The House leads the way with the JOBS act.

Setting their differences aside both sides of the House of Representatives voted to ease the way for small businesses to raise capital and eventually hire workers. The JOBS or Jumpstart Our Business Startups ACT was voted upon on Thursday and it is felt that at this time in the run up to the presidential elections the Republicans cannot afford to look like the party that has been holding the House to ransom and not allowing the passage of any bills.

The passage of this bill is in contrast to way that the Republicans have in the past obstructed much larger job creation measures, and as it is as yet unclear how large an impact the JOBS Act will have on job creation, Democratic leader Nancy Pelosi was dismissive about the larger economic impact of this bill saying that she feels a much larger jobs bill is the need of the day.

This House bill proposes a relaxation of certain Securities and Exchange Commission requirements like the filing requirements associated with initial public offerings, and soliciting private investors ; making it easier for small firms and start ups to raise capital and hopefully eventually grow enough to hire people. This bill will not go to the Senate where it is expected that the Democrats will present a similar package as early as next week, with the addition of some job creation proposals that are a part of President Obama’s Startup America initiative.

Small businesses or businesses which employ fewer than 500 employees are where half of all of America’s private sector employees work. And these businesses have said that they feel handicapped by government red tape. The JOBS act is designed to make it easy for these businesses to flourish, but will cost the government about $50Million which the SEC hopes to offset from the fees that it collects from the firms that it regulates. The NYSE, Euronext and the Chamber of Commerce, American’s largest business lobbying group have welcomed this bill and are urging the Senate of approve it as well.

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