President Obama toured American Cord & Webbing Co., Inc., in Woonsocket, R.I., on Monday and in remarks promoted his Administration’s record on tax relief for small business, emphasizing the loan provisions in the Small Business Jobs Act. Good, straightforward remarks, and manufacturers especially welcome these tax provisions:
The law also accelerates $55 billion in new tax cuts for businesses both large and small that make job-creating investments over the next year. It eliminates capital gains taxes on key new investments made in small businesses until the end of this year. It dramatically increases the amount small businesses can write off on new equipment investments — and we want to do more, so that you can write it all off. These are tax cuts that can help America — help businesses like American Cord and Webbing that are making new investments right now. And it can help create jobs.
Agreed. Very good.
In his comments at the plant, the President did NOT mention the looming expiration of the 2001 and 2003 tax rates. It was a huge and obvious omission, because the higher tax rates could more than offset the targeted, limited, small tax benefits President Obama promoted Monday. For the thousands of small manufacturers — S Corporations and other pass-through entities — that file their business taxes at the individual rate, January 1 could bring a major tax increase when the top marginal rate jumps from 35 to 39.6 percent.
The President added a relatively mild partisan shot in his remarks:
When you vote against small business tax relief and you hold up a small business jobs bill for months, that doesn’t do anything to support small businesses like this one. It doesn’t do anything to support the outstanding workers at this company. It’s just playing politics. If you’re going to talk a big game, then you need to deliver.
OK. But then: When you fail to extend the 2001 and 2003 tax rates, that doesn’t do anything to support small businesses like the one the President has visited. It’s just playing politics. If you’re going to talk a big game, then you need to deliver.
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