In an effort to increase hiring among small businesses, lawmakers in Congress recently proposed a new piece of legislation to lower taxes.
The proposal, which would cut small business taxes by $29 billion, survived a preliminary vote in the Senate and would allow firms to get tax credits of up to $500,000 if payrolls increase by more than $5 million. The provisions would also allow businesses to deduct expenses stemming from purchases of new property and equipment made this year.
Those who are in favor of the Small Business Jobs and Tax Relief Act say that the money firms save would help increase employment levels.
“This tax cut is not a cure-all, but it could be a difference-maker for small firms on the fence about adding payroll,” said Sen. Charles E. Schumer (D-N.Y.), according to The Associated Press. “After last month’s sluggish jobs numbers, we may be on the verge of a rare moment of agreement on how to help the economy.”
According to analysis from Regional Economic Models, passage of the bill would result in 990,592 new jobs, adding $87 billion to the gross domestic product of the U.S.