The House has passed H.R. 9 the Small Business Tax Deduction Act with bipartisan support. The legislation would allow a 20 percent tax deduction on taxable income for all businesses with 500 or fewer employees. The bill is expected to cut taxes by $46 billion over ten years.
"According to the Tax Foundation, the average American has to work 107 days just to make enough money to pay their federal, state, and local tax burden," stated Westmoreland. "Yet President Obama and Congressional Democrats continue to push to raise taxes even higher. As I have always said, we don't have a revenue problem in this country. We have a spending problem. And the president can't keep trying to tax his way out of that problem."
According to the U.S. Small Business Administration, small businesses represent 99.9 percent of the 27.5 million businesses in this country and employ about half of all private sector employees. Yet many can be forced to pay more than one third of their income in taxes, draining money they could use to hire more employees or expand.
"If the president and Congressional Democrats are serious about job creation, then they will support this legislation," stated Westmoreland. "Our small businesses are drowning in a sea of costly regulations passed down by DC bureaucrats and higher and higher tax burdens. It's no wonder the employment rate is still so high. With this new deduction, we are letting small businesses keep more of their hard earned income that they can then use on hiring more employees or expanding. It's a great way to boost the economy and I strongly encourage the Senate to pass this legislation as soon as possible and encourage the president to sign it."
Earlier this year, Japan lowered its corporate tax rate making America's corporate tax rate the highest in the world. One third of the companies who would benefit from H.R. 9 are owned by women and one fifth are minority owned.