Casey Introduces First Bill of New Congress – Measure Focuses on Job Creation

Senator’s Proposal Would Give Businesses Who Hire or Boost Wages a Tax Credit

Small Businesses Across Pennsylvania Stand to Benefit

Washington, D.C. – Today, U.S. Senator Bob Casey (D-PA) unveiled his first bill of the new Congress, the Small Business Job Creation Act of 2013, which will give a tax break to businesses that hire new workers and increase wages. Based on current average weekly earnings of private sector employees, a business would receive a tax break of approximately $4,250 over the course of the year for hiring an additional employee.

“My top priority continues to be job creation, said Senator Casey.  “This measure is a common-sense step to incentivize small businesses to hire,” said Senator Casey. “Helping small businesses expand, protecting the middle class and fueling the economy is something both Republicans and Democrats should support.”  

The Small Business Job Creation Act of 2013 would:

  • Provide a tax credit of 10 percent of the excess year over year payroll increases. 
  • The credit is calculated by quarter and is a payroll tax (FICA) credit.   
  • In order to target the tax credit to small businesses, the proposed credit is capped at $500,000 per firm.
  • While it targeted to small businesses, all firms can benefit.
  • For companies with 100 or more employees, the increase in payroll must exceed 3 percent of qualified payroll for the quarter in the preceding year to qualify for the credit.

Senator Casey has led the fight to extend tax breaks for working families and small businesses.  Senator Casey was a supporter of an income tax break, which gave working families across Pennsylvania an extra thousand dollars on average.  He also led the fight for the 2 percent payroll tax cut for workers that was enacted for 2011 and 2012.  He also led in the effort to help small businesses hire workers, introducing the Small Business Job Creation Tax Act (S. 1330) in 2010 and 2009 to encourage businesses to add jobs and reverse cuts in salaries and worker hours.

A county-by-county breakdown of the number of Pennsylvania small businesses that could benefit from Senator Casey’s legislation is below:

Pennsylvania Establishments by Size of Business, 2009 

County

Small Business Establishments
( < 500 employees)

Small Business Establishments as a Percentage of All Establishments

Total

247,091

82.8

 


 

Adams

1,695

85.6

Allegheny

26,413

79.2

Armstrong

1,173

90.4

Beaver

2,826

82.3

Bedford

974

88.7

Berks

7,076

84.1

Blair

2,650

82.3

Bradford

1,133

84.5

Bucks

16,472

87.0

Butler

3,871

83.4

Cambria

2,875

83.6

Cameron

110

90.2

Carbon

1,022

89.6

Centre

2,658

83.6

Chester

11,725

84.6

Clarion

854

88.0

Clearfield

1,649

83.6

Clinton

640

87.6

Columbia

1,182

82.2

Crawford

1,851

87.8

Cumberland

4,429

77.1

Dauphin

5,209

75.9

Delaware

10,901

84.7

Elk

806

88.4

Erie

5,426

82.8

Fayette

2,358

85.9

Forest

97

87.4

Franklin

2,639

84.9

Fulton

260

91.5

Greene

577

78.9

Huntingdon

750

87.9

Indiana

1,697

85.6

Jefferson

1,031

89.0

Juniata

432

92.9

Lackawanna

4,476

82.7

Lancaster

10,161

84.8

Lawrence

1,703

85.0

Lebanon

2,241

85.0

Lehigh

6,555

77.3

Luzerne

6,058

82.1

Lycoming

2,325

82.9

McKean

924

85.9

Mercer

2,242

80.2

Mifflin

787

84.2

Monroe

2,962

84.7

Montgomery

21,223

81.8

Montour

301

71.3

Northampton

5,280

84.2

Northumberland

1,454

86.9

Perry

752

94.4

Philadelphia

21,367

79.8

Pike

848

92.5

Potter

320

86.3

Schuylkill

2,439

84.3

Snyder

655

78.1

Somerset

1,547

88.9

Sullivan

151

91.5

Susquehanna

842

95.4

Tioga

699

82.1

Union

772

86.0

Venango

1,000

84.3

Warren

779

85.4

Washington

4,196

84.1

Wayne

1,263

92.0

Westmoreland

7,722

86.2

Wyoming

552

89.8

York

7,015

81.1

County Not Specified

19

8.1

Note: An establishment is defined as a single physical location where business is conducted or where services or industrial operations are performed. Establishment sizes are based on the employment size of the firm in all industries and locations.

Source: JEC Democratic Staff based on data from the U.S. Department of Commerce, Census Bureau.

Press Contact

April Mellody 202-228-6367