At a press conference today, Rep. Pete Olson (R-TX) reasserted his support for legislation cutting taxes on small business by 20% and discussed the impact of federal policies on small business job creation. He was joined by his colleagues Reps. Kevin Brady (R-TX), Marsha Blackburn (R-TN), Aaron Schock (R-IL), Erik Paulsen (R-MN), and Bobby Schilling (R-IL).
"When I meet with small businesses across Houston, I continually hear their concern about tax hikes and costly regulations being the greatest obstacles to expansion and job growth," Olson said. "Small businesses are the backbone of America. The current federal tax code consumes roughly one-third of these companies' income as they try to stay afloat in difficult times, hurting their ability to expand or hire.
"Tax reform is a key solution to relieve the fiscal burdens small businesses face. This legislation will allow America's Main Street job creators to invest this tax savings back into their businesses and create more jobs. This small business tax cut can help nearly 22 million American businesses and serve as a catalyst for our nation's recovery," Olson concluded.
Small businesses comprise 99% of America's 27 million businesses and are the largest private sector employers, generating 65% of all new jobs. Small businesses currently face up to a 35% federal tax rate, regardless of whether they file corporate or individual taxes. The bill, H.R. 9, provides a tax cut equal to 20% of the income of small businesses with fewer than 500 employees. H.R. 9, the Small Business Tax Cut Act passed the House by a vote 235-173.