DearColleague.us

Letter

From: The Honorable Frank Kratovil Jr.

Sent By: michael.tierney@mail.house.gov

Bill: H.R. 1552

Date: 6/10/2009

REDUCE TAXES ON NEW SMALL BUSINESSES

H.R. 1552 The Small Business Formation and Job Creation Act

Cosponsors (74): Adler, Altimire, Arcuri, Barrow, Bartlett,Boren, Calvert, Cao, Carney, Chaffetz,

Childers, Costa, Cuellar, Cummings, Lincoln Davis, Dent, Driehaus, Emerson, Fleming, Fudge, Gallegly,

Gerlach, Giffords, Grayson, Hall, Hill, Himes, Holden, Hunter, Kagen, Kirk, Kirkpatrick, Kissell,

Kosmas, Kratovil, Lamborn, Lance, LaTourette, Latta, Lee, Lofgren, Lummis, Manzullo, Marchant,

Markey, Massa, McIntyre, Jeff Miller, Minnick, Mitchell, Dennis Moore, Patrick Murphy, Scott

Murphy, Myrick, Nye, Paul, Paulsen, Periello, Peterson, Pitts, Polis, Rodriguez, Reichert, Rooney, Rush,

Schock, Schrader, Shuler, Simpson, Tiberi, Titus, Wexler, Charles Wilson, Wittman

Dear Colleague,

Small business owners and entrepreneurs are the engine of the American economy. They are leaders in innovation and creators of nearly four out of every five new jobs. Additionally, small business will play a central role in our economic recovery; so we must do everything that we can to support the growth and investment of existing business and spur the formation of new ones.

H.R. 1552, The Small Business Formation and Job Creation Act, will raise the new business start-up deduction from $5,000 to $20,000, thereby reducing a key barrier for potential entrepreneurs. This bipartisan bill, which is strongly supported by the NFIB, includes a phase out limit at $75,000 and would apply for tax years 2009- 2011. Increasing the start- up deduction for small businesses will free up much needed capital that can be utilized to create jobs, re-invest, and grow the economy.

Data from the past two recessions indicate that small business formation increases during periods of high unemployment. This bill will serve as an added incentive for those entrepreneurs to get off the sideline and create a new engine for job growth. The increased tax incentive is designed to motivate entrepreneurs to act now instead of waiting for the recession to pass.

Increasing the start-up deduction will facilitate and encourage small business formation, job creation, and innovation that are desperately needed during these tough economic times. We urge you to cosponsor this common sense small businesses legislation because it is a good first step to jump starting our

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economy.

If you would like to co-sponsor this bipartisan legislation or have any questions please contact Mike

Tierney with Congressman Kratovil at Michael.Tierney@mail.house.gov

<mailto:Michael.Tierney@mail.house.gov> or Kelly Dixon with Congressman Lee at

Kelly.Dixon@mail.house.gov <mailto:Kelly.Dixon@mail.house.gov> . Thank you for your consideration.

Sincerely,

/s /s

Frank M. Kratovil, Jr. Christopher J. Lee

Member of Congress Member of Congress