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Ms. JACKSON LEE of Texas. I thank the gentleman for his leadership, and I thank the full Committee on Ways and Means for being a lifeline for small businesses. And I ask my colleagues on the floor of the House to join them.
Without this effort, small business doors across America will close. And, frankly, I believe it is important. As my colleague just said, let us walk the walk and talk the talk. For it is now time to invest in small businesses, which, in actuality, create the backbone of the economy of America and provide for employment in our rural and urban areas across this Nation. In fact, I think it is important to note this bill is paid for. By closing the black liquor loophole and the gift loophole, it will create $8 billion to ensure that we can do the right thing for our small businesses.
I come from an area that is now being impacted by a major oil spill. I visit businesses whose doors are closing for lack of assistance. And I'm glad that we have a President who realizes who is important and is ready to sign this bill.
Small businesses are in need. And so what we have here is an opportunity for banks to refocus their lending policies and give startup credit and access to dollars to help build these small businesses.
Many of us heard of the redirection of the moneys that we lent to big banks in order to help them help America. Well, unfortunately, they couldn't find the doors of small businesses, many of my constituents. And so I am eager to have this legislation passed that's paid for to provide startup costs for small businesses that always have had a major impediment in getting in the door of these banks. Therefore, any relief for small startups is a plus by increasing the amount allowed to be deducted from the bottom line. And the capital gains issues as well that will be very important.
I believe, finally, we need to hold these banks accountable by asking them to provide a plan to ensure that they are providing lending to these businesses. I ask for support of this legislation.
I rise in support of the Small Business Jobs Tax Relief Act of 2010, H.R. 5486. I also want to thank Chairman SANDY LEVIN and the members of the Committee on Ways and Means for their hard work on this legislation. The bill amends the Internal Revenue Code of 1986 to provide tax incentives for small business job creation, and for other purposes.
This bill provides targeted relief for the Nation's small businesses. Without this relief, many small businesses will close, adding to the U.S. unemployment rate, still historically high at 9.7 percent. The tax relief in this bill will begin to address a number of issues confronting the owners of small businesses:
(1) Start-up costs for small businesses have always been a major impediment to their success. Therefore, any relief for small businesses start-ups is a plus. By increasing the amount allowed to be deducted from the bottom line, a small business can then use the additional resources to grow and to expand his or her business. The bill would increase the deductible amount for start-up costs from the current $5000.00 to $20,000.00 for 2010 and 2011.
(2) The bill also eases restrictions on real estate holdings where qualified Small Business Investment Company (SBIC) loans are involved.
(3) This bill will increase, from 50 percent to 100 percent, the exclusion from gross income of the gain from the sale or exchange of qualified small business stock acquired after March 15, 2010, and before January 1, 2012. By reducing the tax liability related to gains on the sale of small business stock, this will free resources to be used for other business purposes in this tight economy.
(4) Another important provision in the bill will exclude from gross income any amount paid under the small business borrower assistance program. Again, tax relief in any shape or form for small businesses is critical to sustained economic growth and economic recovery.
In addition to these tax reliefs, the bill also requires the Commissioner of the Internal Revenue to provide annual reports to Congress on penalties relating to tax shelters and other transactions. Any additional measure designed to promote transparency and accountability must be supported. Again, this bill is a timely measure that will grant relief to a major segment of the Nation's business sector, suffering from the lasting effects of the worst recession in our history. I urge my colleagues to support H.R. 5486.
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