Wednesday, April 25, 2012
Long: Tax Cut Act gives small businesses a chance to grow
Washington thinks they know best how to create jobs. They think more government regulation and more taxation will lead to more jobs. However, it’s really the people who create jobs, not Washington bureaucrats.
Small businesses are going to continue to struggle as long as Washington thinks they can tax and regulate our way to economic recovery. That’s why, I voted for the Small Business Tax Cut Act on April 19th. This bill would help small businesses reduce their tax burden and gives them more opportunities to create jobs.
The Small Business Tax Cut Act will give small businesses with fewer than 500 employees a tax deduction of 20 percent of their income, which will free up critical funds for them to hire new employees. Currently, cash-strapped small businesses face federal tax rates as high as 35 percent. It is estimated that 22 million small businesses will benefit from this tax cut.
Right now the bill is stuck in the Senate where most good bills go to die. We need to make sure that now that the House has done their job, the Senate will do theirs.
Expanding Opportunities for Small Businesses
As someone who was a small businessman for over 30 years, I know how hard it can be to run a business, especially during tough economic times. Troubles are only made worse by the cost of government regulations, which are estimated at over $10,000 per employee per year.
To help small businesses and startups, we need to remove the government from the process so that they can get back to what they do best, creating jobs. That’s why, recently the House and Senate were able to come together and pass theJumpstart Our Business Startups Act, or JOBS Act. The bill combines six previous bipartisan jobs bills that reduce regulations and fees on small businesses and startups.
According to the Small Business Administration, over 60 percent of new jobs are created by small businesses. At a time when new jobs are needed, bills like the JOBS Act will help them grow and expand, and that will help get our economy back on track.
It’s time to get the government out of the way and once again make America the best place in the world to do business. I was pleased to see President Obama agreed and signed this bill into law on April 5th.