Report shows Senate tax-relief bill would create nearly 1 million jobs

By Alexander Bolton - 07/10/12 11:31 AM ET

Senate Democrats are touting a new report by a nonpartisan firm showing their small-business tax bill would create nearly 1 million jobs.

Regional Economic Models, Inc., an independent Massachusetts-based firm that specializes in economic modeling, estimates the legislation will add nearly 1 million new jobs to the U.S. economy.

About 630,000 jobs would be created among small businesses.

The proposal would give small business a 10 percent tax cut in exchange for hiring new workers or raising employee pay. It will also allow businesses to fully deduct the cost of significant investments made in 2012. Current law caps the write-off of those costs at 50 percent.

“Creating close to one million jobs would put a meaningful dent in the unemployment problem,” said Sen. Charles Schumer (D-N.Y.), chairman of the Senate Democratic Policy and Communications Center.

“This tax cut is not a cure-all, but it could be a difference-maker for small firms on the fence about adding payroll. After last month's sluggish jobs numbers, we may be on the verge of a rare moment of agreement on how to help the economy,” he said.

Most of the jobs would be created in the healthcare and social assistance sector and in the retail sector.

The Senate is scheduled to vote at 2:25 p.m. on Tuesday to end debate on a motion to proceed to the small-business tax relief legislation. It’s the first part of a broader offensive Senate Democrats plan to wage on taxes this month.