[Congressional Record (Bound Edition), Volume 156 (2010), Part 1]
[Extensions of Remarks]
[Page 1170]
[From the U.S. Government Publishing Office, www.gpo.gov]




      INTRODUCTION OF THE SMALL BUSINESS JOB CREATION TAX ACT 2010

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                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                      Wednesday, February 3, 2010

  Mrs. MALONEY. Madam Speaker, since the recession began in December 
2007, 8 million jobs have been lost in America. The unemployment rate 
has more than doubled since then to 10% and the underemployment rate is 
at 17%. To keep pace with population growth, 127,000 jobs must be 
created each month just to keep unemployment from rising. Historically, 
small business has generated 64 percent of net new jobs over the past 
15 years, according to the Small Business Administration.
  That is why today, along with Congressman Gene Green, I am 
introducing the Small Business Job Creation Tax Act 2010. This bill 
will provide tax cuts to employers who increase their payroll over one 
year based on a percentage of that increase.
  This legislation will provide businesses a tax cut worth 15 percent 
of the cost of a new job. Small businesses would receive an additional 
5%, allowing them to deduct 20% of their increased payroll costs. The 
tax cut would be structured based on a firm's quarterly payroll 
increase over the previous year, meaning companies would also have an 
incentive to expand part-time workers to full-time, or eliminate salary 
cuts instituted during the downturn. This would also provide protection 
against fraud by preventing employers from firing and re-hiring 
employees to claim the tax cut. The legislation would also contain 
additional protections against abuse by including a limit on the tax 
cut claimed by any one firm to $500,000 and excluding mergers or 
acquisitions where no new jobs are actually created.
  In his State of the Union Address, President Obama stressed the 
importance of creating jobs. I cannot think of a more important action 
we can take as a Congress than creating incentives for businesses to 
grow their job force. I urge my colleagues to support this important 
legislation.

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