Congresswoman Nita Lowey (D-Westchester/Rockland), in recognition of Small Business Week, today was joined by Westchester County small business owners at the Captain Lawrence Brewing Company to call for immediate passage of tax credits to help businesses hire new employees.
"When small businesses are able to hire and expand, our entire economy and community benefits," said Lowey. "That is why incentivizing the hiring of new employees and providing full expensing of equipment are two of the smartest investments we can make right now. 26 straight months of job creation is a great streak -- but we all know it is not enough. Congress should act on these common-sense proposals now."
"For small businesses to grow and hire, access to capital at an affordable rate is critical," said Captain Lawrence Brewing owner Scott Vaccaro. "Federal and state lending and loan guarantee programs make expansion possible for businesses like Captain Lawrence Brewing. Due to public investment in loan guarantees, our bank could lend us more money at a lower rate, enabling us to expand our facilities and hire four more employees."
"The proposed legislation would have a profound effect on small businesses," said Oscar Nordstrom, President of Nordstrom Contracting & Consulting Corp. "The combination of the 10% tax credit for new hires and 100% expensing would facilitate growth and have a snowball effect on manufacturing. Should this legislation pass, we would be able to purchase the equipment we currently rent and employ full-time help for our office operations."
President Obama last month presented Congress with a "To-Do List,' including a 10 percent tax credit for businesses that hire new employees, which would jumpstart job growth in the private sector. Full 100 percent expensing would allow businesses to deduct the full cost of equipment purchased from federal taxes, rather than a smaller deduction after accounting for depreciation of the investment.
A growing business, like the Captain Lawrence Brewing Company, could purchase equipment and hire new employees more affordably, helping to create jobs and expand.
"To compete in the global economy, we need to make it easier -- not more expensive -- for small businesses to flourish. It is critical that Congress takes immediate action to support the efforts of small businesses," said Lowey.