Pallone Meets With Small Business Owners To Discuss Economic Growth & Job Creation
Touts The American Jobs Act and The Make It In America Agenda As Aids
To Small Business
Red Bank, NJ — Citing the significance of small businesses for economic growth and job creation, Congressman Frank Pallone, Jr. toured the Red Bank business district to meet with small business owners to discuss actions Congress has taken and should take to facilitate business expansion. Pallone also heard from the local merchants about their needs and their ideas.
“Small businesses are responsible for nearly 70 percent of job creation so it is critical that they are able to survive the tough times and thrive as the economy improves,” said Pallone. “The country needs workable plans to aid economic growth in the same way that business plans are important to each and every business. The American Jobs Act is a smart plan to put people back to work immediately and the ‘Make It In America’ agenda is an effective game plan for continued growth and opportunity.”
Pallone was accompanied by Alfred J. Titone, district director for the U.S. Small Business Administration's New Jersey district office and Red Bank Mayor Pat Menna. Titone was available to provide direct assistance for SBA programs and services.
President Obama recently announced the American Jobs Act as a means of putting people back to work and putting more money into the pockets of working Americans. The proposal includes an array of tax cuts for small businesses that hire new workers or give raises to existing ones. It also includes payroll tax cuts for employees.
“The Jobs Act will help small businesses do what they do best: create jobs, drive innovation and provide economic security for the middle class,” said Pallone. “In addition to putting teachers, police officers and firefighters back to work, the plan helps small businesses by providing cash incentives to add jobs, to give raises and to hire returning veterans.”
The payroll tax cuts would save a small business with 50 workers approximately $50,000 a year. On the employee side, each American family would take home $1,500 annually. The non-partisan Congressional Budget Office estimates that the employer payroll tax cut is one of the most effective job creators by helping firms reduce labor costs.
For New Jersey, the Jobs Act invests $1.3 billion in highway and transit projects that would support a minimum of approximately 17,200 local jobs. The national investment of $35 billion to prevent layoffs of up to 280,000 teachers would provide $831 million to New Jersey to support up to 9,300 educator and first responder jobs. The funding to rebuild and modernize schools will direct $518 million to New Jersey, supporting 6,700 jobs. All of these investments will benefit small businesses, directly or indirectly.
Beyond the proposed Jobs Act, Pallone cited the Democrats’ longer-term plan for increasing economic opportunities, entitled Make It In America. The expansive plan – some of its provisions have been enacted, others have not – includes items targeting small businesses. In particular, the Small Business Jobs Act provides much-needed capital to small businesses. The act was signed into law last year.
The Make It In America agenda includes:
- Closing tax loopholes that encourage outsourcing U.S. jobs overseas.
- Hometown tax credits to help small businesses hire new employees and sell their products and innovation overseas.
- Incentives to create American clean energy jobs like making state-of-the-art wind turbines and solar panels–paid for by ending corporate welfare to Big Oil.
- Strengthens rules that U.S. and its contractors buy American, especially to build transportation, energy, and communications infrastructure.
- Demands that China and other countries honor fair trade principles or lose American business.
- Incentives to hire and retrain America’s returning veterans for new clean energy jobs.
- Strengthens partnerships with businesses to retrain America’s workers for jobs for the jobs that are actually needed.
American Jobs Act provisions that help small business owners include:
- Cutting in half the payroll taxes (to 3.1%) for small businesses for the first $5 million in wages.
- Temporarily eliminating employer payroll taxes for small businesses that create jobs or give raises for existing workers;
- 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 or more;
- Returning Heroes Tax Credit up to $5,600 to hire unemployed veterans.
- Wounded Warriors Tax Credit up to $9,600 to hire disabled veterans;
- $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
- 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.”