NSBA Reaction to President Obama’s Jobs AddressSeptember 8, 2011
Following President Barack Obama’s jobs address to the joint session of Congress this evening, NSBA echoes the President’s calls for bipartisanship, and urges Congress and the administration to act now and act in a bipartisan manner on proposals that will help America’s lagging small-business community. The following statement is from NSBA President and CEO Todd McCracken.
“Providing a 50 percent cut of the payroll tax, and a complete payroll tax holiday for new hires is a positive and immediate step that will help millions of small businesses and their employees. Offering a payroll tax holiday can help all small employers—not just the profitable ones who benefit from an income tax cut—with some much needed cash while at the same time making it a bit more affordable to bring on new employees. Additionally, extending the current section 179 expensing level through 2012 is a good move.”
“In addition to the payroll tax cut, Obama’s calls for a $4,000 credit for employers who hire an unemployed veteran, expediting payments to small federal contractors and repealing the three percent withholding provision all will provide significant help to those businesses eligible, but may not have a significant, broad impact on all small businesses.”
“While these near-term fixes can help a good chunk of businesses, they are temporary and may not be enough to cause a business to hire who otherwise wouldn’t consider bringing on a new employee who will have significant costs far beyond the tax cut expiration dates.”
“We are pleased that the President again underscored easing the regulatory burden on small business, however there continues to be a disconnect between his words and what various agencies under his purview are doing—the new National Labor Relations Board posting requirement is a perfect example.”
“We support the President’s aim to reduce the corporate tax rate, but it cannot be done in a vacuum—broad reform of the entire tax code is necessary, not just for corporate entities. The overwhelming majority of small businesses are pass-through entities and therefore pay taxes through their individual income tax. Allowing the smallest businesses to pay a much higher tax on their business income than a multinational corporation defies the President’s calls for fairness. This would be particularly unfair should those pass-through entities then be hit by a repeal of 2001 and 2003 income tax cuts”