Fighting to Help Small Businesses
President Obama knows that entrepreneurs and small businesses are the backbone of an economy built to last. They employ half of all working Americans and create two out of every three new jobs, helping spur economic development in communities across our country while giving millions of families and individuals the opportunity to achieve the American dream. That’s why he’s cut taxes for small businesses 18 times and helped them get access to the capital they need to invest, hire, and grow.
Cutting taxes for small businesses
President Obama is focused on tax relief to help small businesses hire and invest now—building on the 18 tax cuts he’s already passed to support small businesses during the recovery
- Has a plan to extend middle class tax cuts, preventing 97% of small business owners from facing a tax increase on business income
- Passed 18 tax cuts to help small businesses grow and create jobs, including:
- 100% expensing for all businesses, to support investments in new equipment
- A tax credit to encourage the hiring of unemployed veterans
- The elimination of taxes on capital gains for key small business investments
- Doubling the deduction for entrepreneurs’ startup expenses
- Calling on Congress to cut taxes for businesses that are hiring, raising wages, and investing this year.
- Put forward a framework for tax reform that would simplify taxes for small businesses – who don’t have the same resources to navigate the tax code as large businesses
Mitt Romney would raise taxes on the middle class to pay for tax cuts for millionaires and billionaires.
- Would raise taxes for middle class American families to pay for tax cuts for the wealthiest—putting 30 million small businesses owners at risk of higher taxes
- Would eliminate taxes on the foreign profits of US companies, giving large corporations who can shift their profits offshore a new advantage over small businesses
- Has no plan that targets tax relief to small businesses that hire and invest
Supporting entrepreneurs and startups
President Obama is leading an all-hands-on-deck effort to ensure that America remains the world leader in entrepreneurship and innovation.
- The number of new business start-ups last year was up over 8 percent from when the President took office
- Signed legislation to make it easier for small businesses and start-ups to raise funds and create an IPO on-ramp specifically targeted to dynamic young businesses
- Doubled the deduction for entrepreneurs’ startup expenses
- Worked with the private sector to launch the Startup America Partnership, and as part of the partnership, the Obama administration launched two $1 billion initiatives for impact investing and early-stage seed financing
Small businesses suffered in Mitt Romney’s Massachusetts – and he has no plans to help entrepreneurs as president.
- Under Romney, the number of business start-ups fell by 10%, hitting their lowest point in his last year in office.
- When Romney took office, more entrepreneurs were starting small businesses than shutting them down. When he left, the opposite was true—the number of small businesses shrank during his term.
- Romney would slash annual domestic spending by one-fifth, hurting investments in education and infrastructure that entrepreneurs depend on.
Reducing regulations that hurt small businesses
President Obama is reforming regulatory burdens to help small businesses owners and entrepreneurs raise capital from investors more efficiently, so they can grow and hire quickly.
- Signed legislation making it easier for startups and small businesses to raise funds
- Worked to ensure that the federal government does not overburden small businesses
- Launched a government-wide review of current regulations, and executive agencies have submitted over 580 proposals for reducing regulatory burdens, a some of which will save small businesses more than $10 billion over the next five years.
Affordable health care for small businesses
Through Obamacare, President Obama has lowered health care costs for small businesses.
- Exempts 96% of all small businesses (those with fewer than 50 employees) from any employer requirements
- Obamacare will give small businesses access to the same purchasing power as large businesses, instead of paying 18% more than large firms do for the same health care coverage
- Provided tax credits for small businesses owner with less than 25 employees that offer their employees health insurance, which is worth up to 35% of the cost of coverage today and in 2014 will be worth up to half the cost of coverage
Mitt Romney would repeal Obamacare, ending benefits and putting control back in the hands of insurance companies.
- Would repeal the small business health benefits under Obamacare
- Would eliminate new tax credits for small businesses that offer health insurance to employees
Increasing access to small business loans
President Obama has made it easier for small businesses to secure loans and access the capital they need.
- Helped jumpstart more than 150,000 small businesses with Small Business Administration supported loans since he took office. Made it easier for local, private-sector lenders to extend credit to small businesses by increasing loan limits, eliminating fees, and expanding the maximum guarantee on SBA loans
- Supported private-sector investments in startup and high-growth firms in underserved communities and emerging sectors
- Signed into law new Treasury initiatives to support community banks and innovative state programs that extend more credit to small businesses
- Passed Wall Street reform that leveled the playing field for community banks, which many small businesses rely on for loans
- Helped small businesses win federal government business by awarding nearly $300 billion in prime contracts and more than $200 billion in subcontracting to small businesses
Helping small business compete in the global market
President Obama is committed to helping small businesses compete on a global scale, strengthening key lending programs that support exports.
- Fought to protect the Export-Import Bank, reauthorizing an institution which dedicates 85% of its work to small business and helps put small business exporters on a level playing field with competitors across the world
- Started the Global Access for Small Business Initiative to support $58 billion in small business exports over the next 5 years
- Launched BusinessUSA, a one-stop shop to make it easier for businesses to access the services and information they need to export
- Set a goal to double U.S. exports by the end of 2014—which the U.S. is on track to meet
- Working to forge the new Trans-Pacific Partnership, opening new markets to U.S. goods
