Today, Congressman Eric Cantor (VA-07) introduced H.R. 9, the Small Business Tax Cut Act of 2012, to help small businessmen and women grow their businesses and hire new workers. The Small Business Tax Cut Act will allow small businesses with fewer than 500 employees to take a tax deduction equal to 20% of their active business income, irrespective of how the small business is organized. This 20% small business tax cut goes straight to the bottom line so small business owners can retain more capital, invest in their businesses and create more jobs. Congressman Cantor made the following remarks:
"We are here today to talk about small businesses. Obviously, we believe the first order of priority here in this Congress needs to be directed towards jobs and the economy. When we are asking who are the job creators, small businesses create 65% of all new jobs. If our goal is get the economy growing again, we've got to help small businesses.
"What the bill will do is it - bottom line - will put more revenues, more money into the hands of small business owners so that they can reinvest those funds to retain and create more jobs and to grow their business. Plain and simple. According to the Joint Committee On Taxation - the Chairman of Ways and Means is here, and he can speak to this as well - this bill will impact nearly 22 million small businesses throughout the country.
"Now I've spoken to some small business owners in my district in Richmond and I can tell you what they said. Gary Glover of Puritan Cleaners in Richmond said, "This bill will help us immediately as we look to expand our business by possibly adding a new location or even rehiring employees that we were previously forced to lay-off.'
"Ann and Jeff Heidig of Lake Anna Winery said, "Having additional funds to invest into our business for the purchase of equipment and vines to expand the vineyard would help us achieve our goal to increase production by several thousand cases. With this increase, we will be able to hire additional personnel to sell and promote our wines.'
"Again, this bill is a common sense measure. We should all be able to rally around the cause of small businesses. This is a small business tax cut bill that goes right to the heart of job creation in our country."