President Obama is urging Congress to move fast to pass new tax breaks and lending incentives that would open up lines of credit for small businesses.
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Opinions vary about efforts to make it easier to get an SBA-backed loan, but certain entrepreneurs should still apply, says Tom Taulli.
The Business Mole
Article By: Tom Taulli
Small Biz
http://www.bizequity.com/
Small-business groups had rallied for an economic-stimulus plan packed with generous new tax breaks and other relief measures making it easier for businesses to grow and hire employees in this tough economy. Well, they aren’t too pleased with the outcome.
“There’s not a lot in the stimulus plan that will put cash in the hands of people who will deliver it to the front door in the form of sales,” William Dunkelberg, chief economist with the National Federation of Independent Business, told the AP. Rather, he and others said the compromise plan finalized yesterday seems to focus on padding consumers’ pockets, with the assumption that the money will eventually trickle down to businesses.
NFIB and other small-business advocacy groups had pushed for measures such as a six-month payroll tax holiday, doubling the tax deduction for start-up companies to $10,000 from the current $5,000, and exempting an entrepreneur’s first $30,000 in net earnings from tax. While it’s still unclear what will be in the final compromise, it seems the business-focused measures were limited to ones that many business owners felt were less-than-adequate, including extending loss carrybacks to five years (now limited to just small businesses) and and continuing an expansion of Section 179 deductions to $250,000 on purchases of equipment such as computers, furniture, machinery and vehicles.
What’s more, some groups fear the compromise stacks extra, new burdens onto entrepreneurs that will make life harder than before. The Small Business and Entrepreneurship Council yesterday sent out a last-minute plea to strip the bill of the “Buy American” provision that will force the government to purchase all material goods used for public-works projects – claiming the international backlash created by such a measure will hurt small exporters. That provision was softened in the final compromise to say that the U.S. must comply with World Trade Organization rules, but critics still think it will have negative repercussions. The group also asked Congress to remove new rules that would force businesses to extend health insurance to laid-off workers with 10 years of service, and to get rid of verification and wage rules it says will make it difficult for small businesses to vie for government contracts.
WASHINGTON - The Federal Reserve has slashed a key interest rate by half a percentage point as it seeks to revive an economy hit by a long list of maladies stemming from the most severe financial crisis in decades.
The central bank on Wednesday reduced its target for the federal funds rate, the interest banks charge on overnight loans, to 1 percent, a low last seen in 2003-2004. The funds rate has not been lower since 1958, when Dwight Eisenhower was president.
To: The Small Business Mole
Thank you for contacting me regarding the Emergency Economic Stimulus Act of 2008 (EESA). I appreciate hearing from you on this important issue. It is one of the most important issues facing this country right now.
To: The Small Business Mole
Thank you for contacting me about H.R. 1424, the Emergency Economic Stabilization Act of 2008. I appreciate hearing from you about this important issue. The U.S. Senate voted to pass this bill by a margin of 74-25 on Wednesday, October 1, 2008. H.R. 1424 is now being considered by the U.S. House of Representatives.
The financial markets are slowly and surely collapsing. I don’t know all the causes and I’m not sure anybody else does either. The bottom line is that if our congress does not take action very soon we may face a financial and credit melt down of unimaginable levels. The strange thing for me, as a small business owner, is that our political leaders are only worried about the high cost of trying get back on track and not keeping their eye on the real ball, and that includes both Democrats and Republicans. If our major financial institutions fail it will ripple all the way down to the smallest business and individual. Worrying about our mortgage or credit opportunities may be the least of our problems. After hearing comments from some members of congress today even stock market investors don’t see congress as having enough leadership to get past the debate and get something out now that works. It feels like just another, here we go again, political debate that resolves little. If any developed financial plan needs tweaking, as we move through this crisis, then make sure to set up the conditions of the plan that way.
by NFIB President Todd Stottlemyer
When Sen. John McCain delivered the keynote address at our 2008 National Small Business Summit, he did much more than speak to the several hundred interested small business owners who attended. He brought the concerns of our voting bloc to the forefront of the presidential campaigns. In fact, both Sens. McCain and Barack Obama have spent time on the campaign trail specifically addressing the No. 1 issue among small businesses—healthcare. And it’s about time.
Recognizing that healthcare costs have become unmanageable for many small business owners and entrepreneurs, Sen. McCain remarked that, if elected, his administration would introduce healthcare reform that would provide hardworking Americans, like those working in small businesses, more options and expand portability of coverage.
By: Small Business Mole
Good News: The IRS increases the deduction for mileage rates eff: July 1st, 2008
Given the price of gas this increase is coming at a great time. Hopefully this will assist in reducing the pain at the pump through the rest of this year.
Notification IR-2008-82, June 23, 2008
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Nydia M. Velázquez, Chairwoman
For Immediate Release
June 12, 2008
Committee Reviews Potential Effects of Proposed Electronic Payments Tax Reporting
WASHINGTON, D.C.- In a hearing held today, expert witnesses and the Committee on Small Business explored the effects of a new tax reporting proposal. The measure would require small companies to file tax reports on all credit card receipts and, while developed with the best intentions, would threaten both the privacy and livelihoods of countless entrepreneurs.
