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Current Congress Legislation - Essay Example

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Summary
Mary Landrieu [D-LA] has sponsored this bill. The bill aims to extend some of the provisions, which are expiring in Internal Revenue Code of 1986 that related to small businesses. The bill extends expiring provisions and provides temporary increase in deduction for startup…
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Current Congress Legislation
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Current Congress Legislation

Download file to see previous pages... Taxing small businesses fairly is a very important step in promoting them. American is strong due to the important role played by small businesses. Statistics indicate that more than 90 percent of all employers are small businesses. Therefore, if small businesses are not healthy, reducing unemployment in America is easy.
Economists estimate that value of output from small businesses is 50% of non-farm GDP. With such a huge amount of output for the country, promoting small businesses is good for the American economy. The same companies are responsible for producing much of the knowledge that gives America competitive advantage over competitors. Small firms produce more patent per employee than large companies do. This suggests that without small firms, knowledge creation would take a beating.
Small businesses in America are found everywhere. The numbers of small businesses are estimated at more than 22 million. A law that is beneficial to this huge number of small businesses will be felt in virtually every neighborhood in America. By virtue of their spread, they employ as much as 50% of all employees in private sector. Another important contribution of small businesses is exporting ("Office of Advocacy - Press Releases - Small Businesses Are Important Players in U.S. Business and Job Growth”). Currently, American is facing trade deficit because Americans import too much consumption goods more than export. By exporting, small business help, prevent the present trade imbalance from getting worse. Approximately 97% of American exporters are small businesses who export goods and services values as 27%of total export.
Small businesses in America are started at a rate of half a million per year. This explains their capacity for creating jobs for Americans. If they are supported, more of these small businesses would succeed.
Lastly, even the big Americans corporations that pay billions in tax every ...Download file to see next pagesRead More
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