leveraging the federal tax code to promote self-employment and state and local job creation bill...
TRANSCRIPT
LEVERAGING THE FEDERAL TAX CODE TO PROMOTE
SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION
Bill Schweke, Senior Fellow, CFEDBig Ideas on Job Creation Conference
June 16-17, 2011
www.cfed.org202.408.9788
Purpose
Use the federal tax code to deliver essential business development and financial services to low-income and other startup entrepreneurs, with the aims of simultaneously creating more new jobs and improving service delivery.
www.cfed.org202.408.9788
US Economic Situation
Massive job losses Weak recovery Deep political and policy divisions
www.cfed.org202.408.9788
Policy Parameters
Bi-partisan appeal Private sector involvement Help small business if possible Not too capital intensive Not too complex administratively Quick results Leverage financial and in-kind resources Scalable Minimize government costs Rely on state and local implementation
www.cfed.org202.408.9788
Key Features of Our Approach
Focus on self-employed (especially startups and first time tax filers)
Target tax time and existing tax prep infrastructure
Use Schedule C and EITC Minimize direct spending/maximize off-budget Encourage tax compliance Develop referral system Help exit informal economy Improve capital base, “draw,” and management
skills and understanding
www.cfed.org202.408.9788
Self-Employment: Its Importance
Size and diversity Political Entrepreneurship: opportunity and barriers Small business and microenterprise support
system and programs VITA and other sites
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Some Criticisms and Concerns
Is it high road? Objections Counter-arguments
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Tax Barriers to Self-Employment
Schedule C Numbers Tax liabilities Fairness Need for TA How to scale up services
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Self Employment Tax Initiative (SETI) Goals Partners How SETI works Models Findings Lessons
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Reforms
State Federal
