Congressman Tim Griffin (AR-02) issued the following statement after House passage of the Small Business Tax Cut Act (H.R. 9):
"Small businesses employ over 470,000 Arkansans and this legislation will make it easier for them to invest in their businesses and hire additional employees. Encouraging job creation in Arkansas, and across our Nation is my top priority, which is why I'm proud to support this important legislation."
According to the Small Business Administration, small businesses have generated 65 percent of the new jobs over the past 17 years. Currently, many small businesses face a 35 percent federal tax rate, irrespective of whether they pay taxes at the corporate or individual level. Regardless of how their company is organized, the Small Business Tax Cut Act would allow these job creators to deduct 20 percent of their business income from taxes and up to 50 percent of their W-2 wages. Only businesses with fewer than 500 employees would be eligible for this tax cut