The bill, sponsored by House Majority Leader Cantor (R., Va.), would provide a 20 percent tax deduction to most businesses with fewer than 500 employees.
“We know over the past three years there has been a 23 percent decline in small business start ups,” Cantor told CNBC’s “Squawk Box”on Wednesday. “We're trying to get job creation through small businesses back in the game.”
There are plenty of business people who would welcome the tax cut. The International Franchise Association, for one, issued a statement on Wednesday announcing its support for the legislation.
“Though the best approach for tax policy to spur long-term job creation by franchise businesses would be comprehensive tax reform, rather than piecemeal fixes, the Small Business Tax Cut Act would spur growth until a complete overhaul is possible,” said Judith Thorman, the IFA’s senior vice president for government relations and public policy.
We asked members of our Small Business Councilto tell us whether they think a 20 percent tax cut — however theoretical — would help them hire, spend, and grow their businesses.
Most business owners agreed that a tax cut would be nice. And, sure, they’d be inclined to hire if they had a little more spare cash.
“I think a 20 percent tax cut would encourage small business spending and hiring,” said Beezer Molton, owner of Half Moon Outfitters. “If nothing else, small business owners may keep more money in their businesses. This, coupled with being more profitable, would be a strong force for growth.”
Others said that the quick-fix of a tax cut, without addressing the underlying problems in government, would not create stronger businesses long-term. For them, Congress needs to reduce what they see as onerous regulations.