Congresswoman Vicky Hartzler (MO-4) and the U.S. House have passed H.R. 9, the Small Business Tax Cut Act, which will help small businesses retain more capital, invest in their businesses and create more jobs. The Small Business Administration (SBA) reports that as of 2009, in Missouri, there were 115,688 small businesses with between 1 and 500 employees employing 1,135,600 Missourians.
"We hear time and again that getting small businesses growing again is the key to America's economic recovery -- and that is absolutely true," said Hartzler. "According to the SBA, small businesses with fewer than 500 employees have generated 65 percent of the new jobs in this country over the past 17 years. From 2005 to 2008, small business created a net total of 35,106 new jobs in Missouri. But the SBA reports that from 2008 to 2009, 62,072 net jobs were lost. As a small business owner I understand that the best way to get people back to work and to grow the economy is through small business growth."
"Under current law, a small business can pay up to a 35 percent federal tax on income," added Hartzler. "Our bill allows a small business to deduct 20 percent from the total income. For example, a business paying the 35 percent tax on each $100 of income would pay the 35 percent tax on $80 -- a savings of $7 in federal taxes. This is money that could be reinvested in the business to create jobs."
U.S. Census Bureau data reveal that of the small businesses in Missouri with between 1 and 500 employees, 16,525 are women-owned and employ 119,858 Missourians.
Congresswoman Hartzler and her husband own a farm equipment company with stores in three 4th District locations.