Background

The passage of the bipartisan JOBS Act ushered in Regulation Crowdfunding (Reg CF) and since May of 2016, over 8,500 companies or investment campaigns have raised over $2.2B in capital from more than 2 million ordinary Americans – typically in amounts averaging $1,400 per investment. Only US companies can raise funds using Regulation Crowdfunding and these companies demonstrate remarkable resilience and durability, with failure rates below 10% - far lower than the 75% failure rate of VC-backed startups and the 50% failure rate for small businesses (as reported by BLS over a five-year period). Over $7.5B in economic activity has been generated which has created or supported over 400,000 jobs. Successfully funded companies across all 50 states and from over 620 industries now represent a market valuation of nearly $80B.

The Proposal 

It’s now time to unleash Reg CF as an engine for US economic growth. Our coalition supports amendment of the Internal Revenue Code of 1986 to allow a 50% credit against income tax, up to $1,000 annually, for investments made pursuant to Regulation Crowdfunding. This Act shall be called the "Targeting Resources to Unleash Market Prosperity (TRUMP) Jobs Act." 

Benefits to the Economy: Massive Economic Growth

This policy would create or sustain over 1 million new jobs, economic growth of $120 billion, and nearly 30,000 American businesses each year. 

Benefit to the Treasury: Net Fiscal Surplus

This policy is self financing. With dynamic scoring and an expected multiplier effect of 6x, the result is a budgetary net gain to the US Treasury of $8B per year or $80B over 10 years. This surplus can help offset other budgetary needs.

URGE CONGRESS TO ACT NOW AND PASS THE NON-PARTISAN TRUMP JOBS ACT

JOIN THE COALITION FOR THE TRUMP JOBS ACT