SMALL BUSINESSES: Fact Sheet - 7/29/92 July 29, 1992 PRESIDENT BUSH: HELPING SMALL BUSINESSES TO GROW AND CREATE JOBS o As a former businessman and entrepreneur, George Bush understands the difficulties faced by small business owners, especially in raising capital and investing in growth. Accordingly, the President has tailored his economic policies to cut burdensome federal mandates, and to help small businesses get better access to capital. o The President's economic growth plan includes major new incentives for small businesses to invest in productivity -- a capital gains tax cut and a new investment tax allowance. The President's $5,000 tax credit for first-time homebuyers' will also spur new demand in the housing sector, generating 272,500 new jobs and $12.5 billion worth of residential construction. Had the President's growth plan been passed by the Democratic Congress, it would have created 500,000 jobs this year. o One thing the President will not do is to impose new payroll or income taxes on small businesses. Not only has Bill Clinton promised to raise those taxes -- a staggering $150 billion -- but he has guaranteed at least $220 billion in new spending, not counting the cost of his play-or-pay plan. o Clinton says his massive tax and spend program is an "investment." It will hardly seem that way to the 800,000 small business owners who will have to pay his higher taxes and the 2.5 million Americans who will lose their jobs -- one million in defense-related industries alone. o The President will continue to fight Democratic special interests intent on new federal mandates. Four times the President has wielded his veto pen to stop job-costing mandates. Clinton, however, is ready to turn back the clock on job creation, imposing new mandates that would make small businesses think twice about hiring anyone. Clinton mandates could make per worker health care costs soar by two-thirds. o Simply stated over 800,000 small businesses, the backbone of the American workforce, will suffer under a Clinton presidency. Millions of hard-working Americans and their families who want higher growth and new jobs will get only more hardship and a higher tax bill, courtesy of Clinton.