BREAK IN TRANSCRIPT
Ms. SEWELL of Alabama. Mr. Speaker, today, I re-introduced H.R. 5783, the Small Business Start-up Savings Accounts Act of 2016. Small businesses are the backbone of our economy and are an essential component of our continued economic recovery. These businesses generate half of our nation's gross domestic product and employ at least half of its workforce. The creation of small businesses allows Americans to produce things right here in America, as well as continue to out innovate and out-build the rest of the world.
Unfortunately, the average entrepreneur spends roughly $80,000 in first year start-up costs, and these recovering economic times have made it even more difficult for prospective business owners to access vital start-up capital.
As our economy continues to strengthen, it is important that Congress provides incentives and opportunities for entrepreneurs to launch new businesses and provide much needed jobs to our economy. For these reasons, I am re-introducing The Small Business Start-up Savings Accounts Act to assist individuals in starting their own businesses.
This bill expands much needed lending to millions of small businesses and offers tax incentives to help small businesses grow, hire, and fuel our economy. The bill would allow entrepreneurs to contribute up to $10,000 per year into a tax-free account, which could be used to purchase equipment, facilities, marketing, training, and accounting. Contributions to the account could accumulate up to $150,000 and be taken out tax-free.
This is a common sense approach to encourage economic growth, and Congress should spend more of its time on legislation like this that can have a positive impact on average Americans. I urge all of my colleagues to co-sponsor this legislation and I yield back the balance of my time.
BREAK IN TRANSCRIPT