Summary

A bill to provide a temporary income tax credit for increased payroll and extend bonus depreciation for an additional year, and for other purposes. Read More

Status

This bill was introduced on Mar 27, 2012, in a previous session of Congress, but was not passed.

Bill Text

This bill text has not yet been received from the Government Printing Office.

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Nation

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State: CA

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District: 1st

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Popularity Trend

Organizations Supporting

6.1.2012 Our nation’s smallest businesses—those with 1-49 employees—continue to outpace large businesses in the race to put America back to work. Businesses with fewer than 50 employees created more than half of all new jobs last month, and, from April to May, they boosted the actual number of jobs they generated by 16 percent, according to data released Thursday by Automatic Data Processing, Inc (ADP). Small businesses overall accounted for more than 93 percent of all new jobs last month, while large businesses created just 6.8 percent of new jobs. These figures underscore the starring role small businesses have in helping lower the unemployment rate, and they’re a reminder that the smallest firms are our country’s primary job creators. These businesses can and will put our economy back on track, but they can’t do it singlehandedly. Legislators must continue pursuing pragmatic economic policies that ensure entrepreneurs have they tools they need to keep rebuilding the economy. We suggest: - Calling on the Federal Deposit Insurance Corporation (FDIC) to issue bank charters that would supply small firms with more credit. The agency has not issued a single charter this year, despite the dismal lending landscape entrepreneurs continue to face: our national opinion polling found 90 percent of small business owners view credit availability as a problem. - Passing the Small Business Jobs and Tax Relief Act, which would promote small business job creation by providing a 10 percent income tax credit for increased payroll in 2012 while also extending the 100 percent expense deduction for equipment that lowers owners’ after-tax costs. - Extending the Production Tax Credit for wind project development, as it supports 37,000 jobs that would be at risk if the credit expires. Not only would extending this credit protect existing jobs, small business owners also indicate it could help generate new jobs: 7 in 10 small business owners believe government investments in clean energy play an important role in boosting the economy and creating jobs now. With ADP’s latest data highlighting small businesses as invaluable assets to the economy, it’s clear we must support them with pragmatic solutions that address their greatest concerns. We encourage lawmakers to pursue robust policies such as those listed above, as failing to do so would only hamper our fiscal recovery. http://www.smallbusinessmajority.org/news-and-events/press-room-view.php?id=184

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The Administration strongly supports Senate passage of S. 2237 to give small businesses a tax break for increasing wages, creating new jobs, and making new investments. By providing targeted tax relief to the businesses that are expanding their workforce and making new investments in capital, S. 2237 will help spur economic growth and job creation and strengthen the recovery. Targeted tax relief for small businesses is one of the five to-do items the President has called on the Congress to pass as part of a concrete plan that creates jobs and helps restore middle class security. Under S. 2237, nearly two million companies that make new hires or increase wages would receive a 10 percent income tax credit on their new payroll, encouraging over $200 billion in new hiring and pay raises. Because the credit is limited to $5 million in new wages (for a credit of up to $500,000 per firm), S. 2237 is particularly beneficial to small businesses. S. 2237 is also focused on middle class workers. Because the credit is based on the Social Security wage base, companies would receive no credit for increasing wages above $110,100. The Congressional Budget Office recently found this type of targeted tax relief to be the single most effective business tax option for boosting hiring and spurring economic growth. S. 2237 would also put an additional $50 billion in the hands of businesses over this year and the next by extending the 100 percent expensing provision that the President signed into law in December 2010, which rewards firms for making new investments by allowing them to immediately deduct the full value of those investments in calculating their taxable earnings. S. 2237 provides a direct incentive for companies to hire workers and make the sorts of investments that will boost economic growth. In addition, this legislation ensures that companies that are actively cutting their workforce or that offer raises only to already well-paid executives would be ineligible for the tax relief. The President believes that entrepreneurs and small businesses are engines of innovation and economic growth and are currently at the forefront of the Nation's economic recovery. The proposals in S. 2237 build on the 18 small business tax cuts that the President has already signed into law, ranging from the small business health tax credit to the temporary tax exclusion of capital gains from key small business investments. Congress should act now to help American small businesses hire and grow with targeted tax relief designed to boost jobs, rather than enacting additional costly tax cuts for the most fortunate. http://www.whitehouse.gov/sites/default/files/omb/legislative/sap/112/saps2237s_20120710.pdf

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The Administration 2 years ago

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Bill Summary

A bill to provide a temporary income tax credit for increased payroll and extend bonus depreciation for an additional year, and for other purposes.

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