WASHINGTON, D.C. - U.S. Rep. Gabrielle Giffords today voted for The Small Business Tax Relief Act of 2007, a measure that extends tax credits for small-business owners. The act, which Giffords co-sponsored, passed 360-45 with strong bi-partisan support.
“As a former small business owner, I know that running a successful business takes a lot of hard work,” said Giffords, the former president and CEO of Tucson's El Campo Tire. “This act will increase economic opportunity for America's small business owners.”
The act extends the Work Opportunity Tax Credit (WOTC) for one year. This credit provides employers with business tax credits for wages paid to employees from targeted groups, such as veterans and individuals living in empowerment zones, enterprise communities and recipients of certain public assistance programs. The WOTC serves as an incentive to encourage employers to hire individuals who often experience barriers to work.
The act also raises the amount of capital spending small businesses tax deductions from $112,000 to $125,000. And it allows employers whose employees receive tip wages to continue filing for full tip credit even if the federal minimum wage is raised.
Both the House and the Senate have passed legislation to raise the minimum wage from $5.15 an hour to $7.25 an hour over two years. The Small Business Tax Relief Act, along with those measures, will be combined into a compromise minimum wage bill and sent to the White House for the President to sign into law.
“I am proud of my vote,” Giffords said. “Passage of this act moves us closer to enacting both a tax cut for small businesses and a federal minimum wage increase.”