After 23 consecutive months of job growth and the signing of 18 small business tax cuts, it should be clear that President Obama and the Democratic Party understand the vital role small businesses play in our economy. After all, small businesses have been responsible for 2 out of every 3 new jobs in the U.S. and employ half of workers in the U.S. That is why the President has kept small businesses in mind with every piece of legislation that has come to his desk.
As we near the two year anniversary of the passage of the Patient Protection and Affordable Care Act, we can look forward to the ways in which the act will help small business owners. In 2014, small businesses that offer health care to their employees will see an increase in tax credits from 35 to 50 percent, which will save small businesses thousands of dollars a year. 2014 will also see the creation of new Affordable Insurance Exchanges that will offer small businesses the same purchasing power of large businesses so that small businesses no longer have to pay an average of 18 percent more than large businesses for the same coverage.
Another key piece of legislation signed by the President was the Small Business Jobs Act, which allowed self-employed workers to deduct 100 percent of their health care coverage for themselves and their families in 2010, crucial at a time when the economy was still recovering. And speaking of recovery, 32 percent of all federal contracting dollars from the Recovery and Reinvestment Act of 2009 went to small businesses.
Following the President’s leadership in aiding small businesses, the Democratic National Committee will officially launch its Small Business Owners’ Council in early March to ensure that the voices of small business owners are always heard as the economy continues to improve. President Obama has already made many new proposals to help small businesses going forward, including his proposal to permanently double the amount of start-up expenses entrepreneurs can deduct from their taxes from $5,000 to $10,000. There are misperceptions among many Americans about President Obama’s relationship with the small business community, and we need your help to start setting the record straight.