Print Page   |   Your Cart   |   Sign In
News & Press: Arizona Business News Updates

Obama Seeks to Extend, Expand Small-Business Tax Breaks

Wednesday, February 1, 2012   (0 Comments)
Posted by: Rhette Baughman
Share |
By Roger Runningen

(Updates with comment from SBA’s Mills, McConnell spokesman in seventh-10th paragraphs.)

Jan. 31 (Bloomberg) -- President Barack Obama sent Congress a package of small business measures today that he said would expand tax relief and unlock capital to boost the economy and create jobs.

The plan would expand and make permanent a zero capital gains rate on small business investments; enact a new, 10 percent tax credit for hiring or increasing wages; double to $10,000 from $5,000 the deductions a startup business could take and extend 100 percent first-year depreciation, for one year, for qualified property placed in service before Jan. 1, 2013.

Obama said he wants "to spur entrepreneurship, to help startups.” At the start of a Cabinet meeting at the White House, he called on Congress to quickly act on legislation and said he would "sign it right away.”

Over the past week, the president has been fleshing out proposals he advanced in his State of the Union address. Tomorrow, he’s scheduled to give remarks about the economy and talk about proposals to revive the nation’s housing market.

In the election-year tension between the White House and Congress, tax benefits for small business may be an area where Democrats and Republican are to bridge differences.

Raising Money

Karen Mills, head of the Small Business Administration, said the agenda includes steps to make it easier for startup companies to raise money and to go public. She said it includes an expansion of a government small business investment program to an authorized level of $4 billion a year from $3 billion.

"We can target this to places that have been hard hit by the economy,” Mills said in a conference call with reporters.

Don Stewart, a spokesman for Senate Republican Leader Mitch McConnell, said in a statement that while initiatives on funding and becoming a public company have bipartisan support they haven’t been scheduled for action in the Democratic-controlled chamber.

This isn’t about "a contest, or who can claim credit, but whether we can demonstrate an ability to come together” to help create jobs and accelerate hiring, Gene Sperling, director of the National Economic Council at the White House, said on a conference call.

Details of the proposals will be included in the fiscal 2013 budget Obama submits to Congress Feb. 13.

The package builds on Obama’s Startup America, which was announced by the White House a year ago to foster entrepreneurship to create jobs.

A Small Business Jobs Act that Obama signed in September 2010 included eight tax cuts providing more than $12 billion in tax breaks for small businesses.

--With assistance from Margaret Talev in Washington. Editors: Joe Sobczyk, Bob Drummond

To contact the reporter on this story: Roger Runningen in Washington at

To contact the editor responsible for this story: Steven Komarow at


Don’t offer a 401K? No problem.


Introducing Guaranteed Retirement Income from NationwideSM
This new way to save for retirement gives your employees guaranteed retirement income every month for life, for as little as $10 a month.


Save up to 25% off regular rates.

Constant Contact

Save up to 25% off regular rates as an ASBA member. No obligation 60 day trial with one-on-one coaching and support to help get you started!


Think BIG, with UPS.


Whether your business is high tech or handmade, our expert-designed products and services can make your small business run more efficiently. Our solutions were created with the specific needs of small businesses in mind.



Experience ASBA


Date: Held monthly
Time: Click for times based on location
Location: Phoenix or Tucson


ASBA Speed Networking


Date: Held monthly
Time: Click for times based on location
Location: Phoenix or Tucson

Affordable Dental Plans for ASBA Members

Delta Dental

Your smile deserves Delta Dental, the nation’s leading dental benefits provider. With the largest network of dentists, personalized service & special pricing for ASBA members, we make it easy to keep your smile healthy.


Have questions on small business and health insurance?

Health Insurance

Get the latest on individual, sole proprietor, or group plans related to small business. We can help you find the right plan for you, and your employees. Click to learn more!


Small is the New Black


What's trending for 2017? Small Business! This year, resolve to support our local economy by "Thinking Small" at least one time each week! Need help finding a small biz? Visit! #ThinkSmallBiz


Association Management Software Powered by YourMembership  ::  Legal