Mr. Speaker, we know jobs won’t come back until small businesses recover. Small businesses have generated over 65% of the new jobs in this country. But the economic downturn, red tape and higher taxes coming from Washington have simply made it harder for small businesses to create jobs.
Tax policies should encourage economic growth, investment and job creation – not stifle it. We need to stop and think about what kind of country we want to be: and do we want to be one with lower taxes, more growth and more jobs? Or do we want to be one of more government control and fewer opportunities?
This week, when every American filed their tax returns, the other party in the Senate voted to increase taxes. We should not be taking money out of the hands of those we are counting on to create jobs. We need to let small business owners keep more of their hard earned money so they can start hiring again.
Today, Mr. Speaker, we will vote on the Small Business Tax Cut Act to give every small business with less than 500 employees a 20 percent tax cut.
Our bill puts more money into the hands of small business owners so they can reinvest those funds to retain and create more jobs and grow their businesses. Plain and simple.
According to a study, the Small Business Tax Cut Act will help create more than 100,000 new jobs a year once fully in place. One-third of the firms that benefit from our tax cut are owned by women and one-fifth are owned by minorities. And, our legislation won’t just benefit small business owners, it benefits current workers by boosting wages.
Mr. Speaker, when I talk with small business owners across the country, I hear they need more opportunity to grow. I hear that taxes are siphoning away their income. I hear they can’t access capital.
One small business owner in Spotsylvania, Virginia called the Small Business Tax Cut a “win-win” for him and other small business owners in the economy. He said with more money to invest in his businesses, he could afford to hire more staff, buy new equipment and expand.
Mr. Speaker, while we continue to work toward tax reform that broadens the base, brings down the rates for everybody, and gets rid of loopholes where Washington assumes the role of picking winners and losers, we need to take incremental steps to give job creators tax relief right away. This Small Business Tax Cut Act is a step in that right direction.
President Obama called small businesses the “anchors of our Main Streets." We agree. I hope we can all unite around helping the small businesses, which are the engines of job creation in our country.
Mr. Speaker, I’d say in response to the gentleman’s assertion towards the definition of small business in this bill, this is the Small Business Administration definition of small business. This is what every program that comes out of this government aimed to help small businesses is premised upon. The S.B.A. definition of a small business is those of 499 or less.
As far as the gentleman's allegations about the potential for abuse under this bill, if he'd read the language of the bill, Mr. Speaker, it caps the ability to benefit from the tax cut to 50% of the W-2 wages that that small business pays out. This is straight up something to help small businesses keep more of their money while they're having so much difficulty keeping the lights on and gives them the ability to grow, invest and create more jobs.
As far as the gentleman’s allegations that somehow this bill only affects those millionaires, billionaires and the rest I think he will see studies have shown that just 18.3% are those people in the categories of income he suggests, with 80-some percent in the middle class, including the true small business owners that we are relying on to create jobs for the middle class to come back.
I would say to the gentleman as far as the allegation of gimmickry, the essence of supply side economics, the centrality issue of taxes is the reduction of marginal rates. That's what this bill does. Does it provide it for long enough? Does it provide permanency? No. But what we want to do in a permanent way is affect broader tax reform. But since we can't see eye to eye on that because we still got work to do, let's give the small businesses some help now.
House Majority Leader Eric Cantor (R-VA)
House Floor Remarks
April 19, 2012