Thompson Joins Alabama Rep. Bobby Bright in Introducing Small Business Start-up Savings Accounts Act of 2009

Dec 17, 2009

Washington, D.C.—U.S. Representative Glenn `GT’ Thompson, R-Howard, today said he was happy to join his Small Business Committee colleague Rep. Bobby Bright, D-AL, in introducing a bipartisan bill to assist small businesses.

The measure, H.R. 4309, the Small Business Start-up Savings Accounts Act of 2009, would amend the tax code to allow individuals to place up to $10,000 in pre-tax income into an account annually, to be later used for small business start-up expenses. The amount in the account could not exceed $150,000 and an individual’s income could not exceed $150,000 per year in order for them to participate.  The individual, in time, could withdraw the money with no penalty, if the purpose was for creating a small business.  Otherwise, if the individual does not start up a small business venture, the amount is subject to the capital gains tax rate.

 “Anything that will provide an incentive for small business start-up and the job creation that follows is a good thing,” said Thompson.  “I believe these accounts can be the starting point for an individual to pursue his or her entrepreneurial dreams. This is a type of smart-government economic stimulus that doesn’t add to the deficit and continues to foster the forward thinking that has made America so great. This is a real win-win scenario for everyone,” added Thompson.

“Small businesses create anywhere from 60-80% of American jobs, yet there is not currently a method for these entrepreneurs to effectively save the money to create their own company,”  Bright said.  “The bill will help Americans save up to create their dream business and in turn, add jobs to our workforce.  This is a smart and innovative way to create jobs while giving entrepreneurs peace of mind that they won’t have to dip into traditional savings or retirement accounts to finance start-up costs.  I would like to thank my friend and colleague Congressman Thompson for introducing this legislation with me, as well as Senator Pryor for his work in the Senate.”