Jobs from Small Business

Small businesses create 70 percent of net new jobs, yet they’ve been left out of every economic recovery effort this year.  With unemployment at 10 percent, it only makes sense to help small businesses bring some of the millions of jobless Americans back into the workforce.

Last week, I asked President Obama to get behind the comprehensive small business tax relief bill I introduced in June.  My bill would leave more money in the hands of small business owners so they can hire more workers, keep paying the salaries of their employees, and make additional investments that will lead to new jobs.

My legislation would:
• increase the amount of capital expenditures that small business can expense from $250,000 to $500,000, encouraging business to invest in new equipment
• allow more small C corporations to benefit from the lower tax rates for the smallest C corporations
• take the general business credits out of the unfair Alternative Minimum Tax for sole proprietorships, partnerships, limited liability companies, S corporations and small C corporations with $50 million or less in annual gross receipts
• extend the one-year carryback for general business credits to a five-year carryback for small businesses
• provide a 20-percent deduction for flow-through business income for small businesses, which are defined as flow-through entities with $50 million or less in annual gross receipts
• lower the potential tax burden when a C corporation becomes an S corporation.

Tax relief for small business has proven to be effective.  In contrast, the tax increases and mandates in the health care bills and other bills before Congress are creating a very negative environment for small businesses, and the National Federation of Independent Businesses said the Senate health care bill “fails” small business.  Small businesses are understandably hesitant to hire new workers because they keep hearing about all of the proposals to increase taxes and regulations on small business.  These calls for tax hikes and increased regulation on small business need to stop so they can start hiring workers again.

It’s time to harness the power of small business as engines of job creation.  I’ll continue working to see Congress take up my small business tax relief legislation.