WASHINGTON - Congressman Charles Rangel praised President Barack Obama for signing into law legislation that would spur economic growth and create 500,000 new jobs by encouraging the development of American small businesses without adding a dime to the deficit.
“Thanks to our President, our small businesses will have the resources they need to grow their entrepreneurial dreams into job opportunities for all," said Rangel. "These businesses are the foundation of our economy and we must do all that we can to create the kind of create the kind of environment that helps them grow and flourish."
The Small Business Jobs bill immediately restarts the Small Business Administration’s Recovery lending, helping more than 1,400 small businesses who had been waiting to get the credit they need. The legislation also includes several new small business tax cuts that provide an immediate incentive for businesses to make new investments and expand.
For example:
• If you are a small business and you buy new equipment, you can immediately write off the first $500,000 of your investments;
• If you are one of over one million eligible small businesses, key long-term investments in your company will be subject to zero capital gains taxes;
• If you are an entrepreneur and take a chance on a new idea, you can deduct the first $10,000 of your start-up costs;
and
• If you are self employed, you can deduct 100 percent of the cost of health insurance for you and your family from your self-employment taxes.
In all, the bill that passed the House of Representatives last week by a vote of 237-187 will help America’s 27 million small businesses create new jobs and grow with $12 billion in tax cuts. It will make Main Street businesses more competitive with big corporations by leveraging up to $300 billion in private sector lending for small businesses, along with state grants for small business lending.
“In spite of rampant Republican opposition, obstructionism, and delay, we have passed a bill that moves America forward,” said Rangel. “With tax cuts and access to more capital, our nation’s small businesses will be able to put more Americans back to work now, which means putting more money in people's pockets and revamping our economy."
Click here for more information on the legislation from the White House.
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