Get the latest delivered to your inbox
Privacy Policy

Now Reading

ASBC Statement on H.R. 9, Majority Leader Eric Cantor's "Small Business Tax Cut Act"

ASBC Statement on H.R. 9, Majority Leader Eric Cantor's "Small Business Tax Cut Act"

Published 04-19-12

Submitted by American Sustainable Business Council

As the U.S. House begins debate on H.R. 9, the Small Business Tax Cut Act, the objective of the legislation needs to be assessed by those the bill seeks to help.  As currently written, H.R. 9 is unlikely to promote job creation by the nation’s small businesses. 

Real small business owners don’t make hiring decisions based on personal income or tax rate.  Hiring decisions are based on demand for goods and services.  If the demand is not justifying the addition of more employees, a marginal increase of income to the owner will not result in the hiring of workers. 

It has been reported that the Joint Committee on Taxation has projected about $6500 as the tax break for the average small business qualifying under this bill.  Because this is only a small amount of the actual cost to a business for adding an employee and because this is only a one-time tax break, small business owners will use this small “windfall” for things other than job creation.  Even the wealthiest of small business owners with incomes over $1 million whose average tax break will be about $60,000 will be unlikely to put their “windfall” towards a new employee.

An effective job creation plan from Congress would be investing in Main Street through funding for infrastructure projects and workforce development that will strengthen our economy for the long-term.  The creation of jobs through these efforts will in turn generate demand for our small businesses leading to natural growth in hiring.

American Sustainable Business Council logo

American Sustainable Business Council

American Sustainable Business Council

The American Sustainable Business Council (ASBC) is a national coalition of mission-driven businesses, social enterprises and sustainable business networks working to create a vibrant, just and sustainable economy. What unites us is a deep belief that we must move to a new economy that is grounded in principles of sustainability and equity.

The Council represents over 55,000 businesses and enterprises and more than 150,000 executives, owners, investors, entrepreneurs and business professionals. It is comprised of partners, which are organizations that represent businesses and social enterprises as well as entrepreneurs, executives, owners and investors committed to building a vibrant, just, and sustainable economy.

ASBC promotes policy change by educating and informing the business community, policy makers and the media about the business case for change, and by engaging the leaders of businesses and enterprises in building broad support for the policies America needs. We work on a range of policy areas, including: financial reform, health care, chemicals policy, climate change and business taxes.

We believe that the policies that will lead us to a sustainable and just economy are also good for business and good for America. Making the right commitments and investments will produce more and better jobs, build strength in key technologies, and make the U.S. more independent and secure.

More from American Sustainable Business Council

Join today and get the latest delivered to your inbox