Today, Congressman Harold "Hal" Rogers (KY-05) voted in support of the Small Business Tax Cut Act of 2012, H.R. 9, which gives small businesses with fewer than 500 employees a 20% tax cut. This legislation will help foster economic growth by reducing the small business federal tax burden while allowing investors and entrepreneurs to retain capital, more aggressively reinvest income, and create more jobs. H.R. 9 passed the House of Representatives by a vote of 235-173 and now awaits consideration by the Senate.
"I am pleased to join a bipartisan majority in the House of Representatives in passing needed legislation that will boost our economy, help spur job creation, and give small businesses a chance to grow. Small businesses in Kentucky are the backbone and blood of our communities and our local economy," stated Rogers. "This tax-cutting legislation will help Kentucky companies retain dollars to invest in wage increases, order additional equipment and supplies or add new hires. I am hopeful the Senate will join us and pass this legislation so that we can start getting Kentucky and the rest of America back to work."
According to the U.S. Chamber of Commerce, small business owner confidence in the economy has risen 7% since January of this year, but hiring has remained at a standstill. In fact, in Kentucky alone, 40,849 small business jobs were lost from 2008 to 2009; overregulation and high taxes remain the chief concerns among small businesses owners. Currently, small businesses face federal tax rates as high as 35%, draining resources, capital, and time. Furthermore, small businesses spend three times more per employee on tax compliance than larger businesses, and under President Obama's FY13 Budget Proposal, individual tax rates that apply to small businesses are scheduled to increase significantly.
The Small Business Tax Cut Act seeks to remove these excessive tax burdens on small businesses by allowing business owners to deduct 20% of their income from taxes regardless of how they are organized. In order to avoid any forms of abuse, safeguards have been created that put a 50% limit on wage income for the 20% tax cut. A wide range of small businesses will benefit from this tax deduction, from businesses that are classified as organized corporations to those whose owners pay at their individual income tax rate. The non-partisan Joint Committee on Taxation has estimated that H.R. 9 will benefit over 22 million small businesses employers across the United States and save taxpayers almost $46 billion. This legislation has the support of 49 various groups and associations that can be found here.
Rogers has served Kentucky's 5th Congressional District since 1981. With a focus on economic development, job creation, fighting illegal drugs and preserving Appalachia's natural treasures, he has a reputation for listening to his constituents and fighting for the region he represents. For more information visit www.halrogers.house.gov or Rogers' Facebook page at: https://www.facebook.com/#!/CongressmanHalRogers. To receive Twitter updates go to: https://twitter.com/#!/RepHalRogers