U.S. Senator Barbara Boxer (D-CA) today issued the following statement after the Senate voted 80-to-14 to begin debate on the Small Business Jobs and Tax Relief Act of 2012:
"This legislation will help our small businesses grow by giving employers incentives to create jobs, invest in their businesses and increase wages for workers. According to a nonpartisan estimate, the measure will boost our economy by creating nearly 120,000 new jobs in California and nearly 1 million jobs nationwide."
The legislation by Senate Democrats, which was first proposed by President Obama, would give a 10-percent tax credit to businesses that add payroll in 2012, either by hiring new workers or giving raises to existing employees. Companies would be eligible for the tax break on the first $5 million of new payroll, for a maximum credit of $500,000.
The measure would also extend through 2012 a tax cut that allows businesses to write off 100 percent of the value of new capital investments, which would encourage companies to expand and make major purchases this year.
A report by Regional Economic Models, Inc. (REMI), an independent, Massachusetts-based economic modeling firm, estimates that the legislation would create 990,592 jobs nationwide and add $87 billion to the nation's GDP in 2012.