White House: Tax Cuts Support Hispanic-Owned Firms

WASHINGTON April 23, 2004 (Hispanic PR Wire) - The White House economic growth plan, which includes a number of tax cuts, would be beneficial to Hispanic-owned businesses -- particularly small firms -- President Bush told a gathering of correspondents for business publications, including Hispanic Business magazine.

"When you drop the individual tax rate, you affect the small-business owner dramatically, because the small-business owner generally is not incorporated and pays the individual income tax. It should be called the Small Business Tax Cut. One of the wonderful success stories of America is the fact that there are millions of Hispanic-owned businesses now, and the individual rate cut represents capital into their coffers," President Bush said during the April 22 meeting at the White House.

Congressional Democrats have criticized the fiscal year 2004 presidential budget request for being light on funding for programs -- such as the 7(a) and 8(a) -- and departments -- such as the Minority Business Development Agency -- which have traditionally benefited Hispanic-owned small businesses.

The president said the criticism is misguided.

"If they want to help small businesses, cut the taxes for small businesses and recognize that most small-business owners are sole proprietors and limited partnerships, and they pay the individual tax rate and that's not fair. Instead of [the Democrats] talking about more government programs, why don't they trust the people with their own money? Instead of spending that money, just let them keep it in the first place. It's the most effective way to create capital in the small-business sector. The number of Hispanic-owned businesses represent phenomenal growth, and the best way to encourage and enhance that growth is through capital formation inside the companies themselves."

President Bush was to meet with his Uruguayan counterpart, Jorge Batlle, at the White House to discuss trade issues, including a proposal to establish a bilateral trade agreement between the two countries.