Jobs Bill Passes, Delivers Tax Cuts to Small Businesses
Jobs Package to Help Small Businesses Stay Open, Hire New Workers
Congressman Henry Cuellar (TX-28) today helped pass a jobs package in the House that includes $13 billion worth of tax breaks for businesses to hire unemployed workers, plus a payroll tax holiday and increased tax write-offs for the nation’s small businesses. The package aims to help stabilize America’s small businesses while creating tax incentives to hire new workers.Congressman Henry Cuellar (TX-28) today helped pass a jobs package in the House that includes $13 billion worth of tax breaks for businesses to hire unemployed workers, plus a payroll tax holiday and increased tax write-offs for the nation’s small businesses. The package aims to help stabilize America’s small businesses while creating tax incentives to hire new workers.
"This package immediately helps businesses hire unemployed workers while providing tax cuts to keep small businesses alive," said Congressman Cuellar. "As a former small business owner, I understand how valuable these tax cuts are and how tax breaks can be a lifeline to small businesses in these tough economic times."
The House passed H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act, by a bipartisan vote of 217 to 201 Thursday. The package provides employers with incentives to hire and retain new employees by exempting employers from paying the employer share of social security taxes in 2010 (6.2% of the first $106,800 in wages) if the new employee had been unemployed for at least 60 days. The bill also provides employers with a $1,000 income tax credit for every new employee they continue to employ for 52 weeks and includes a payroll tax holiday for businesses that hire unemployed workers.
In order to help small businesses recover from economic losses, the bill extends capital expenditure tax deductions up to $250,000 for small business expenditures in 2010. These combined business tax credits are estimated to create 300,000 jobs nationwide.
"Passing this bill is an immediate measure to help get Americans back to work," said Congressman Cuellar. "In December, the House passed a robust jobs bill and today we’ve worked with the Senate to stop the stalling on the legislation and help American businesses hire new workers."
In 2009, Congress passed the American Recovery and Reinvestment Act which provided small business tax credits and widespread tax cuts for 95% of all hard-working Americans. In fact, $4.2 billion in tax cuts went to working families across Texas, including over 274,000 families in the 28th District of Texas.
Two months ago, the House passed the Jobs for Main Street Act to rebuild highways, expand small business lending and support new hires for schools, fire and police departments. The HIRE Act, which passed the House Thursday, is a revised bipartisan jobs bill aimed to provide businesses with immediate tax cuts to hire new workers.
The new package also extends the Highway Trust Fund, allowing tens of billions of dollars in new infrastructure investments nationwide. Texas stands to gain $4.9 billion in highway transportation funds thanks to the extension provided by the bill.
"Our highways in Texas move goods, commerce and agricultural products supporting hard-working Texans, small businesses, ranches and farms," said Congressman Cuellar. "That’s another reason why this bill is a good gain for Texas."
Over the next 10 years, the HIRE Act is fully paid-for, as Congress will adhere to strict Pay-As-You-Go (PAYGO) spending rules authored by the fiscally-conservative Blue Dog Coalition, of which Congressman Cuellar is a member. This February, President Obama signed PAYGO back into law. Similar spending rules are credited with having helped create the fiscal surpluses of the 1990s.
Congressman Henry Cuellar is a member of the U.S. House Homeland Security, Agriculture, and Government Oversight & Reform Committees in the 111th Congress. Accessibility to constituents, education, health care, economic development, and national security are his priorities. Congressman Cuellar is also a Senior Whip and member of the Blue Dog Coalition.