KINGSTON ON PRESIDENT'S ANNOUNCEMENT: SMALL BUSINESS' TWO CENTS
At a White House press conference today, President Obama and Treasury Secretary Geithner announced a program to inject $15 billion into the small business credit market. While Congressman Jack Kingston (R/GA-1) praised long-awaited attention to small business, he criticized the plan's failure to address impending tax increases.
"This proposal is a step in the right direction but it's only a step when small businesses have lost a mile in this economy," Congressman Kingston said. "By my math, the $15 billion in aid announced today amounts to 2% of the $687 billion in tax increases unveiled in President Obama's budget the lion's share of which will fall on the shoulders of small businesses. In effect, for every dollar Washington takes away from small business, they'll get a whopping two cents back."
Under the President's proposal, the Treasury Department would purchase up to $15 billion in securities backed by the Small Business Administration (SBA). In addition, the program will waive borrower and lender fees on several SBA loan programs.
While Congressman Kingston sees the announcement as a step in the right direction, he noted that just last week President Obama proposed a total of $687 billion in tax increases. According to the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, over 3 million taxpayers with small business income will face higher taxes under the Obama budget outline. In addition, nearly two-thirds of those paying higher taxes under the Obama budget outline will be small business.
"I'm glad the President has turned his focus toward small businesses," said Congressman Kingston. "This is an overdue step in the right direction and I look forward to working with him to work toward additional job-creating tax credits such as accelerated depreciation, extending the capital gains tax cuts and small business expensing. In doing so, we'll give businesses the tax certainty with which they can invest in confidence."