Straight Talk- House Votes to Give Tax Relief to Small Businesses

Statement

Dear Friends,

I can't think of a more appropriate week to evaluate our nation's tax policies and how they affect small businesses than tax week. On Wednesday, our Committee held a hearing about how upcoming tax increases will affect small firms; specifically, the health care law taxes and the expiring tax rates at the year's end. What we heard is that small firms need relief now more than ever.

Because small companies are disproportionately affected by tax compliance and high tax rates more than their larger counterparts, the House passed a bill that would provide them relief with a 20% tax deduction. The Small Business Tax Deduction Act is simple, fair, and gives small businesses access to badly needed capital to invest in their companies, while providing a little more certainty to help them plan for the future. This is just the type of a 'jobs' legislation that Washington should focus on, and I encourage the Senate to take up this bill soon.

Finally, I testified during a House Armed Services Committee hearing on Tuesday about including the Committee's small business contracting legislation in this year's National Defense Authorization Act. This spring, we introduced contracting reform bills to provide more opportunities for small firms, create protections to fight fraud and abuse, and empower advocates who fight for small businesses during the acquisition process. We will continue to push for these bills to become law so that small businesses can have a fair shot in the federal procurement marketplace.

Sam Graves
Chairman

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