Politics & Government

Republican Co-Sponsors Rep. Eric Swalwell's Small Business Tax Break

New York Republican Chris Collins joins the East Bay Democrat's call to defer payroll taxes for small employers in economically-distressed areas.

Rep. Eric Swalwell moved his small business tax deferment bill a baby step closer to reality by signing on a co-sponsor from the majority Republican party in the House of Representatives.

Rep. Chris Collins (R-NY) will join Swalwell in seeking passage of H.R. 952, dubbed the Main Street Revival Act.

The act would allow businesses in certain economically depressed areas, that hire no more than 25 people in their first year, to defer payroll taxes for 12 months, and then remit these deferred taxes on an installment plan over the succeeding four years.

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A first term Democrat, Swalwell unseated former Rep. Pete Stark in an upset victory in November. He faces a likely challenge in 2014 from fellow Democrat Ellen Corbett of San Leandro who terms out of her state Senate seat.

Collins is also a first-term Congressman as well as millionaire businessman who represents an area around Buffalo that the Wall Street Journal calls "the most Republican district" in New York State.

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Swalwell's district includes parts or all of Castro Valley, San Lorenzo, Cherryland, Union City, Fremont, Hayward, Livermore, Danville, Pleasanton, Dublin and San Ramon. 

Swalwell's staff said 14 communities in the district have areas eligible for the payroll tax deferment should the act become law: there are two in Ashland, four in Cherryland, one in Union City, three in Hayward, one in Claremont, one in Continental Mobile Home Park, and two in Sorenson. 

These zones are identified by the Small Business Administration. They are called Historically Underutilized Business Zones. These HUB Zones are identified by census tract.

A PDF of the eligible census tracts in Swalwell's district is attached.

What do you think of the bill, and the fact that Swalwell has at least some bipartisan support?


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