Rep. Kirkpatrick Helps Pass Bills to Create Small Business Jobs, Reduce Tax Burden

Press Release

Representative Ann Kirkpatrick, Arizona's only Member on the House Small Business Committee, has helped push through the House critical measures that will make it easier for small businesses to succeed and create jobs in our communities. She today voted to pass the Small Business Jobs and Credit Act to address the lack of access to credit that is preventing local businesses from expanding. This follows her support Tuesday for the Small Business Jobs Tax Relief Act to remove some of the obstacles put in their way by the tax code.

Greater Arizona entrepreneurs like Chris Kuknyo, who she invited to represent the district at the committee's "Heroes of Small Business" hearing May 26, have spoken with Rep. Kirkpatrick about the challenges they face without access to credit. She voted in favor of the Small Business Jobs and Credit Act to ensure that they can get the capital they need to re-invest in their businesses and start hiring again.

The legislation allows community banks to access a new $30 billion fund that they can use to lend to small firms, and offers incentives for them to open up new lines of credit. This could spur up to $300 billion in new loans for small business development. The bill will also better support state small business lending programs and set up a public-private partnership to help direct investment capital to small business start-ups.

"Small businesses are the engine of our economy -- they are our innovators and our job creators. They are going to lead this country out of the downturn, and Congress needs to help them along by removing the barriers in their way," said Rep. Kirkpatrick. "I have heard from so many local businesses owners who say they want to start growing and hiring new employees again, and they just can't get the resources they need to do it. I supported this bill to address their concerns and help them get folks back to work."

"The House of Representative is giving a double shot in the arm to 28 million small businesses with tax relief and loan support," said Small Business Majority president John Arensmeyer, whose organization endorsed the bills. "The double boost is very much needed as small businesses across the country are still suffering from the "Great Recession.' Credit is still extremely tight, restricting the ability of small businesses to grow and create jobs. Small Business Majority appreciates the efforts of Rep. Kirkpatrick on behalf of small businesses to improve access to credit and provide tax relief during this severe economic downturn."

The Congresswoman has been working throughout her first term to cut the taxes that make it tougher for small businesses to thrive, and the Small Business Jobs Tax Relief Act includes several key provisions that she has been fighting for.

The bill quadruples the tax deduction for small business start-up expenses, a measure she co-sponsored as a stand-alone bill. It also encourages investment by making stock purchases in small businesses tax-free from March 15 of this year until December 31, a provision she helped push through the House previously as part of a larger package. Furthermore, it reduces excessive penalties for good faith errors in tax filings by responsible small business owners under Section 6707A of the Internal Revenue Code, a step she has been pushing for since a local business owner was hit with nearly $1 million in fines for not submitting a particular form with his tax return and approached her office for help.

"Creating jobs is my absolute top priority, and high taxes on small businesses can't be allowed to stop us," said Rep. Kirkpatrick. "The tax code too heavily burdens our local business owners, making it tough for them to realize their dreams and contribute to the recovery. This is a valuable move in the right direction -- our entrepreneurs deserve a break.

"This Congress has insisted, despite my strong opposition every step of the way, on bailing out Wall Street, big businesses and big banks. Washington has wasted enough taxpayer money on fixing the mistakes of greedy corporate CEOs -- now they need to start doing something for the small businesses owners back home who are actually helping our economy. I am proud to help take this step."

"With this bill, the Congresswoman is helping making the tax system more fair and reasonable for small business. The federal government should be helping our businesses keep the doors open and start growing again, not setting up obstacles to throw us off course," said Stephen Rutherford, who was the entrepreneur who brought the flaw with Section 6707A to her attention after being hit with an outrageous fine due to a technicality. "Congresswoman Ann Kirkpatrick has been very responsive to my issue in getting this tax penalty changed. I couldn't be more appreciative."

These bills are fully paid for by closing significant tax loopholes that do nothing to help our economy, including one that could actually kill jobs in Greater Arizona if it remained open. Currently, kraft paper mills are able to claim a biofuel tax credit for making "crude tall oil" -- a natural by-product of their manufacturing. As with similar tax breaks for the "black liquor" by-product, this gives those mills a competitive advantage over recycled paper mills like the Catalyst Mill in Snowflake. These loopholes pushed Catalyst to lay off one-quarter of its workforce over three years and threatened a shutdown that would leave more than 300 workers out of a job. Rep. Kirkpatrick led the fight to successfully prevent one of the "black liquor" loopholes from being extended and passed into law an amendment closing another, saving taxpayers $25 billion.

These two bills will now move together as one for consideration by the U.S. Senate. The package has earned the support of the National Small Business Association and the National Association of Realtors.

The Congresswoman has worked hard to make Washington set policies that will help and not hinder local businesses. She has passed measures through the House to encourage private firms to invest in small businesses in the growing renewable energy field and in low-income areas, and pushed through a bill to increase the opportunities and assistance available for Native American small business owners. In addition to fighting for the tax cuts in the Small Business Jobs Tax Relief Act, she has also striving to make it easier for them to take key tax deductions.

Source