Small Businesses Are Economy's Engine

Press Release

Small Businesses Are Economy's Engine

"Legislation coming through Congress this week provides a great example of a way that the federal government can do good work to really stimulate the economy without raising taxes and spending hundreds of billions of dollars. Sure, there were provisions in the Democrat's stimulus bill that provided support for small businesses, but many of the dollars used to provide that support came largely from taxes raised on folks above a certain income level, including many small business owners.

"This irony would almost be funny if it weren't true. The way to help small business is not to "spread the wealth around." The way to help small business is to promote innovation, reduce onerous taxes, and provide a platform for which this country's entrepreneurial spirit can flourish.

"This week is National Small Business Week, and there are several pieces of legislation coming though Congress that will do just that.

"H.R. 2352 is the Job Creation through Entrepreneurship Act of 2009. This bill incorporates several smaller bills that modify and reauthorize programs that will support small business owners. Among other things, H.R. 2352 will reauthorize the Small Businesses Administration's (SBA) entrepreneurial development programs, create a new small business assistance program for veterans, and includes legislation I cosponsored to increase support for Small Business Development Center (SBDC) programs. This bill has received wide bipartisan support in the House, and I was happy to support its passage.

"I have also cosponsored three other bills that will reduce the tax burden on small businesses. H.R. 1552, the Small Business Formation and Job Creation Act, raises the new business start-up tax deduction from $5,000 to $20,000, eliminating a major barrier that prevents new businesses from launching in the first place. I've signed on to H.R. 1509, the Home Office Deduction Simplification Act, which provides a standard deduction of $1,500 for home office expenses. I also recently cosponsored H.R. 1836, the Payroll Tax Holiday Act of 2009, a bill introduced by Congressman Minnick. This bill eliminates employment and self-employment taxes until January 1, 2010, for small business owners who employ 50 or fewer employees.

"Over the last several months you've probably heard small businesses referred to as the "backbone" of our economy. In fact, I've probably said that a few times myself. Small business represents more than half of our private sector employment and creates almost four out of every five new jobs in this country. So let's get it straight… small businesses are not the backbone of our economy, they are our economy. Idaho's small businesses are not only the core job creators in our state, but more than anything else they promote a local culture and identity that defines many of our communities. The local ice cream shop or sporting goods store, the near-by small parts manufacturer or the favorite burger joint not only provide jobs, but they enrich our unique communities, each in their own way.

"While we certainly should use this week to appreciate the importance of small businesses, I hope that Congress will continue to prioritize small business beyond this week alone. That said, this is not the time to grow government and generate unsustainable funding levels for programs that do not stimulate the economy. I will work non-stop to push back government interference on businesses, allowing them to make decisions that are good for their companies, good for economic growth and good for the livelihoods of individual citizens and families. Idaho's entrepreneurs and businesses can compete with the best in the world, and my goal is simply to keep government from getting in the way of their success."

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