Tax policies should create more opportunity for economic growth, investment, and job creation – not less. Senate Democrats seemed to have missed the point. This week, when everyone is filing tax returns, the Senate will vote to increase taxes that will discourage economic growth and decrease investment. In contrast, the House will vote to cut taxes for small businesses and expand opportunities for small business growth and job creation. Leader Cantor’s 20% Small Business Tax Cut lets for small business owners keep more of their hard-earned money so they can grow and create jobs.
According to a study released today by Fiscal Associates, this tax cut will help millions of small businesses boost growth, increase job creation and boost wages and one fifth of the beneficiaries are minority-owned small businesses and one third are women-owned. As Leader Cantor told POLITICO, “the public is ‘overwhelmingly receptive to the idea that finally, finally, Washington seems to be listening to the cry of small businesses. It’s just been too hard to start up a business or keep a business in business with all of the regulatory actions and higher taxes that are threatened by Washington.’ ”
Today In History: In April 16, 1940, the Cleveland Indians’ Bob Feller pitched his first no-hitter against the Chicago White Sox. He went on to throw two more no-hitters in his career; only two other pitchers in baseball history have recorded more no-hitters. Nolan Ryan holds the record for most no-hitters, with seven. Sandy Koufax had four, while Cy Young and Larry Corcoran, along with Feller, recorded three in their pitching careers.
Birthdays: Rep. Cliff Stearns, Pope Benedict, Kareem Abdul-Jabbar, Charlie Chaplain, Wilbur Wright and Doug Heye
Here is what’s in today’s Ledger …
State Of Play: House Republicans Move To Cut Taxes For 22 Million Small Business Job Creators
Speaker Boehner The Small Business Tax Cut Act Gives Small Businesses “A Much-Needed Infusion Of Capital.” “In the Pledge to America, Republicans promised to allow small business owners to take a tax deduction equal to 20 percent of their business income. The Small Business Tax Cut Act makes good on that pledge, and will give more than 22 million small businesses with fewer than 500 employees a much-needed infusion of capital. “The Small Business Tax Cut Act has broad support among small business groups, franchisers, health care professionals, and small-scale manufacturers. One small business owner who testified to Congress in support of the bill said, ‘The best way Washington can help energize economic growth is by making sure business owners are spending less on tax payments and more on creating jobs.’ Another said it ‘is a great way for business owners … to help jumpstart our economy.’ Facebook
Leader Cantor: The Contrast Couldn’t Be More Clear: Democrats Want To Raise Taxes, Republicans Want To Cut Taxes For Small Business Job Creators. Republicans, who are touting a tax cut to help boost the bottom line for small businesses. In another corner are Democrats who want to make sure the wealthy are paying their fair share — as a matter of tax fairness and to relieve the burden on the middle class. … “I couldn’t think of a more direct contrast with the Democrats believing that you ought to raise taxes,” House Majority Leader Eric Cantor (R-Va.) told POLITICO, comparing the “Buffett rule” with his own tax cut designed for small businesses. … In an interview, Cantor dismissed the Democrats’ arguments. “I just find it hard to understand why I should have to go home to a small business owner and tell her that we’re not going to allow her to benefit from a tax cut … just because someone else who may have a benefit is also using that benefit,” the Virginia Republican said. The public is “overwhelmingly receptive to the idea that finally, finally, Washington seems to be listening to the cry of small businesses,” Cantor added. “It’s just been too hard to start up a business or keep a business in business with all of the regulatory actions and higher taxes that are threatened by Washington.” Politico
Republicans Move To Cut Taxes For Small Business Job Creators, Democrats Call For Higher Taxes. In the House, Republicans on Thursday are bringing to the floor a 20 percent tax cut for small businesses that Majority Leader Eric Cantor (R-Va.) has championed. Across the Capitol, Senate Democrats are planning a Monday vote on the so-called Buffett Rule, which sets a minimum tax rate for individuals with incomes of $2 million or more and phases that rate in for incomes between $1 million and $2 million... “This is a simple, straightforward proposal that uses a common definition for what is a small business,” the chairman of the House Small Business Committee, Rep. Sam Graves (R-Mo.), said in an email. “Washington shouldn’t pick winners and losers, and to try to carve out every business and industry that the bill’s opponents have a beef with is the type of thinking that has made it so hard for American small businesses to comply with the nearly 70,000 pages of tax code.” The Hill
• Former NYT Editor Says POTUS Sounds “Desperate” When Talking About The Buffett Rule. The problem is that when Obama thrusts these populist themes to the center of his narrative, he sounds a little desperate. The New York Times
Leader Cantor: We Want Job Creators To Have More Money In Their Pockets So They Can Make Decisions About Growing Their Business and Hiring More Employees. "We want small-business people to have more money go to their pockets, not the government's," Cantor said recently at a Virginia high school. "And then they have more money to make decisions about hiring, about retaining jobs and about creating more jobs." The Associated Press
• Chamber: If President Obama Is Serious About Growing The Economy He Should Stop Threatening Small Businesses With Higher Taxes. 95% of American businesses pay their taxes under individual income tax rates. These businesses employ more than half of our workforce. Letting the 2001 and 2003 tax rates expire would punish America’s most successful entrepreneurs and kill jobs. Politico
State Of Play (2): The Majority Of Americans Overwhelmingly Support Leader Cantor’s 20% Small Business Tax Cut
How Leader Cantor’s 20% Small Business Tax Cut Works – The Small Business Tax Cut Act is a simple, clear solution to help small businessmen and women grow their businesses and hire new workers. The Small Business Tax Cut Act will allow small businesses with fewer than 500 employees to take a tax deduction equal to 20% of their active business income, irrespective of how the small business is organized. Our 20% small business tax cut goes straight to the bottom line so small business owners can retain more capital, invest in their businesses and create more jobs. Read More HERE
Poll: 80% Of Americans Support Leader Cantor’s 20% Small Business Tax Cut. McLaughlin
• Once Fully Implemented, Over Time The 20% Small Business Tax Cut Will Create More Than An Average Of 100,000 Jobs Per Year.
• One Third Of The Firms Directly Benefiting From The 20% Tax Cut Are Owned By Women
• One Fifth Of The Firms Directly Benefiting From The 20% Tax Cut Are Minority Owned
• The Cantor Small Business Tax Cut Act Would Help Middle Class Workers Even More Than Small Business Owners. Workers Would Receive More Than Two-Thirds Of The Added Private Sector Benefits.
Leader Cantor’s 20% Small Business Tax Cut Will Help Provide The Certainty Small Business Owners Need To Invest, Expand and Hire More Workers. Just like anyone making a decision on whether or not to invest in something, they want to know the rules, the cost and the return. In other words, they want to know what regulations they will face, how much it will cost to produce their product, and whether there will be customers to purchase their product. Small business owners cannot invest in their business and hire more employees in good faith if they do not have some measure of confidence in the answers to these simple questions. St. Joseph News Press
Nearly Two-Thirds Of Americans (65%) Believe There Should Be A Moratorium Prohibiting New Federal Regulations and Red Tape On Businesses, Except For Workplace Safety And Emergencies, Until Unemployment Has Gone Down To 7%. McLaughlin
Small Business Chair Sam Graves: Onerous Federal Regulations Are Have A Disproportionate Negative Impact On America’s Small Business. Solid predictions become even harder to make when our nation’s out of control federal spending remains unchecked, the implementation of the health care reform law is unclear, and the prospect of greater federal regulations threatens to make doing business harder and more expensive. This uncertainty creates doubt across the economy as a whole, making it more difficult for companies to find willing customers. A Gallup poll of small business owners last fall listed the three biggest problems facing small business as: government regulation (22 percent), consumer confidence (15 percent) and lack of consumer demand (12 percent). A real commitment to reining in government regulation and a serious plan to tackle the federal budget deficit will go a long way towards giving small businesses the steady ground they need to succeed and grow their business. St. Joseph News Press
The Road Ahead
Speaker Boehner, House GOP To Press President Obama, Senate Democrats On Job Creation, Energy Security and The Negative Impact Of High Gas Prices. “Gas prices have doubled on President Obama’s watch, and the American people are asking why he and Senate Democrats are blocking more American energy production,” Boehner said in a statement. “Whether the president joins us or not, we will continue to fight for common-sense solutions that lower gas prices and create new jobs.” Republicans believe that the winter surge in energy costs — the average price of a gallon of gas jumped nearly 70 cents, to about $3.90, from late December to mid-April — provides them with a political opening to go on the offensive against Obama. … Now, Winston said, “there is a real economic dynamic that didn’t exist then.” His most recent poll, which is being distributed to Boehner’s GOP conference, shows that congressional Republicans hold a seven-point edge, 48 percent to 41 percent, over Obama on how they are handling the energy issue. More importantly, independent voters side with Republicans, 47 percent to 32 percent, by a wider margin. So long as Republicans can connect the gas price issue to the broader economy, they have an edge over Democrats, particularly because voters appear to favor a two-pronged approach of more drilling now and pushing for alternative energy sources for the future, Winston said. “There’s a much more realistic sense of we’ve got to meet present energy needs.” The Washington Post
• Chairman Upton: Democrats In Washington Need To Stop Creating Artificial Obstacles To Energy Security and Job Creation. Rep. Fred Upton (R-Mich.), chairman of the House Energy and Commerce Committee, pitched his legislation to stop new regulations on refineries in Saturday’s GOP response to the weekly presidential address — the seventh such GOP response in the last eight weeks to discuss gas prices. He called lower gas prices “essential to job creation and economic recovery.” “We’re knocking at the door of a brighter energy future; one that promises abundant, secure and cheaper North American supplies, as long as Washington doesn’t create artificial obstacles,” Upton said. “That is what Republicans are working toward, and we invite the president to join us.” The Washington Post
Low Income Americans Have Grown Increasingly Discontent Under President Obama’s Watch. Gallup asks Americans to say whether they consider what they pay in income taxes to be fair, and, consistent with recent years, close to six in 10 call their taxes fair. Public acceptance of one's tax burden as fair … also increased significantly after Bush's tax cuts took effect … Lower-income Americans grew significantly more discontent with the amount they pay in taxes between 2009 and 2011 … Perhaps because of the slow economy, or because of recent discussion of the "Buffet Rule" and President Barack Obama's related interest in shifting a greater proportion the nation's tax bill to high-income Americans, low-income Americans have grown increasingly discontent since 2009 with the amount and fairness of their own taxes. However, there has been no comparable shift in middle- and upper-income Americans' views. Gallup
Add It To The Broken Promises List: ObamaCare Projected To Increase The Deficit By At Least $340 Billion. How much will Obamacare -- call it the Patient Protection and Affordable Care Act if you like -- cost over the next 10 years? More than you've been led to believe, reports Charles Blahous of George Mason University's Mercatus Center. To be specific, he projects it will add $1,160 billion to net federal spending over the next 10 years and at least $340 billion to federal budget deficits in that time. … The government can't spend the same money twice. Medicare tax revenues dedicated to current Medicare spending can't be used to reduce the budget deficit. That's true "in practice," Medicare chief actuary Richard Foster wrote last year, despite the CBO's scoring procedure. … And, as Blahous points out, if the funds don't go to Medicare, then under current law, Medicare will go broke faster and be forced to reduce benefits. Since Congress is not likely to let that happen any sooner than it has to, the deficit reduction promised by the CBO score and claimed by the Obama administration simply ain't going to happen, no how, no way. Real Clear Politics