[Congressional Record Volume 142, Number 76 (Wednesday, May 29, 1996)]
[Extensions of Remarks]
[Page E936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS JOB PROTECTION ACT OF 1996

                                 ______


                               speech of

                             HON. VIC FAZIO

                             of california

                    in the house of representatives

                        Wednesday, May 22, 1996

  Mr. FAZIO of California. Mr. Speaker, I rise in support of H.R. 3448, 
the Small Business Job Protection Act of 1996.
  Small business is the backbone of our Nation's economy. According to 
the Small business Administration, small businesses generate more than 
50 percent of our gross domestic product and employ 53 percent of the 
American work force.
  Small businesses know their communities well. They often take a more 
personalized approach and fulfill unique needs for their communities 
that big business has no hope of duplicating.
  With the downsizing of many large corporations, our Nation's economic 
health increasingly will become tied to the health of small business. 
Statistics indicate that small business accounted for two-thirds of the 
new job growth in the United States in 1994. Any further economic 
development our Nation hopes to enjoy in the next few years will be 
seriously inhibited without the expansion of small business.
  Yet smaller firms can be at a disadvantage in getting the capital 
needed for start-up or expansion. It is essential to provide incentives 
to enable more small businesses to develop and grow throughout the 
United States, so that every American can benefit from the personalized 
services, innovative products, and modern technology as well as the new 
jobs and economic growth that smaller businesses provide to our 
communities.
  So I was particularly disappointed that the research and development 
tax credit, usually a bipartisan provision, was voted down in the Ways 
and Means Committee on a party-line vote.
  However, in light of the rapidly decreasing number of legislative 
days in this Congress to reach out to small business employers and 
employees, I nevertheless support H.R. 3448. It is the last opportunity 
to provide essential incentives for the development of small 
businesses. It also promotes job growth and educational opportunities 
for the millions of hard-working entrepreneurs who are at the heart of 
American economic success.
  One of the main obstacles which has deterred small business 
development in the past is the difficulty small businesses face in 
providing employee pension plans comparable to those of large 
corporations. This bill creates the savings incentives plan for 
employees of small businesses that could operate as an IRA or a 401k 
plan. It will enable small businesses to offer the same long-term 
savings plans as larger firms, so that they can offer the same 
incentives in retaining qualified employees.
  The Small Business Job Protection Act also addresses the concerns of 
many employees of nonprofit, tax-exempt companies who do not currently 
enjoy the security of a retirement account. This bill allows these 
organizations to offer 401k plans.
  Work and education are the core of our economic success, and we 
should heartily support public policy proposals which encourage work 
with education, education with work, Incentives for both are provided 
by this legislation through the work opportunity tax credit and the 
employer-provided educational assistance tax deduction.
  The work opportunity tax credit replaces the expired targeted jobs 
tax credit. Employers receive a tax credit equal to 35 percent of an 
employee's wages, for employees who receive economic assistance, 
including high-risk youth and veterans. The tax credit for employer-
provided educational assistance allows individuals to deduct from their 
taxable income up to $5,250 a year for employer-provided assistance for 
undergraduate tuition.
  Hard-working people are taking risks to start and expand small 
businesses. They are discovering new approaches that stimulate and 
generate economic growth. We must nurture the efforts of these 
entrepreneurs, and we must also help small business employees who work 
hard to sustain these efforts.
  H.R. 3448 is a step in the right direction towards encouraging the 
growth of small business and with it, the strengthening of our Nation's 
economy. I urge my colleagues to support H.R. 3448, the Small Business 
Job Protection Act.

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