Washington (PRESS RELEASE – May 8, 2010) — As the economy continues showing early signs of improvement, small business owners from a range of sectors called on lawmakers this week to help sustain the recovery through tax incentives that will encourage small firms to grow and hire new workers. Testifying before the House Committee on Small Business, entrepreneurs said targeted tax relief can be an important tool for stimulating job creation.
“Gross Domestic Product is climbing, consumer spending is on the rise, but, while it seems our economy has turned a corner, we still have a long way to go,” said Rep. Nydia M. Velazquez (D-NY), the Chairwoman of the Small Business Committee. “With the right tax incentives, small businesses will keep the momentum going, expanding their operations and hiring more workers.”
During the hearing, entrepreneurs praised the HIRE Act, which the House passed in March, offering tax credits to businesses that hire workers. Small business owners also noted that the American Recovery and Reinvestment Act, which was enacted last February, targeted $15 billion in tax relief to small firms. Among other initiatives, those changes helped entrepreneurs to purchase computers, vehicles, office space and make other investments in their businesses.
“When people think of the Recovery Act, infrastructure spending often comes to mind, but what they don’t always remember is that the largest portion of funding went toward tax cuts for small businesses and individuals,” Velazquez said. “We need to build on these initiatives and find ways to ensure our tax code is rewarding expansion and growth, rather than inhibiting it.”
The hearing also explored future proposals for small business tax help. As many dislocated workers consider launching their own businesses, lawmakers discussed how modifying the tax code can reduce startup costs for new businesses. With existing businesses still struggling against tight credit conditions, much of the hearing focused on how tax relief can give firms greater flexibility in raising capital. Witnesses and Members of the Committee also examined proposals that would generate consumer demand for small businesses’ services and products.
“The American entrepreneurial spirit has always helped lead us back to prosperity,” Velazquez said. “Small businesses are our best engine for job creation, and tax investments that bring customers back to Main Street businesses will help entrepreneurs succeed, putting Americans back to work in the process.”
Velazquez has authored H.R. 4841, the “Small Business Tax Relief and Job Growth Act,” legislation that would implement many of the changes discussed during the hearing. At the conclusion of the hearing, she promised to share the small business owners’ recommendations with her colleagues on the House Ways and Means Committee.
Follow the link to view video of the hearing — https://www.youtube.com/view_play_list?p=02EDE87CAAF41916More in: Small Business Growth