Obama’s American Jobs Act will aid small business
The American Jobs Act builds on the 17 tax cuts for small businesses that already have been signed into law. It will cut payroll taxes in half for 98 percent of businesses. It also will eliminate payroll taxes for small businesses that create new jobs. In addition, the American Jobs Act contains tax credits for small businesses that hire unemployed veterans, service-disabled veterans and workers who have been unemployed for at least six months. These tax cuts are designed to have the maximum impact on job creation. They will give small business owners more money to invest in their business and hire new workers.
At the same time, the American Jobs Act makes long-term investments in America's economy. It contains billions of dollars in investments in roads, railways and airports, including the creation of a National Infrastructure Bank. These investments will mean contracts that increase the bottom line of small firms and give them the revenue they need to create jobs.
And, the bill calls for modernizing 35,000 schools, which will provide work for small construction companies, while also strengthening the education system training the next generation of entrepreneurs. It will expand broadband access to 98 percent of Americans, which will make it easier for entrepreneurs to start businesses and find new customers, both at home and abroad. These investments will put Americans back to work today, while modernizing the economy and increasing global competitiveness in the 21st century.
Of course, there are ways to support small businesses that don't require new legislation. That's why the president also ordered federal agencies to cut the time it takes them to pay small contractors in half, from 30 days to 15 days. This change will free up working capital and save small business owners billions of dollars.
The American Jobs Act is a crucial step to putting all Americans back to work. The American Jobs Act contains bipartisan ideas that both parties have supported in the past, and it's completely paid for.
Calvin Goings is regional administrator for the Small Business Administration's Region 10.