NSBA President Participates in JEC Briefing on TaxesOctober 6, 2011
NSBA President Todd McCracken today briefed the U.S. Congress Joint Economic Committee on the various tax proposals that will help America’s small businesses. The briefing was led by JEC Chairman Sen. Bob Casey (D-Pa.), and Dr. Donald Marron, Director of the Urban-Brookings Tax Policy Center and Dr. Mark Zandi, Chief Economist at Moody’s Analytics also spoke at the briefing.
The briefing, “Tax Incentives to Bolster Job Creation and Strengthen the Economy” focused on some of the various tax proposals aimed at spurring job creation and economic growth, specifically the payroll tax provisions included in the American Jobs Act.
“Without question, a payroll tax holiday will help a significant chunk of small businesses. However, like any jobs credit, this is a short-term incentive to make a long-term decision, so its effects will naturally be circumscribed,” stated McCracken.
Throughout the briefing, McCracken reiterated that, while a payroll tax holiday will put cash back in the hands of struggling small-business owners and employees, Congress must seek bold, bipartisan actions to stem the driver of the lagging economy: uncertainty.
“Seven out of 10 small-business owners say economic uncertainty is the most significant challenge to the future growth and survival of their business,” stated McCracken. “The growing partisan divide and complete breakdown in progress surrounding the debt ceiling talks has greatly exacerbated small-business owners’ lack of confidence in the future of the U.S. economy, and even in their own business.”
McCracken pointed out that there are many businesses with cash and savings on-hand, but few are willing to make any investments or even plan for the future due to the utter lack of confidence in lawmakers’ ability to move forward.
“Until lawmakers move beyond electioneering and on to the business of governing, economic uncertainty will persist and there will be no significant economic recovery.”
McCracken went on to urge lawmakers to set their eyes on comprehensive tax reformas a long-term economic growth driver: “NSBA has identified our so-called 10 commandments of tax reform which basically boil down to simplicity, fairness, transparency and predictability. There is only one way to incorporate these four critical principles in the U.S. tax code: broad, bipartisan reform.”