Coalition for Crowdfunding American Jobs and Prosperity

Coalition for Crowdfunding American Jobs and Prosperity (CCAJP)

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.

JOIN THE COALITION

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