Washington Republicans "Rewarding Corporations That Create Jobs and Profits Overseas" 16OKT10

THE REPUBLICANS CONTINUE TO DECEIVE THE AMERICAN ELECTORATE BY CLAIMING TO BE CONCERNED ABOUT THE ECONOMY AND UNEMPLOYMENT WHILE PROTECTING THE TAX LOOPHOLE PROVIDING TAX BREAKS TO COMPANIES FOR CREATING JOBS OVERSEAS, OUTSOURCING, RATHER THAN INVESTING IN AMERICA. 
 
WASHINGTON – In this week’s address, President Obama laid out a policy agenda that would strengthen our economy and create jobs right here in America by offering tax incentives to businesses that hire new employees, making the research and experimentation tax credit permanent and providing a tax cut for clean energy manufacturing.  The  President also wants to close tax loopholes worth billions of dollars that encourage companies to invest in overseas, while Republicans in the House have voted 11 times in just the last four years to keep those loopholes open.
 
After a decade of hardship for middle class families, and a recession that wiped away millions of jobs, we are in the middle of a tough fight to rebuild this economy and put folks back to work.

Winning this fight will not depend on government alone.  It will depend on the innovation of American entrepreneurs; on the drive of American small business owners; on the skills and talents of American workers.  These are the people who will help us grow our economy and create jobs.

But government still has an important responsibility.  And that’s to create an environment in which someone can raise capital to start a new company; where a business can get a loan to expand; where ingenuity is prized and folks are rewarded for their hard work.

That’s why I fought so hard to pass a jobs bill to cut taxes and make more loans available for entrepreneurs.  It eliminated the capital gains taxes for key investments in small businesses.  It increased the deduction to defray the costs of starting a company.  And it’s freeing up credit for folks who need it.  In fact, in just the first two weeks since I signed the bill, thousands of business owners have been able to get new loans through the SBA.

But we need to do more.  So I’ve proposed additional steps to grow the economy and spur hiring by businesses across America.  Now, one of the keys to job creation is to encourage companies to invest more in the United States.  But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries.

I want to close these tax loopholes.  Instead, I want to give every business in America a tax break so they can write off the cost of all new equipment they buy next year.  That’s going to make it easier for folks to expand and hire new people.  I want to make the research and experimentation tax credit permanent.  Because promoting new ideas and technologies is how we’ll create jobs and retain our edge as the world’s engine of discovery and innovation. And I want to provide a tax cut for clean energy manufacturing right here in America.  Because that’s how we’ll lead the world in this growing industry.

These are commonsense ideas.  When more things are made in America, more families make it in America; more jobs are created in America; more businesses thrive in America.  But Republicans in Washington have consistently fought to keep these corporate loopholes open.  Over the last four years alone, Republicans in the House voted 11 times to continue rewarding corporations that create jobs and profits overseas – a policy that costs taxpayers billions of dollars every year.

That doesn’t make a lot sense.  It doesn’t make sense for American workers, American businesses, or America’s economy.  A lot of companies that do business internationally make an important contribution to our economy here at home.  That’s a good thing.  But there is no reason why our tax code should actively reward them for creating jobs overseas.  Instead, we should be using our tax dollars to reward companies that create jobs and businesses within our borders.

We should give tax breaks to American small businesses and manufacturers.  We should reward the people who are helping us lead in the industries of the future, like clean energy.  That’s how we’ll ensure that American innovation and ingenuity are what drive the next century. That’s how we’ll put our people back to work and lead the global economy.  And that’s what I’ll be fighting for in the coming months.

Thank you.

One Week Later, Nearly 2,000 Small Businesses Approved for SBA Loans Due to Jobs Act 5OKT10

Posted by SBA Administrator Karen Mills on October 05, 2010 at 04:04 PM EDT

Late yesterday, just a week after President Obama signed the Small Business Jobs Act of 2010, nearly 2,000 small business owners who had been waiting for SBA-backed loans had been approved and will soon have those loan funds – totaling nearly $1 billion – in hand.  That’s a quick turnaround, and it’s an example of this Administration’s deep commitment to giving entrepreneurs and small business owners the support they need to grow and create jobs.
Here’s how we made it happen.
After the Recovery Act passed last year, SBA increased the guarantee and reduced the fees in our top two loan programs.  That two-part formula worked.  We saw a significant rebound in SBA lending, helping unlock much-needed capital for small businesses.  All told, SBA took just $680 million in taxpayer dollars and turned it into nearly $30 billion in lending support to about 70,000 small businesses.  That’s a strong bang for the taxpayer buck.
Even though Congress renewed funding for the increased guarantee and waived fees several times, SBA had to stop making these loans in May when the agency’s authority for the higher guarantees ended.  Shortly thereafter, the funds for fee waivers were used up.   As a result, we had to start putting applicants on a stand-by waiting list – a “queue” – hoping that these successful loan enhancements would once again be available.
Over the summer, that queue grew to include more than 1,000 entrepreneurs and small business owners.  The Administration continued to push for Congress to pass a small business jobs bill, knowing that these small businesses – and many more – were ready to start growing and creating jobs as soon as they got their SBA loan.
Finally, last week, with the stroke of the President’s pen, the SBA got $505 million more for these effective and proven enhancements, which will support an estimated $14 billion in new lending.
As of late yesterday, just one week later, we had pushed out nearly 2,000 loans – clearing out all the loans in the queue. And, today we’re moving ahead with approving thousands more SBA Jobs Act loans.  With each loan, we’re putting capital in the hands of America’s entrepreneurs and small business owners so they can continue to drive economic growth and create jobs in communities all across the country.  And this is just one of the many benefits in the Small Business Jobs Act, which can now deliver $55 billion in tax cuts and additional assistance for businesses that need loans.

Karen Mills is Administrator of the Small Business Administration