Small businesses continue to face an uphill climb against high tax burdens and the threat of even higher taxes coming from the President and Senate Democrats. The House is voting today on the Small Business Tax Cut Act to give small businesses a 20% tax cut to help them hire new workers and expand their businesses. Our bill sends a strong signal to small businesses that House Republicans are listening and working to reduce the burdens they face. Over four-dozen of organizations from every sector of the economy are asking Congress to pass this tax cut. The National Association of Home Builders says the 20% tax cut will help the small-scale entrepreneurs who drive the homebuilding industry to hire new workers. The American Supply Association says this bill helps address the challenges facing family-operated businesses by reducing their tax burdens, and the National Franchisee Association says this bill gives franchisees more revenue to reinvest in their businesses, allowing them to create jobs in their communities. The Small Business Tax Cut Act provides real tax relief to small businesses and we hope the other side can join us to pass this bill.
Today In History: In 1897, the first Boston Marathon is held. John J. McDermott of New York ran the 24.5-mile course in a winning time of 2:55:10.
Birthdays: Tim Curry, Maria Sharapova, Kate Hudson, James Franco,
Here is what’s in today’s Ledger …
State Of Play: House To Vote On Leader Cantor’s 20% Small Business Tax Cut Today
Leader Cantor: If We Are Going To Get People Back To Work, The Focus Must Be On Boosting Small Business. “If we’re going to get people back to work, we’ve got to help the job engine that produces those jobs -- which are small businesses,” said Cantor, a Virginia Republican. … The vote is slated to be the second this week intended primarily to emphasize the parties’ differences on taxes. Senate Democrats demanded a vote on the Obama administration’s Buffett rule proposal, which would impose a 30 percent minimum rate for taxpayers earning $2 million a year and more. Bloomberg
Steve Forbes: Majority Leader Cantor’s 20% Small Business Tax Cut Will Allow More Small Businesses To Keep More Of What They Earn To Invest and Hire More Workers. Conservative publisher Steve Forbes, who has famously advocated for a flat tax, voiced support for the measure in a conference call hosted by Cantor. “Not only does it allow smaller businesses to keep what they earn, it reduces the price of risk-taking, reduces the price of achieving success, which induces people to raise more capital and put more capital to work,” Forbes said. “This is an important step and should clear the hurdles this year,” he added. The Washington Post
Week In Review: Senate Democrats Are Trying To Raise Taxes, House Republicans Want To Lower Them To Promote Growth. "While the Senate is raising taxes, we want to be cutting them," a House leadership aide tells me. House Majority Leader Eric Cantor has already announced his intention to prevent the Buffett tax from coming to a vote in the House. … The House tax cut is consistent with the Paul Ryan budget, which would cut the top income tax rate to as low as 25%. Mr. Cantor says the GOP bill would help "22 million small businesses" retain their capital, and he points to a Joint Tax Committee analysis that certifies that conclusion. Under the new law, the lower rate would apply whether a business pays taxes as a corporation, partnership or sole proprietorship. The Wall Street Journal
Rep. Pete Sessions: Democrats Seem To Think We Can Tax Our Way To A Better Economy. House Republicans took the tax debate to their own venue Thursday, when the chamber began debating a tax cut backed by House Majority Leader Eric Cantor (R., Va.) The measure would cut taxes on businesses with fewer than 500 workers. Republicans have been touting the one-year tax cut as a way to help small businesses create jobs. It is expected to pass and then die in the Democratic Party-controlled Senate. "Given an opportunity, small business wants to grow and they want to add employees," Rep. Pete Sessions (R., Texas) said in a Thursday debate on the House floor. He also said that "congressional Democrats think that we can tax our way to improving our economy. It's really simple logic: increasing taxes on job creators will not help create jobs." Dow Jones
Fast Facts On Leader Cantor’s 20% Small Business Tax Cut
• 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.
• One third of the firms directly benefiting from the Act are owned by women and one fifth 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. The plan would return to middle-class private citizens $4.30 for every $1.00 of actual government revenue loss.
• The Small Business Tax Cut Act would lead to a reduction in prices for the products and services sold by these businesses, helping families and increasing demand and sales.
• Once fully implemented, over time the 20% small business tax cut will create more than an average of 100,000 jobs per year.
Americans For Tax Reform: Majority Leader Cantor’s 20% Small Business Tax Cut Will Lower The Rates and allow Small Biz To Expand and Hire More Workers. H.R. 9 creates a new effective top tax rate of 28 percent on small and mid-size firms. By cutting their top rate from 35 to 28 percent, H.R. 9 recognizes that hiring and investment decisions in businesses are made at the margin. When the marginal tax rate on profits is reduced, it encourages firms to expand production, hire new staff, and engage in new business ventures.
National Association of Home Builders: The Small Business Tax Cut Act Will Help Small Entrepreneurs Grow Their Businesses and Create Jobs. On behalf of the more than 140,000 members of the National Association of Home Builders (NAHB), I am writing to express our support for H.R. 9, the Small Business Tax Cut Act. As an industry dominated by small entrepreneurs—the median NAHB home builder member has 4 employees, constructs 3 homes per year, and reports less than $1 million in gross receipts—NAHB urges the House to approve the bill … The Small Business Tax Cut Act will help our members grow their businesses and create jobs.
International Franchise Association: The 20% Small Biz Tax Cut Is “Critical” For Small Business Owners Making Decisions Regarding Expansion and Hiring Additional Workers. "The short-term tax cut put forth in this bill is critical to franchise owners making decisions about hiring additional workers or expanding their businesses today," said IFA Senior Vice President for Government Relations & Public Policy Judith Thorman
National Council of Chain Restaurants: The 20% Small Biz Tax Cut Will Allow Small Business Owners To Grow and Expand. “The National Council of Chain Restaurants is pleased to support the Small Business Tax Cut Act. “This legislation would provide a helpful boost to the economy at this critical stage and help America’s job creators – our small business owners – grow and expand their operations. The chain restaurant industry is a key provider of jobs, training and opportunity for millions of Americans.”
• See A More Complete List Of Support For Majority Leader Cantor’s 20% Tax Cut For Small Business Job Creators ------ HERE
The Road Ahead
President Obama’s Failed Economic Agenda Casts A Tall Shadow Of Pessimism – Nearly half of Americans - 47 percent - say things will get worse for the next generation - including a whopping 57 percent of parents with kids over age 18, many of whom are struggling to find jobs. Just one in four say things will be better for the next generation, suggesting that Americans do not see a world in which they can easily make a better life for their children then the one they had. CBS News
Roughly Twice As Many Americans Have Fallen Behind Under President Obama’s Irresponsible Stewardship Of The Economy. CBS and The New York Times also found that roughly twice as many people believe that, over the last two years, they’ve fallen behind in the economically instead of getting ahead. The Hill
Over Three Years Into The Obama Administration … 70% Of Americans Say The Economy Is In Bad Shape New York Times/CBS Poll
CONTRAST: House Republicans Continue To Act On Their Vision, While Senate Democrats Refuse To Put Their Own Vision On The Table. this week’s events should lead to a particular conclusion about the sources of that gridlock: House Republicans have proposed and passed a budget, the chairman of the Senate budget committee sought to propose one of his own, but the Senate’s Democratic leadership preferred inaction instead. That is in fact how essentially all of the “gridlock” of the 112th congress has happened, and it is not properly described as gridlock but as Democratic dereliction. Republicans have put their views and proposals on the table, and Democrats have been afraid to do the same and so have offered nothing but vitriol. National Review
Senate Democrats’ Take A Pass On Budgeting To Give Cover To Obama’s Failed Policies. Households make budgets. So do businesses and nonprofits. There was also a time when Congress made them, but those days are long gone -- 1,086 days gone, to be precise. That's the last time Democrats, who have controlled one or both houses of Congress this whole time, passed a budget resolution through either the House or the Senate. … It is no coincidence that the Democrats' failure to pass a budget began immediately after Obamacare became law. In order to hide its $1.7 trillion price tag and $500 billion in tax increases through 2022, Democrats had already exhausted every last budgeting gimmick. As a result, they had no further tricks up their sleeve to pay for the rest of their spending priorities without voting on the massive tax increases that Conrad's new budget contained -- $2.6 trillion, and not just on the rich. The Washington Examiner
House GOP Targets “Untouchable” Mandatory Spending. The Financial Services Committee, one of four that held markups on Wednesday, passed a bill that would save $35 billion over 10 years - $5 billion more than required. “The spending cuts in sequestration on our defense will devastate our national security,” Chairman Spencer Bachus, Alabama Republican, told The Washington Times. “That’s our motivation, as well as the debt crisis. Our debt situation is like a stick of dynamite - it could go off at any time.” The committee’s proposed waste reduction comes with side benefits, such as ensuring taxpayers are no longer forced to bail out private creditors. “We codified ‘too big to fail’ in Dodd-Frank,” Rep. Jeb Hensarling, Texas Republican told The Washington Times. “Ending it is important for the $22 billion in savings, but it’s more important to market discipline, as opposed to the crony capitalism and bailout mania that is represented by Dodd-Frank.” The National Flood Insurance Program would also be reformed so that premiums are based on risk, saving $4.9 billion. The Washington Times