Last week the House, with help from California congressmen like Brian Bilbray, passed the Small Business Tax Cut. A tax cut! No doubt this important cut will be held up in the Democrat-controlled Senate, but for now this is very good news.
The effect on California can’t be overstated. As of 2009, in California, there are 691,479 small businesses with between 1 and 500 employees employing 6,541,800 individuals. From 2005 to 2008, small business created a net total of 391,672 new jobs in California But from 2008 to 2009 a net total of 488,614 small business jobs were lost.
According to a study from well-known Fiscal Associates, Inc., enacting this tax cut will yield $112 billion more in GDP, create 194,000 jobs, and lead to a 2.24% increase in business capital across the United States. Small business is the lifeblood of our economy and these are exactly the kinds of real solutions that will help our economy recover.
Finally some good news out of DC!