The House of Representatives approved the Small Business Jobs Act today by a vote of 237 to 187. Iowans Bruce Braley, Dave Loebsack and Leonard Boswell joined most House Democrats in supporting the bill; Tom Latham and Steve King joined all but one House Republican in voting no. CNN summarized the bill’s main provisions:
The Small Business Jobs Act authorizes the creation of a $30 billion fund run by the Treasury Department that would deliver ultra-cheap capital to banks with less than $10 billion in assets.
The idea is that community banks do the lion’s share of lending to small businesses, and pumping capital into them will get money in the hands of Main Street businesses.
Another provision aims to increase the flow of capital by providing $1.5 billion in grants to state lending programs that in turn support loans to small businesses. The state programs have proven themselves to be efficient, targeted and effective, but with many states struggling to balance their budgets, the programs are going broke.
The bill would also provide a slew of tax breaks that will cost $12 billion over a decade, according to a preliminary estimate from the Joint Committee on Taxation. The breaks aim to encourage small businesses to purchase new equipment, to incentivize venture capital firms to invest in small businesses, and to motivate entrepreneurs to start their own business.
When the Senate approved the same bill on a mostly party-line vote, Democrat Tom Harkin voted for it, while Republican Chuck Grassley voted against. Several House Republicans today characterized the lending fund as another “bailout”; Grassley used the same talking point last week. Republicans have supported similar small business tax breaks in the past, and the House Republicans’ new “Pledge to America” mentions small business many times.
In other news from Congress, a motion to start debate on new campaign finance regulations fell one vote short in the Senate. All 59 senators who caucus with Democrats voted for the DISCLOSE Act, but 60 votes are needed to pass a cloture motion. Grassley was among 39 Senate Republicans to voted against starting debate on this bill. Open Congress summarized the DISCLOSE Act as follows:
This is the Democrats’ response to the Supreme Courts’ recent Citizens United v. FEC ruling. It seeks to increase transparency of corporate and special-interest money in national political campaigns. It would require organizations involved in political campaigning to disclose the identity of the large donors, and to reveal their identities in any political ads they fund. It would also bar foreign corporations, government contractors and TARP recipients from making political expenditures. Notably, the bill would exempt all long-standing, non-profit organizations with more than 500,000 members from having to disclose their donor lists.
The DISCLOSE Act wouldn’t do nearly enough to reduce the influence of money in American politics, but it’s amazing to see Republicans united against even these modest disclosure rules and restrictions. Democratic Senate candidate Roxanne Conlin’s campaign sharply criticized Grassley’s vote:
“Senator Charles Grassley voted today to allow foreign interference in U.S. elections. This vote means that BP and other foreign companies, the Iranian government and other foreign governments, are free to spend any amount of money to affect the outcome of U.S. elections,” said Conlin spokesperson Paulee Lipsman.
“In voting against debate on the federal DISCLOSE ACT, meant to provide Iowans with information on who is funding campaign attack ads, Senator Grassley also sided with the Wall Street bankers, insurance companies, corporations and other special interests who have filled his campaign war chest. The Senator is protecting those who want to anonymously produce the ads filled with distortions and lies that are intended to influence voters.”
Grassley also voted against ending the filibuster on the DISCLOSE ACT on July 27.