Senator Boxer: Supporting Small Business
Thursday, July 30, 2009
Small businesses are the real engines of our economy. They employ about half of all private sector employees and pay nearly 45 percent of the total U.S. private payroll. They also generate the majority of new jobs in America and produce about 13 times more new patents per employee than large firms.
But in tough economic times, small businesses can be especially vulnerable. That is why I am supporting the Small Business Jump Start Act of 2009, S.1402. This legislation would amend the Internal Revenue Code of 1986 to increase the amount allowed as a deduction for start-up expenditures, making it significantly easier for small businesses to open their doors.
The expense to start a new business is often high and it can take years to recoup those expenses even in a successful business. In fact, many studies show that it can take a business four years to actually have a prospect of surviving for the long term. Our legislation is designed to help small businesses through their first year. It lessens the tax burden on new small businesses by doubling the deduction they can take for start-up expenses to $10,000. It also widens the pool of businesses eligible to take the full amount of the deduction in their first year of business. The bill is supported by the U.S. Chamber of Commerce, the National Federation of Independent Businesses, the National Association of the Self-Employed, and the National Association of Small Businesses.
If we want our economy to again thrive, providing a helping hand to small businesses is vital. The Small Business Jump Start Act of 2009 is a large step in that direction. I fully support its goals and will work for its passage.
U.S. Senator Barbara Boxer