Good morning,

House Republicans are focused on boosting small business growth by reducing tax and regulatory burdens that are hindering growth and job creation. As the Washington Times writes today, “Small business has taken a beating in this brutal economy. Combine the developed world's highest corporate tax rate with the constant stream of new regulation flowing from the Obama administration, and it's no wonder the economy is stalled. House Majority Leader Eric Cantor wants to provide some relief so the backbone of our economy can start hiring and investing again.”

Today In History: The Miracle On Ice: In 1980, the U.S. men’s hockey team pulls off one of the biggest upsets in sports history with a 4-3 victory over the heavily favored Soviet Union at the Winter Olympics in Lake Placid, New York. Two days later, the Americans went on to beat Finland and take home the gold medal.

Birthdays: George Washington, Ted Kennedy, Sparky Anderson, Dr. J, Drew Barrymore, Steve Irwin and Jeri Ryan

Here is what’s in today’s Ledger …

Cantor’s Small-Business Drive
House leader wants tax and regulatory relief to turbocharge economy
The Washington Times
Emily Miller
February 21, 2012

Small business has taken a beating in this brutal economy. Combine the developed world's highest corporate tax rate with the constant stream of new regulation flowing from the Obama administration, and it's no wonder the economy is stalled. House Majority Leader Eric Cantor wants to provide some relief so the backbone of our economy can start hiring and investing again.

"It's really important that we get serious about job growth in this country, and helping small business is the number one way to do that," Mr. Cantor told The Washington Times in an interview. The Virginia Republican is drafting legislation that would allow companies with 500 or fewer employees to take a deduction equal to 20 percent of their income before paying the standard tax rates on the remainder. The deduction would also be available to firms that file as individuals, as most small companies do. Mr. Cantor is planning a floor vote near Tax Day.

This relief measure contrasts sharply with President Obama's call to hike rates on those who make over $200,000 so he can pile on the spending. "The president has consistently taken a position that he wants to increase taxes on small business people. And we know the numbers - 50 percent of those impacted by his proposal for higher taxes are small-business people," Mr. Cantor said. "If we want to create jobs, we shouldn't be taxing small-business men and women, we should be helping them."

With tax rates set to go up at the end of the year, uncertainty over tax bills and regulations has stalled small-business decisions. According to a recent Gallup poll, only 1 in 5 small-business owners plans to add employees this year. Worse, of the few who plan to hire, an overwhelming 72 percent will only add temporary or part-time positions. When businessmen anticipate their tax liability is going to go up, they start stockpiling cash to pay the Internal Revenue Service instead expanding.

In the coming weeks, Mr. Cantor will also bring to the floor a package of bills easing access to capital for startups. Thanks to Sarbanes-Oxley red tape, the cost of a company going public has shot up to $2.5 million - beyond the reach of many small businesses.

The House bill includes a measure to provide an "IPO on-ramp" by easing Securities and Exchange Commission (SEC) regulatory requirements for five years or unless the company is worth $1 billion. It would also lift SEC restrictions against small business use of "crowdfunding," which refers to raising capital from a large pool of small investors. Though Mr. Obama and House Democrats support the measures, the Senate has failed to act.

Mr. Cantor said he's hopeful that Senate Majority Leader Harry Reid, Nevada Democrat, will schedule a vote in the upper chamber for both bills. "It's up to Harry Reid whether he's going to be an obstructionist or actually join the bipartisan effort to help small businesses," said the House leader. To help create jobs and boost all our finances, any tax and regulation barriers stalling small-business growth must be removed.

FYI -

Moments ago, President Obama said, “Congress needs to step up and support America’s small businesses.” The President will have a chance to put action behind his rhetoric.

Over the weekend, Leader Cantor announced that the House will move forward on two initiatives to empower small businesses and entrepreneurs – the JOBS Act and a 20% small business tax cut to create jobs. If President Obama is serious, there is a real opportunity to work together to create jobs.

• Leader Cantor Unveils The Jumpstart Our Business Startups Act – The JOBS Act. There are two things that we’re going to be taking up within the next several weeks that I think all of us can agree on. One is a bill that we're calling the JOBS Act – Jumpstart Our Business Startups – which essentially is going to be a package of measures that have a lot of bipartisan support. These are things that the President and his jobs council advocated, including Steve Case the former AOL Chairman and Founder. What it does, is it speaks to small business growth. We have to afford access to more financing for small businesses and address the regulatory burden that small businesses are facing so we can see them start up again. Over the last three years, there has been a 23 percent decline in small business startups, which is indicative when you look at the job growth numbers. We know small business is the job growth engine in this country. This package represents the first opportunity for us post the payroll tax holiday extension to work together in a bipartisan manner and get something done.” (Fox News Sunday, 2/19/12)

• Leader Cantor Proposes 20% Small Business Tax Cut To Create Jobs: “We'll bring forward a bill that provides a tax cut for small businesses, again, knowing full well that small businesses create more than 60 percent of the jobs in this country. … We know that overwhelmingly the number of folks who are business people in this country file as individuals. We want to help the small businesses as defined by the Small Business Administration – that’s 500 employees or less. Those entities will be allowed a 20 percent tax cut straight to the bottom line, and that's what we want to do is make it easier for them to start up.” (Fox News Sunday, 2/19/12)

Good morning,

Today, the President will call for bipartisan cooperation on areas where the White House and Congress can work together. Since the beginning of last year, Leader Cantor and House Republicans have been working on bipartisan bills to help our nation’s small businesses to access capital, grow and hire again. We know that small businesses create more than 60% of the new jobs in this country. Let’s work together to help them to help them succeed.

In the coming weeks, the House will put forward a package of bipartisan measures to empower small businesses and entrepreneurs, including the JOBS Act and a 20% tax cut for small businesses. On Fox News Sunday, Leader Cantor said, “Over the last three years, there has been a 23 percent decline in small business startups, which is indicative when you look at the job growth numbers. We know small business is the job growth engine in this country. This package represents the first opportunity for us post the payroll tax holiday extension to work together in a bipartisan manner and get something done.”

Today In History: In 1885, The Washington Monument, built in honor of America's revolutionary hero and first president, was dedicated in Washington, D.C.

Birthdays: Rep. John Shimkus, Rep. Charles Boustany, Rep. Steve Palazzo, Rep. Scott DesJarlais, Rep. John Lewis, Ashley Greene, Ellen Page, Jennifer Love Hewitt, Kelsey Grammer, and Alan Trammell

Here is what’s in today’s Ledger …

FYI –

• House Majority Leader Eric Cantor (R-Va.) previewed the upcoming Republican legislative agenda Sunday, saying the GOP would be pushing two measures it believes would spur small business growth. Cantor said he was "disappointed" by signals from the White House that the payroll tax cut extension was the last piece of legislation the president saw as a high priority in 2012, and believed a "window of opportunity" existed to further aid jobs growth.

• The first of the plans - dubbed the "JOBS Act" - would improve access to financing for small business plans and reform or remove regulations for starting a small business. Cantor said that the package drew from ideas suggested by the president's Council on Jobs and should garner bipartisan support. "We need to address the regulatory burden that small businesses are facing so we can see them start up again," Cantor said on "Fox News Sunday." "This package represents the first opportunity for us post the payroll tax cut extension to work together in a bipartisan matter and get something done," he added.

• "We'll be bringing forward a bill that brings a 20 percent tax cut for small businesses knowing full well that small businesses create 60 percent of the lobs in this country," Cantor said.

Cantor Previews GOP Small Business Proposals, Defends Payroll Tax Cut
The Hill
Justin Sink
February 19, 2012
 

House Majority Leader Eric Cantor (R-Va.) previewed the upcoming Republican legislative agenda Sunday, saying the GOP would be pushing two measures it believes would spur small business growth.

Cantor said he was "disappointed" by signals from the White House that the payroll tax cut extension was the last piece of legislation the president saw as a high priority in 2012, and believed a "window of opportunity" existed to further aid jobs growth.

The first of the plans - dubbed the "JOBS Act" - would improve access to financing for small business plans and reform or remove regulations for starting a small business. Cantor said that the package drew from ideas suggested by the president's Council on Jobs and should garner bipartisan support.

"We need to address the regulatory burden that small businesses are facing so we can see them start up again," Cantor said on "Fox News Sunday."

"This package represents the first opportunity for us post the payroll tax cut extension to work together in a bipartisan matter and get something done," he added.

But in what is likely to be the far more controversial of the proposals, Cantor also proposed a 20 percent tax cut for small businesses.

"We'll be bringing forward a bill that brings a 20 percent tax cut for small businesses knowing full well that small businesses create 60 percent of the lobs in this country," Cantor said.

But some Democrats have argued that plan could simply provide a huge tax cut for wealthy businessmen without doing anything to guarantee the money would go to creating job growth. Cantor dismissed that argument, saying that all Americans were "in this together."

"That suggestion is somehow that I shouldn't be going home to my district in Richmond, Va. telling a small businessperson that I can't help by providing a tax cut for them so they can grow their business and hire more people just because someone else might benefit. At the end of the day we are all in this together," Cantor said.

Cantor also dismissed recent polls that showed Americans overwhelmingly supported raising taxes on millionaires to bridge the budget deficit - and felt that Medicare should not be touched.

"Underneath that question is somehow we don't care about people who are out there working paycheck to paycheck trying to make it and somehow it's unfair. What I would say is it is unfair that these individuals who want a better life, who want more pay aren't getting it," Cantor said, arguing Republican policies created more equal economic opportunity.

Cantor was also asked about Republicans signing off on the payroll tax extension, despite not getting the spending cuts they were holding out for.

"What we would have liked to have seen is it done in a way that we could actually reduce spending while at the same time affording this tax relief…every time we tried to advance that, [Sen. Majority Leader] Harry Reid (D-Nev.) and the president just wanted to play politics with it," Cantor said.

Ultimately, Cantor said, Republicans were unwilling to let taxes go up.

"I don't think it's a good idea to allow taxes to go up on working people. Basically a payroll tax says we're going to increase taxes on everyone who has a job. I don't think that's what we need to do," Cantor said.

In other comments, Cantor dismissed the president's budget as "not serious" and pledged the House would "do everything we can to restore religious freedom" after the president's recent ruling requiring health care insurers to provide free contraceptive coverage.

Cantor also responded to Rep. Maxine Waters (D-Calif.) characterization of him and Speaker John Boehner (R-Ohio) as "demons" during a speech to California Democrats.

"Those kind of words are obviously not very helpful," Cantor said. "That's evidence again that any time we try to put forward pro growth measures or measures to get the budget under control, that's what happens. Individuals on the other side take off in a personal attack that has nothing to do with the debate."