott J. Salons & Spas. "My message to Rep. Charlie Rangel and others from New York was that this is a common sense issue that's long overdue." PBA members Kris Carpenter, Daired Ogle, Regina Webb, Andrew & Frank Zona, Serena Chreky and Scott Buchanan also met with Sen. Max Baucus (MT), chairman of the Senate Finance Committee, and Rep. Ron Lewis (KY) and Rep. Sam Johnson (TX), both of the House Ways & Means Committee, among others.

The timing and strategic focus of these Capitol Hill meetings are a part of PBA's larger emphasis on a stronger and more comprehensive government affairs effort. PBA members are encouraged to contact their members of Congress to ask them to sign on as co-sponsors of the Small Business Tax Equalization & Compliance Act.

To learn how you can get involved, visit www.probeauty.org/advocacy or contact Sam Leyvas at 800-468-2274 x118 or sam@probeauty.org.