Encouraging Small Business Hiring through Tax Credits
Ed. Note: You can watch video of each Cabinet member describing what his or her department or agency has accomplished this year and what to expect in the year ahead at our The President's Cabinet Reporting to You page.
Today the President went to a small business in Baltimore to announce the Small Business Jobs and Wages Tax Cut, which will provide a $5,000 tax credit to over a million small businesses for every net new employee they hire, with other tax incentives for increasing wages. (Read the transcript of the President's remarks in Baltimore.) As the President emphasized in his State of the Union address, we still have much work to do to help small businesses create more jobs in 2010, and this is a major first step.
The President has also announced plans to eliminate capital gains taxes on small business investments, to provide tax incentives for small businesses that invest in new plants and equipment, and to use $30 billion of the money Wall Street banks repaid to help community banks offer small business loans.
But it’s also worth noting that small business, and their role in our recovery, has been a top priority for the President since his first day in office. That’s why I was pleased to provide this brief report on what we accomplished at the U.S. Small Business Administration in 2009 with the help of the Recovery Act.
We know that if we give small businesses the tools they need, they will create the jobs Americans need. This tax cut is one of several tools the President has proposed that help small businesses continue to drive our nation’s economic recovery. And, all of us here at the SBA are proud to be helping them do just that.
Karen G. Mills is Administrator of the Small Business Administration (SBA)