In the News

Expressing his support for small business tax cuts and deficit reduction, Congressman Gerry Connolly voted Thursday to pass legislation that will cut taxes for small businesses, provide tax incentives in the private sector to hire new employees, extend tax credit bonds to state and local governments, and continue funding for highway and transportation programs.

 The legislation -- H.R. 2847, The Hiring Incentives to Restore Employment Act -- passed the U.S. House of Representatives by a bipartisan vote of 217-201. It is expected to be signed into law by President Obama. 

In December 2009, Connolly voted against the House’s original $154 billion jobs bill.  He opposed that legislation because it was funded by increasing the deficit by $75 billion and using excess TARP bank bailout funds.  Connolly made it clear in his statement at the time that he looked forward to a better bill that would still spur economic growth without increasing the deficit. 

In December, after voting against that spending bill, Connolly said, “I sincerely hope to be able to support final passage of responsible legislation that strikes the proper balance between the need to pay down the deficit and the desire to further boost the economy.”  After voting today in favor of the new bill, he said, “This bill achieves that proper balance.”

Known as the HIRE Act, the bill passed today exempts businesses from Social Security taxes on new hires in 2010, offers a $1,000 tax credit for employees retained for one year, extends $4.5 billion in qualified tax credit bonds to state and local governments, and continues funding for highway and transit programs.  The legislation will also reduce the federal budget deficit by $1 billion over 10 years.  The legislation is paid for by cracking down on foreign tax evaders and delaying a tax break employed by multinational companies. 

“Unlike the previous bill which I opposed, this bill cuts taxes for small businesses and reduces the deficit by $1 billion over the next ten years and is fully paid for,” Connolly said.  “Clearly, House leadership and the Administration got the message that more deficit spending is not what we need.”

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