LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill...
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Transcript of LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill...
![Page 1: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/1.jpg)
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
![Page 2: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/2.jpg)
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.
![Page 3: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/3.jpg)
www.cfed.org202.408.9788
US Economic Situation
Massive job losses Weak recovery Deep political and policy divisions
![Page 4: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/4.jpg)
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
![Page 5: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/5.jpg)
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
![Page 6: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/6.jpg)
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
![Page 7: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/7.jpg)
www.cfed.org202.408.9788
Some Criticisms and Concerns
Is it high road? Objections Counter-arguments
![Page 8: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/8.jpg)
www.cfed.org202.408.9788
Tax Barriers to Self-Employment
Schedule C Numbers Tax liabilities Fairness Need for TA How to scale up services
![Page 9: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/9.jpg)
www.cfed.org202.408.9788
Self Employment Tax Initiative (SETI) Goals Partners How SETI works Models Findings Lessons
![Page 10: LEVERAGING THE FEDERAL TAX CODE TO PROMOTE SELF-EMPLOYMENT AND STATE AND LOCAL JOB CREATION Bill Schweke, Senior Fellow, CFED Big Ideas on Job Creation.](https://reader036.fdocuments.us/reader036/viewer/2022062423/56649e9d5503460f94b9ef2d/html5/thumbnails/10.jpg)
www.cfed.org202.408.9788
Reforms
State Federal