5 Major Tax Cuts to Help Small Businesses
Job growth starts with small business. That's why Democrats in Congress cut taxes for small businesses by over $80 billion. Small businesses created nearly two-thirds of new jobs over the last 15 years, and our work will help America's 27 million small businesses work our way out of the Bush recession.
But Republicans tried to block help for small businesses. They voted against 15 of the 16 tax breaks for small businesses enacted by this Congress.
Here are few critical tax cuts that Congress passed to grow small businesses and create new jobs:
- $12 billion in tax cuts and up to $300 billion in loans will allow businesses to create new private-sector jobs. Tax cuts established through the Small Business Jobs Act include:
- doubling and enhancing small business expensing and extending bonus depreciation
- allowing for 100% exclusion of capital gains on investments in small business
- doubling the deduction for start-up expenditures
- allowing self-employed taxpayers to deduct health costs for payroll tax purposes
- Businesses that hire unemployed workers will receive a payroll tax holiday and can double the amount they can write off for capital investments and equipment purchases. (HIRE Act)
- $40 billion in tax credits will help small businesses offer employee health insurance coverage, if they choose to do so. (Affordable Care Act)
- Businesses can use net operating losses from 2008 or 2009 to offset profits from five previous years, up from two years. This will help successful businesses that were hurt by the recession return to profitable growth and create jobs. (Worker, Homeownership, and Business Assistance Act)
- Reduces the required estimated tax payments for small businesses, and encourages investment by providing an exclusion of 75% (up from 50%) of capital gains for investors in small businesses. In addition, millions of dollars are being invested in innovative small businesses to help them flourish. (American Recovery and Reinvestment Act)