WASHINGTON, D.C. – A new study released today conducted by Fiscal Associates shows that the Small Business Tax Cut Act, introduced by Majority Leader Eric Cantor (R-VA), would grow the economy and create hundreds of thousands of jobs. The House of Representatives will consider the legislation on Thursday.
Spokesman Brad Dayspring issued the following statement on behalf of the YG Network:
“It’s contrast week – the House Republican 20% Small Business Tax cut versus the Buffett Rule. Does President Obama care more about small business jobs or a gimmick that won’t help a single worker or create a single job? America faces serious challenges, and President Obama is not only incapable of solving them, he’s unwilling to even discuss them. Given the choice of Cantor’s small business tax cut for jobs or Obama’s ‘Buffett Rule for fairness,’ Americans choose jobs.”
“This study shows that the economy would get a boost from the small business tax cut, and businessmen and women would use the savings to hire new workers. We hope that leaders across the spectrum will support this common sense measure that would benefit all Americans.”
BACKGROUND: The Fiscal Associates study found that:
- Sun-setting income tax cuts, expiring temporary payroll tax cuts and spending measures, along with the impending sequester at the end of 2012 could send the economy into tailspin. In addition, President Obama proposes to raise taxes on millions of small businesses and working families and to enact a new minimum tax, the Buffett Rule.
- The Cantor plan would lower tax rates on millions of small businesses, from mom and pop stores to small manufacturing and service companies, allowing them to invest, expand, and hire workers.
- Over time the plan would yield $112 billion more in GDP, create 194,000 jobs, and lead to a 2.24% increase in business capital. Our cost benefit analysis shows that this increased economic activity and growth would offset much of the government revenue loss.
- Once fully implemented, over time the 20% small business tax cut will create more than an average of 100,000 jobs per year.
- The Small Business Tax Cut Act would lead to a reduction in prices for the products and services sold by these businesses, helping families and increasing demand and sales.
- One third of the firms directly benefiting from the Act are owned by women and one fifth are minority owned.
- The Cantor Small Business Tax Cut Act would help middle class workers even more than small business owners. Workers would receive more than two-thirds of the added private sector benefits.
- The plan would return to middle-class private citizens $4.30 for every $1.00 of actual government revenue loss.