On Tax Day, the good news is the Senate rejected a tax hike yesterday. The better news is House Republicans are cutting taxes to boost small business job creation. On Thursday, the House will vote on the Small Business Tax Cut Act to give small businesses a 20% tax deduction. A Fiscal Associates study shows the Small Business Tax Cut helps create more than 100,000 new jobs a year once fully in place, directly benefitting 22 million small businesses of which one third of which are women-owned and one fifth are minority-owned. The Washington Times editorial clarifies the contrast between the benefits of the Small Business Tax Cut and the harm of President Obama’s tax hike plan, “For the three-quarters of small businesses who file as individuals, this deduction would encourage them to hire now, despite next year’s uncertainty. When current tax rates expire on Dec. 31, Mr. Obama wants to hike taxes on any profit over $200,000 to almost 40 percent.” President Obama has called small businesses the “anchors of our Main Streets" and we hope he and his party will join us to provide lower taxes and higher growth to our nation’s small business job creators.
Today In History: In 1964, the Ford Mustang, a two-seat, mid-engine sports car, is officially unveiled by Henry Ford II at the World’s Fair in Flushing Meadows, New York. That same day, the new car also debuted in Ford showrooms across America and almost 22,000 Mustangs were immediately snapped up by buyers.
Birthdays: Sean Bean, Jennifer Garner, Boomer Esiason, and Victoria Beckham
Here is what’s in today’s Ledger …
State Of Play: House Republicans Go On Offense For Job Creators
Leader Cantor’s Small Business Tax Cut Will Create Nearly 200,000 Jobs and Boost GDP By Over $100 Billion. Until they have a partner on tax reform in the White House, the best the GOP can do is provide short-term relief. On Thursday, the House will vote on Majority Leader Eric Cantor’s bill to give companies with fewer than 500 employees a 20 percent tax cut to spur the economy for the 2012 tax year. For the three-quarters of small businesses who file as individuals, this deduction would encourage them to hire now, despite next year’s uncertainty. When current tax rates expire on Dec. 31, Mr. Obama wants to hike taxes on any profit over $200,000 to almost 40 percent. The one-year deduction would also benefit companies that file corporate taxes. They pay a high of up to 35 percent now, exceeding the developed world’s 25 percent average. According to an analysis by Fiscal Associates, the GOP plan would create 194,000 jobs and boost gross domestic product by $112 billion. That prospect gives voters an important choice in November. They can take a path of lower taxes and more growth, or they can make Tax Day 2013 more painful for everyone. The Washington Times
MUST WATCH VIDEO: Rep Marsha Blackburn Explains How Leader Cantor’s 20% Small Business Tax Cut Will Boost Economic Growth and Job Creation. … Look at the small businesses we have in Tennessee. We have 96,000 small businesses and another 418,000 individuals that file as sole proprietors. They would all benefit from having the opportunity to have a lower tax rate. I don't run into people saying I want to be part of the ‘tax me more club.’ I run into people who say it is regulation, taxation, litigation that is costing us when it comes to creating jobs. What we have to do is lessen that burden and have Washington get its out of control spending under control. MSNBC’s Daily Rundown
State By State Impact – Cantor’s 20% Small Business Tax Cut Will Benefit Over 22 Million Small Business Job Creators Across the Country:
• 146,863 Small Businesses In Virginia
• 173,284 Small Businesses In Michigan
• 228,800 Small Businesses In Pennsylvania
See How Many Job Creators In Your State Will Benefit From Leader Cantor’s 20% Small Business Tax Cut HERE
Analysis – The “Small Business Tax Cut Act Is Definitely A Step In The Right Direction.”
• The Cantor plan would lower tax rates on millions of small businesses, from mom and pop stores to small manufacturing and service companies, allowing them to invest, expand, and hire workers.
• 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.
• Over time the plan would yield $112 billion more in GDP, create 194,000 jobs, and lead to a 2.24% increase in business capital. Our cost benefit analysis shows that this increased economic activity and growth would offset much of the government revenue loss.
House Republicans Fight To Give Small Business Job Creators A Tax Cut, While Democrats Attempt To Raise Taxes. The GOP-run House plans a Thursday vote on legislation providing a 20 percent tax deduction for businesses that employ fewer than 500 workers, which covers 99.9 percent of all companies. The proposal, sponsored by House Majority Leader Eric Cantor, R-Va., seems certain to pass … Republicans believe the business tax measure will spotlight their efforts to lower taxes and create jobs, contrasted with Democrats' preference for higher taxes to finance ever-larger government. They believe they will win the debate by keeping the focus on those subjects … The Associated Press
Regulatory Row: 80% Of Small Businesses Say President Obama and Senate Democrats Are Making It More Difficult To Grow Their Business and Hire More Employees
Memo To Democrats In Washington – 80% of small businesses surveyed report the taxation, regulation, and legislation from Washington make it harder for their business to hire more employees. US Chamber
Small Biz Chair Sam Graves On The Chamber Survey: If Numbers Like This Don’t Get President Obama’s Attention, I Don’t Know What Will. House Small Business Committee Chairman Sam Graves (R-Mo.) called the survey a Washington wake-up call. "If this doesn't get the President's attention, I don't know what will," he said in a statement. "I hear from small businesses every week about the burdens that are preventing them from growing and hiring. Last month’s poor unemployment report, coupled with surveys like this, should serve as yet another reminder to Washington that we still have work to do to help provide an environment for a strong recovery." He also used the survey to tout House Republican efforts to push a small business tax cut set for consideration. The measure, which would offer a 20 percent tax cut to businesses with less than 500 employees, is set for a floor vote Thursday, and Graves called on Democrats and the White House to support it. The Hill
• Only 20% Of Small Businesses Surveyed Have Hired In The Past Year. While small business confidence is increasing, with a 7% increase in the confidence of the economy since January, hiring has remained stagnant. Q1 saw a slight increase in the number of small businesses who have lost employees in the last year (30%). Nearly half of small business respondents (49%) have kept the same number of staff, and only 20% have hired in the last year.
• Regulatory Concerns Are The Highest They’ve Been In The Past 12 Months – 52% Of Small Businesses Cite Over-Regulation As Their Top Concern. Concerns about over-regulation are the highest we’ve seen in the past year, with 42% of small businesses citing it as a major concern and 52% citing regulations as the top threat to their business, increasing 9 percentage points since last June.
• 78% Of Small Businesses Believe President Obama Hasn’t Done Enough To Increase Domestic Energy Production and Support American Job Creation. There are real concerns about rising energy prices—and no sense that the administration is doing much about it. The perceived threat of gas prices on small businesses has more than doubled, from 10% of respondents citing it as a top concern in January to 24% in March. Seventy eight percent think the Obama Administration has not done enough to keep prices low, increase domestic sources of energy, or support American job creation.
Dodd-Frank Burden Tracker: House Financial Services To Track The Negative Impact Of Dodd-Frank On Community Banks, Small Business Lending, and Job Creation. The House Financial Services Committee plans to release a new Web resource aimed at tracking the regulatory burden of the Dodd-Frank financial overhaul Congress passed in 2010. The “Dodd-Frank Burden Tracker” is set to measure how much of a negative effect the legislation will have. … Regulators have written only 185 of the expected 400 rules. But those 185 rules are expected to cost the private sector more than 24 million man-hours each year to comply. The tracker has also found that those 185 rules take up more than 5,300 pages. … “For example, let’s just get it down to the community banker — the person that loans money to most of the small businesses in our country,” Neugebauer said in a phone interview. “We’ve had a few community bankers come in here and say, ‘you know, they’re hiring a lot more compliance officer than they are loan officers.’ That is increasing the cost of banking and, ultimately, they have to charge higher interest rates and higher fees.” “The other thing that it impacts for our small businesses is because of some of the new rules and regulations, there’s a great deal of uncertainty about certain types of financial activity that some of these entities can engage in,” Neugebauer added. “I think that as these rules come out, what we’re trying to ascertain, and our committee has had a number of hearings on, is what the unintended consequences of some of these rules and regulations, but more importantly, just the sheer volume of them.” The Daily Caller
From The Department Of Regrets – Barney Frank: Democrats Made A Mistake, Should Have Backed Off Of ObamaCare Retiring Rep. Barney Frank (D-MA) says with the benefit of hindsight that Democrats should have slowed their push for health care reform in 2009 and 2010, to prioritize other issues, and paid a huge political price for their persistence. In so doing, he’s allowed Republicans to box in vulnerable Dems who voted for what ultimately became ‘Obamacare.’ “I think [President Obama] underestimated, as did Clinton, the sensitivity of people to what they see as an effort to make them share the health care with poor people,” Frank said in an interview with New York Magazine. I think we paid a terrible price for health care. I would not have pushed it as hard. As a matter of fact, after Scott Brown won, I suggested going back. I would have started with financial reform but certainly not health care.” Talking Points Memo
Nearly Three Quarters Of Small Businesses Cite ObamaCare As A Roadblock To Growth and Job Creation. Nearly three-out-of-four (73%) of small businesses surveyed cite the recent health care law as an obstacle to growing their business and hiring more employees. US Chamber