Congressman Mike Fitzpatrick provided real tax relief to Pennsylvania small businesses this afternoon with his vote for H.R. 9, the Small Business Tax Cut Act of 2012.
"Small business is what drives our economy here in Pennsylvania," said Fitzpatrick. "Over the last 17 years, businesses with less than 500 employees have created 65% of the new jobs in the United States. This legislation will allow these business men and women to retain more capital, invest in their business and create jobs. As the Administration continues to divide Americans with gimmicks and grandstanding, legislation like this puts money back into the hands of employers to hire people."
Under the new rules created by H.R. 9, small businesses which employ less than 500 people would be allowed to deduct 20% of their income from taxes irrespective of how they are organized. This means that both small businesses organized as corporations and the 75% of small businesses which operate as a pass-through will benefit from this new deduction.
The non-partisan Joint Committee on Taxation has estimated that H.R. 9 will benefit over 22 million small-business employers across the United States by reducing their taxes by almost $46 billion, leaving more capital for those businesses to apply to expansion and hiring.
Small Business in PA Facts:
As of 2009, there are 228,800 small businesses with between 1 and 500 employees employing 2,445,200 individuals
Over 388,000 employees in healthcare and social assistance
Over 277,000 employees in manufacturing
Over 259,000 employees in accommodation and food services
30,076 are women-owned businesses which employ 251, 622 individuals
In 2009, PA was home to 661,430 sole-proprietorships, many of which will benefit from H.R. 9