President Obama's proposals to accelerate job growth and lay the foundation for robust economic growth include tax cuts for small businesses to expand investment, hire workers and access credit.
On Dec. 8, President Obama laid out some of the broad steps he believes should be at the heart of the government's efforts to help put Americans back to work and get business hiring again, according to a White House news release.
? Zero capital gains for small businesses: To encourage investment by small businesses and improve their access to capital, the administration is calling for a one-year elimination of the tax on capital gains from new investments in small business stock. The Recovery Act allowed a 75 percent exclusion from capital gains taxes on small business investments.
? Extension of enhanced expensing provisions for small businesses: The administration is also calling for the extension through 2010 of the Recovery Act provision that allows small businesses to immediately expense up to $250,000 of qualified investment.
? Extension of Recovery Act bonus depreciation tax incentive: To give businesses an incentive to invest, the administration is calling for extending the Recovery Act provision that accelerates the rate at which business can deduct the cost of capital expenditures.
? A new tax cut for small businesses to encourage hiring in 2010.
? Eliminating fees and increasing guarantees for small businesses that borrow through major SBA programs in 2010: The President called for the elimination of fees and an increase in guarantees for loans through the Small Business Administration, a measure that extends provisions in the Recovery Act through the end of 2010. In addition, the President called for continued Treasury efforts to use the TARP to support small business lending.
For information, visit www.whitehouse.gov.