Iowa Small Businesses Will Grow & Hire New Employees Under U.S. House Tax Relief Measure

Press Release

Iowa Congressman Latham will vote on Thursday for a proposal to spark job creation by extending much needed tax relief to America's small businesses.

"Small businesses are the heartbeat of our economy," Congressman Latham said. "This legislation is a critical step toward a healthier environment for businesses to grow and expand in Iowa and across the country. I'm voting for a better path to a healthy economy that restores economic security and opportunity for the American people."

The Small Business Tax Cut Act of 2012, which is expected to be voted on by the U.S. House of Representatives on Thursday, would extend a tax cut of 20 percent to all businesses with fewer than 500 employees. With a reduced tax burden, small businesses will be able to invest, expand and create new jobs.

Small businesses represent 99.9 percent of the 27.5 million businesses in America and employ about half of all private sector employees. Yet the internal revenue code places enormous burdens on small businesses that sap capital, resources and time that could otherwise be spent expanding, investing and creating jobs.

As of 2009, Iowa had almost 62,000 small businesses that would benefit from this legislation. Between 2005 and 2008, small businesses created a net total of 35,235 jobs in Iowa, but a net total of 10,204 small business jobs were lost in Iowa from 2008 to 2009. Additionally, according to the Iowa Department of Economic Development, businesses with fewer than 50 employees make up more than 95 percent of the total number of employers in Iowa and more than half of the state's businesses employ fewer than five people.

"Small businesses are America's job creation engine, and they will lead the way as our economy recovers," Congressman Latham said. "But Congress can take action right now to remove the burdens and uncertainty that are holding small businesses back. This legislation is simple, fair and allows small businesses to keep more of their money so they have more capital to grow and create jobs

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