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Cutting Taxes for Small Businesses

Our political parties may disagree on some things, but we should all agree on helping small businesses thrive and expand.

The number one challenge facing our country is to create jobs and get our economy growing, and small businesses are the engine of job creation. Our political parties may disagree on some things, but we should all agree on helping these companies to thrive and expand.

This week, the Senate voted on the Small Business Jobs and Tax Relief Act, which provides tax breaks for companies that create jobs and invest in their business. This bill would give businesses that create jobs a Hiring Tax Credit equal to 10% of the increase in their payroll. This tax credit is capped at $500,000 per business, which targets the majority of the benefit to small businesses.

This bill would also allow companies that make major investments in their business to deduct the full cost of that investment on this year’s tax return. Normally, companies must spread this deduction over several years. This would encourage businesses to make investments now to get our economy moving – and cutting taxes for these businesses enables them to grow even more.

Both parties have supported these tax cuts in the past, and this is the bipartisan approach our economy needs. Unfortunately, this bill was blocked by Senate Republicans by a vote of 53-44. Even though it received majority support, we needed 60 votes to end the filibuster.

I’m disappointed that the Small Business Jobs and Tax Relief Act was blocked this week, but we will keep working hard to find common ground to get our economy moving. I’m hopeful that we’ll have more opportunities to help small business before the year is over.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Bren July 14, 2012 at 02:19 PM
It's a great idea for smaller businesses. So why was it blocked?
Greg July 15, 2012 at 02:58 AM
Why was the Republican bill blocked? Bren, didn't you take a stand against the idea when Governor Walker was facing recall? I think you thought it was ALEC sponsored corporate welfare, or something along those lines.
J. B. Schmidt July 15, 2012 at 03:22 AM
@Bren This was only for the tax year 2012. Considering the economy is showing no signs of life, this provides no incentive to hire a long term employee. In fact, it creates incentive to use the tax system through December 2012 and then unload the employee in 2013. Also, this is targeted at small business. You are getting a 10% tax credit on only the difference between the payroll you had in 2011 and 2012. Assuming your only increase between 2011 and 2012 was the addition of an employee, your only being credited 10% of that wage and compensation. That hardly makes smart business sense.
Nuitari (Grand Master Editor) July 15, 2012 at 12:15 PM
Worry about the Buck's payroll Herbie.
Steve ® July 17, 2012 at 05:49 AM
You soon will be replaced by common sense.

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