White House: Key to recovery is small business bill, not tax cuts for the wealthy

"What BoehnerJohn Andrew BoehnerZeal, this time from the center Juan Williams: The GOP's deal with the devil Hillicon Valley: Trump hits China with massive tech tariffs | Facebook meets with GOP leaders over bias allegations | Judge sends Manafort to jail ahead of trial | AT&T completes Time Warner purchase MORE suggests independent economists have said would only impact 3 percent or less of small businesses, at a cost of some $700 billion to the federal budget," Burton told reporters. "What the president's proposing is eliminating capital gains on small businesses and freeing up lending so that we actually can create a situation where small businesses can create jobs." 

The small-business bill provides about $12 billion in tax relief that includes a tax exemption for capital gains for small business owners. It also creates a $30 billion lending pool. The Senate is expected to take up the measure when members return to Washington from the August recess.

In a speech before the City Club of Cleveland, in Cleveland, Ohio, the Minority Leader called on Obama to work with Republicans to stop the coming tax hike scheduled to take place in January, when Bush-era tax breaks expire. 

"Unless Congress acts, virtually every American will see their taxes go up on Jan. 1, 2011," Boehner said, adding, "That's why President Obama should work with Republicans to stop all of these job-killing tax hikes."

Obama has vowed to continue the tax cuts benefiting individuals earning less than $200,000 and couples making less than $250,000. But Republicans — and a growing number of Democrats —  contend the slipshod economic recovery demands all of the tax cuts to be extended to keep small businesses from seeing a tax hike next year. 

"According to an analysis by the nonpartisan Joint Tax Committee, Congress's official tax scorekeeper, half of small business income in America — half — would face higher taxes under the president's plan," Boehner said.

Debate on the issue is expected to heat up when lawmakers return this fall. Burton on Tuesday said the issue will probably have political implications in November's election. 

"There's a big choice in this election, and that choice comes down to, are we going to move forward, or are we going to move back to the policies that got us into this economic crisis?" he said.