The American Jobs Act – Helping Small Businesses Grow And Hire
“Everyone here knows that small businesses are where most new jobs begin.
And you know that while corporate profits have come roaring back,
smaller companies haven’t. So for everyone who speaks so passionately
about making life easier for ‘job creators,’ this plan is for you.”
– President Barack Obama, 9/8/11
Helping small businesses grow and hire is at the core of the American Jobs Act that the President announced. Entrepreneurs and small business owners – America’s biggest job creators – are looking to Congress to enact these powerful, bipartisan, specific, paid-for proposals as quickly as possible.
The American Jobs Act will help small businesses continue doing what they do best: create good jobs, drive competitiveness and innovation, and strengthen economic security for the middle class. The time to act is now. American Jobs Act provisions to help entrepreneurs and small business owners include:
- Cutting in half the payroll taxes (to 3.1%) for small businesses for the first $5 million in wages, targeting the benefit to the 98% of firms that have payroll below this level;
- Temporarily eliminating employer payroll taxes for small businesses that create jobs or give raises for existing workers above the prior year (applies to up to $50 million);
- Extending an immediate 100% expensing write-off into 2012 to encourage even more businesses to invest in more machinery and equipment;
- Large tax credits (up to $4,000) for businesses that hire workers who’ve been unemployed for 6 months, with bigger credits for hiring unemployed veterans (Returning Heroes Tax Credit up to $5,600) and service-disabled veterans (Wounded Warriors Tax Credit up to $9,600);
- Billions of dollars in investments in roads, rail, and airports and the creation of a National Infrastructure Bank;
- $25 billion for modernizing 35,000 schools, boosting small construction firms while also strengthening STEM education in order to grow tomorrow’s entrepreneurs and innovators;
- Helping small business contractors compete for infrastructure contracts and get SBA surety bonds up to $5 million;
- Deploying the power of wireless high-speed internet to 98% of Americans – including many students, entrepreneurs and small businesses in rural areas – through private-sector auctions of spectrum;
- Turning job seekers into job creators by making it easier for States to allow unemployed workers to create their own jobs by starting their own businesses;
- Increasing skills-based training for youth and adults to help them transition to the innovation economy;
- Raising the cap on “mini” public offerings of small firms from $5 million to $50 million and reducing the disproportionately high costs that smaller companies face when “going public.”
In addition, the Administration is moving forward with ideas that don’t need Congressional action, including:
- Paying small contractors more quickly for the innovative products and services they provide to the federal government;
- Allowing small business to raise money through crowd funding and allowing for new, innovative ways to attract small-dollar investors in small businesses.