Texas has over 387,000 small businesses. These small businesses employ 4 million Texans. In fact, between 2005 and 2008 small businesses created 600,000 new jobs in Texas, but between 2008 and 2009 over 110,000 jobs were lost when the country entered into a recession.
I know we say it all the time but the best way to help our economy recover and get people back to work is through our small businesses. Their success or failure can make or break our economy.
Although Texas is one of the best places to start or relocate a business, federal taxes still hurt their growth. Federal regulations and the tax code hold back entrepreneurs who want to start or expand a business.
Today the House helped these owners keep more of their money.
Whether an owner pays taxes at an individual or corporate rate, they can face up to a 35 percent federal tax rate. When small business owners keep more of their capital, they don't spend it -- they reinvest it in their business. They invest in equipment and hire more employees. They generate jobs. As a former small business owner I know this.
Today the House passed the Small Business Tax Cut. This bill will allow a company employing fewer than 500 workers to deduct 20 percent of their income from their federal taxes. This is a common sense tax-cut proposal that will help an estimated 22 million small business owners across the country.
This is a bill that will give employers the freedom to reinvest and spend their capital the way they want to -- not the way the government tells them to.
Member of Congress