WASHINGTON, D.C. – U.S. Sen. Robert Menendez today urged Senate Republicans to join Democrats in passing the Small Business Jobs and Tax Relief Act of 2012 which would give businesses a tax credit for hiring new workers.
According to a new independent report by the Regional Economic Models, Inc (REMI), the bill would create an estimated one million new jobs across the country, including nearly 30,000 in New Jersey.
“When it comes to driving our economy and creating new jobs, our small businesses are the real engines,” said Menendez. “We have nearly 200,000 small businesses in New Jersey. Congress must pass this bill to make it easier for these job creators to succeed, grow and hire.”
The Senate yesterday voted to proceed to debate on the measure. Under the Senate Democrats’ legislation, business owners who hire new workers or give raises to current employees would get a 10 percent tax credit. With a maximum increase in eligible wages of $5 million per employer and the amount of the credit capped at $500,000, the benefits of this tax credit will be targeted on America’s small businesses. This legislation would also cut taxes for firms that invest in new equipment, allowing more than two million businesses to grow faster.
Congressional Republicans propose an across-the-board 20 percent income tax deduction for all businesses that employ fewer than 500 people.
“I’m pleased my Republican colleagues are allowing this critical jobs bill to come to a debate so Americans can see the stark difference in our proposals to help give a boost to small businesses,” said Menendez. “My fellow Democrats and I are fighting for common sense, targeted tax relief to put money back in the pockets of true job creators. Republicans’ broad and costly alternative would pad the profits of the mega-rich and special interests under the guise of small business support. I hope this debate will change their course, leading to action and progress, rather than rhetoric and posturing.”