WASHINGTON, D.C. – House Republican Whip Eric Cantor (R-VA) today issued the following statement on the Obama Administration’s small business announcement:

“It is encouraging that President Obama is now talking about small businesses, and Republicans have solutions focused on helping those job creators get back on their feet. Though the plan announced by the administration today is a welcome sign – which we support – the truth is that it only affects a tiny portion of the small business loan market, which leaves many small businesses and their workers in the cold. Republicans understand that one way to help all small businesses is to get banks healthy again, and get essential credit lines flowing.

“Despite this announcement, it is regretful that one in four workers in America is employed by a small business that will see their taxes raised under the President’s budget.  Republicans know that raising taxes on small businesses will only result in more workers losing their jobs, which is why we offered an innovative plan with a new type of tax relief designed to revitalize struggling small businesses and help middle-class families.

“Republicans are hopeful that the President will join us in providing more help for these struggling job creators than the plan announced today. We hope that the President will come back to the political center where he so effectively campaigned, so that we can work together in a bipartisan way to help small businesses overcome the economic challenges they face.”
 

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The House GOP Economic Recovery Plan & Small Businesses:

Unlike The Democrats' Tax Increases, The House Republican Economic Recovery Plan Provided Crucial Tax Relief To Small Businesses: Small businesses (those employing less than 500 individuals) employ about half of all Americans, yet they can be subject to tax rates that siphon away one-third or more of their income. House Republicans propose to allow small business to take a tax deduction equal to 20% of their income. This will immediately free up funds for small businesses to retain and hire new employees.

Read The Full Plan Here: http://republicanwhip.house.gov/jobs/

The Facts About The Democrats' Budget & Small Businesses:

The Largest Tax Increase In American History: The Democrats' budget will raise taxes by $1.4 trillion over the next ten years.

Harming Small Businesses: The Democrats' budget will raises income taxes harming the many small businesses that pay taxes at the top two individual rates. According to the National Association of Manufacturers, 68 percent of American manufacturers pay taxes at the individual income tax rate and most of them will see their taxes increase under the Democrats' budget.

Bringing The Death Tax Back: The Democrats' budget brings back the estate tax – currently scheduled to be repealed next year – re-imposing a heavy tax burden on small businesses and family farms.

Even The Democrats Admit That At The Very Least Their Budget Will Increase Taxes On Small Businesses Employing Nearly A Quarter Of The U.S. Work Force. "The Obama administration’s response is that the tax increase would hit only the top 3 percent of small businesses. … But small-business owners and their supporters say that the 3 percent figure is misleading because that top group is responsible for a disproportionately large number of the jobs created by small businesses. 'The businesses that are most likely to be hit by this tax increase employ about a quarter of the U.S. work force,' said Bill Rys, tax counsel for the National Federation of Independent Business." (Victoria McGrane, "Small Manufacturers Cry Uncle," Politico, 3/11/09)

The National Association Of Manufacturers Estimates That Most Of The 68 Percent Of Small Manufacturers That Pay Taxes At The Individual Income Tax Rate Will Be Hit By A Tax Increase Under The Democrats' Budget. "The country’s small manufacturers would be hit especially hard by Obama’s tax plan, said Dena Battle, director of tax policy for the National Association of Manufacturers. According to NAM’s data, 196,000 manufacturers file as so-called pass-through entities, meaning that the owner pays the firm’s business taxes at the individual income tax rate. That is a full 68 percent of all American manufacturers. And the average taxable income of that group is $570,000 – well above the $200,000 individual and $250,000 joint-filer income levels that Obama’s plan would tax at higher rates, Battle said." (Victoria McGrane, "Small Manufacturers Cry Uncle," Politico, 3/11/09)