The American Jobs Act Will Help Small Businesses Create Jobs
By A. John Shoraka
Delaware’s small business owners should take a look at the various provisions of the American Jobs Act, President Obama’s plan for growing our economy and putting Americans back to work. The Act contains provisions that will put money back into the pockets of small business owners and give them new tools to grow their businesses and create jobs. Over the long run, it will make investments in our nation’s schools and infrastructure—creating more small business contracting opportunities.
President Obama sent the American Jobs Act to Congress to build on the 17 tax cuts for small businesses he has already signed into law. It will cut payroll taxes in half (to 3.1%) for 98% of businesses, eliminate payroll taxes for small businesses that create new jobs and contains tax credits for small businesses who hire unemployed veterans, service-disabled veterans, and workers who have been unemployed for at least six months. These tax cuts are designed for maximum impact on job creation, to give small business owners more money to invest in their business and hire new workers.
At the same time, there are provisions in the bill to make long term investments in America’s economy. It contains billions of dollars in investments in our roads, railways, and airports, including the creation of a National Infrastructure Bank. These investments will mean contracts that increase the bottom lines of small firms and give them the revenue they need to create jobs. To further benefit small contractors provisions of the bill would raise the limit on SBA-guaranteed surety bonds to $5 million. The bill also calls for modernizing 35,000 schools, which will provide work for small construction companies while strengthening our education system and training the next generation of entrepreneurs. It will expand broadband access to 98% of Americans to make it easier for entrepreneurs to start businesses and find new customers at home and abroad. These investments will put Americans back to work today, while modernizing our economy and increasing our global competitiveness in the 21st century.
Here in Delaware, Masley Enterprises, Inc. is owned by Frank and Donna Masley, who support provisions of the American Jobs Act that will help put people back to work and put more money back into the pockets of their workforce by cutting the payroll tax from 6.2% to 3.1%. This will also enable small businesses to put more money into their business and purchase more equipment, which creates more jobs for a business like Masley, which manufactures products in the U.S. Because Masley hire veterans, it would benefit from the “Returning Heroes” hiring tax credit of $5,600-$,9600 for each newly hired veteran. Masley is also considering the purchase of a warehouse, which the bill would support through its investment incentive for companies to purchase plants and equipment. The bill complements Masley’s efforts to support U.S. workers while supporting our troops – and Masley is just one of the many small businesses that will benefit from the Jobs Act’s provisions.
Of course, there are ways to support small businesses that don’t require new legislation. That’s why the President also ordered federal agencies to cut the time it takes them to pay small contractors in half, from 30 days to 15 days: accelerated government payments to small businesses frees up working capital and saves small business owners billions of dollars to put more money back into small businesses investments. Masley, for example, has already experienced faster government payments which enabled the company to repay loans faster, with less interest payments.
Job creation is President Obama’s top priority, and there are provisions in the American Jobs Act that are crucial to putting all Americans back to work. These are provisions that contain bipartisan ideas both parties have supported in the past, and it’s completely paid for. The President has called on Congress to pass these provisions, and pass them now. Small business owners like Frank and Donna Masley agree.