President Obama Announces New Proposal to Create Jobs, Cut Taxes for Small Businesses
In Baltimore, President outlines details of the Small Business Jobs and Wages Tax Cut will
WASHINGTON, DC – At the Chesapeake Machine Company in Baltimore, Maryland, President Obama announced details of the Small Business Jobs and Wages Tax Cut, one of his new proposals to create good jobs and bring relief to small businesses.
The Small Business Jobs and Wages Tax Cut will put more Americans back to work by giving businesses – particularly small business – a tax cut for new hiring. The new proposal will also provide tax incentives for businesses to expand wages for their employees. A full fact sheet is available HERE.
President Obama said, “Today, I am proposing what I believe is the best way to promote hiring by small businesses: through a tax credit for companies that add workers and increase salaries this year. Now is the perfect time for this kind of incentive. The economy is growing, but job growth is lagging. This is only one part of our larger jobs package, but it will be a key element to spur hiring and give all small businesses that participate significant tax relief.”
Treasury Secretary Geithner said, “America's small businesses are critical engines of job growth. But to play that role, they need some help. They need better access to credit from banks and tax relief from the government. This announcement provides such relief, giving small businesses incentives to put Americans back to work and increase the salaries of those currently working."
Small Business Administrator Karen Mills said, “We know that if we give small businesses the tools they need, they will create the jobs America needs. This tax cut is one of those tools, and along with the other tax incentives and plans for increasing small business lending the President has called for, it will help small businesses across this country take that next step to expand and create new jobs in their local communities.”
Small business leaders and leading CEOs join The Congressional Budget Office and independent economists in highlighting how the Small Business Jobs and Wages Tax cut will help put more people back to work and provide real relief for America’s small businesses.
Here are a few of their statements:
Statement of John Arensmeyer, CEO, Small Business Majority
"This economic crisis has hit small businesses particularly hard, leaving them unable to play the vital role they've always played in past recessions: creating the jobs that get the country back on its feet. President Obama's proposed jobs tax credits hit the mark. These tax credits are simple and straightforward, and will support small businesses to generate the jobs Americans so desperately need. And they'll start doing it now."
Women Impacting Public Policy Statement on Small Business Jobs and Wages Tax Cut
“Given the difficult economic environment under which small businesses have been operating for the past two years, tax relief is welcomed at any level. As we understand the President’s proposal, small businesses would be given a tax credit of $5000 for new hires and additional tax relief from the Social Security payroll tax for new hires or increased wages of existing workers.
“The most compelling part of the proposal is the ability to realize the tax savings on a quarterly basis. Every dollar that is not paid in tax goes toward making the business more profitable, or in many cases in this economy, keeps the business afloat. Tax incentives such as this are an investment in this country’s workforce and in the small businesses that make this country great. We urge Congress to adopt the President’s proposals as expeditiously as possible.”
Statement by Frank Blake, Chairman and CEO of Home Depot
“Small general contractors and pro firms are a significant part of our customer base; they’ve been hit hard in this recession; and this proposal should help.”
Statement of Rose Wang, CEO, Binary Group Inc
“We all know small business is the engine of our economic growth. I think this is a proven tool to incentivize entrepreneurs and business owners to continue to invest in their businesses and people.”
Statement by Mark G Heesen, President of the National Venture Capital Association
“The venture capital industry is supportive of the proposal put forth today by President Obama today to cut the payroll taxes of small businesses that create net new jobs. As active participants in the start-up ecosystem, venture capitalists work alongside of company founders and entrepreneurs each day with the shared goal of growing our country’s most promising businesses. The construct of the credit, which is based on payroll taxes, guarantees that our country’s seed and early stage companies – many which are pre-revenue -- will be in a position to benefit from this program. With these companies operating in high growth innovative sectors such as IT, life sciences and clean technology, such an initiative is positioned to best support economic growth.”
Statement from Matthew Shay, President & CEO of the International Franchise Association
“The new hire tax credit announced by the President today will be helpful as franchised businesses plan for growth this year. But we also urge the President and Congress to not back away from efforts to increase access to credit. Improving capital access for small businesses will lead to long-term, sustainable job creation and help spur economic recovery.”
Statement of B. Samuel Ko, Philos Technologies, Inc.
“I am extremely happy to hear that there will be a tax credit for small businesses creating jobs and wages. I definitely believe that this tax credit will be placed in the right moment where we see the economy seems to be coming back, incentivizing and stimulating small businesses to hire more people faster.
I am certain that this tax credit will certainly stimulate our decision to hire more people very soon.”
Statement of Richard Taylor, CEO of ImbuTec (Pittsburgh, PA)
"Demand is growing for the energy efficient lighting systems we manufacture and distribute, but because our industry is evolving rapidly, cash flows often lag behind the investments necessary to meet that demand. The President’s proposed $5,000 tax credit would provide meaningful short-term assistance to help us hire the workers we need to manufacture, sell and install our American-made, energy efficient technology.”