Rep. Ron Kind (D-WI) today voted to establish a voluntary lending program to help small businesses create 500,000 new jobs by expanding much needed lending to millions of small businesses and offering tax incentives to help them grow, hire, and fuel our economy. The bill also includes a provision, authored by Rep. Kind, that allows the self-employed to deduct 2010 health insurance costs. The Small Business Jobs Act, H.R. 5297, is not only fully paid for over 10 years, but also reduces the deficit by closing tax loopholes and reducing the tax gap.
"Small businesses are the engine of our economy, creating two out of three new jobs right now," said Rep. Kind. "I know western Wisconsin small businesses and family farmers continue to face a lack of credit and tight lending standards, this bill will help unfreeze the credit markets and create generous tax incentives to help our local businesses create more jobs."
The Small Business Jobs Act gives small businesses $12 billion in tax cuts to spur investment and hiring, including by doubling and enhancing small business expensing and extending bonus depreciation to make it cheaper for companies to invest in their business right now. The Jobs Act also allows for 100% exclusion of capital gains on investments in small businesses. The bill leverages up to $300 billion in private sector lending for small businesses, along with state grants for small business lending. This new $30 billion lending fund, with tough performance-based incentives and safeguards to ensure that funds go to American small business, will spur job creation across America.
In addition, the Small Business Jobs Act includes provisions, authored by Rep. Kind, to allow the self-employed to deduct the cost of health insurance in 2010 for themselves and their family members for payroll tax purposes. Under current law, the self-employed are not permitted to deduct the cost of health insurance for themselves and their family members for purposes of calculating self-employment tax. The self-employed, including family farmers, will save over $2 billion in 2010 because of this provision.
"My primary focus has always been to provide the resources to help small business grow and create jobs in this tough economy," said Rep. Kind. "This legislation will not only drive job creation and innovation, but also give small businesses the capital they need to put western Wisconsin back to work."
The bill is supported by National Small Business Association, Small Business Majority, National Retail Federation, National Restaurant Association, Hispanic Chamber of Commerce, Independent Community Bankers of America, American Bankers Association, Financial Services Roundtable, Business & Professional Women's Foundation, International Franchise Association, Motor & Equipment Manufacturers, and National Association for the Self-Employed.
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