President Obama signed into law this week the Small Business Jobs Act, which is intended to help small businesses by way of tax breaks and credits, as well as make it easier for small businesses to obtain much-needed loans and hire additional employees.
"Now this is important because small businesses produce most of the new jobs in this country. They are the anchors of our Main Streets," the president said.
The $30 billion legislation creates a lending fund for small businesses and includes an additional $14 billion in tax breaks for small companies.
Democrats backed the bill because small businesses had trouble getting loans after the financial crisis that began late in 2007, and they estimate the incentives could provide up to $300 billion in new small business credit and create 500,000 new jobs, according to a Reuters report. Republicans say the bill is a smaller version of the Wall Street bank rescue effort and blocked it in the Senate for weeks before two Republicans, George Voinovich of Ohio and George LeMieux of Florida, broke ranks and ended a filibuster.
"If the president really wants to help small businesses, he should insist that Congress not leave town without cutting spending and stopping his tax hike to help create jobs – particularly small business jobs,” Rep. John A. Boehner (R-OH) said in reference to a complete repeal of Bush-era tax cuts.
The Obama administration wants the Bush tax cuts to expire for the top 2 or 3 percent of earners, which are individuals who make at least $200,000 or families who earn at least $250,000.
“By failing to act, the president is turning his back on American families and small businesses,” Boehner said.