(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.
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
Get $5k-$20 in Free Marketing: Make 2016 Your Year for Success!
Use In Business Magazine as a tool to reach your customers for 2016. Through Print, Online, Social Media, Email & Events, you can realize an additional $5k to $20k in free advertising with In Business Magazine over 2016.
Allowing you to concentrate on what’s really important.
We understand the insurance needs of locally-owned businesses because we’re one, too. As an ASBA member backed by CNA, we’re dedicated to helping small businesses like yours safeguard all you've worked so hard to build.
What’s trending for 2016? 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 ThinkSmallBizAZ.com! #ThinkSmallBiz
There's no better time to join ASBA than now! Enjoy all the benefits of membership and catch your favorite summer movie release. Discover how ASBA can help you acquire new customers. Contact Robin Duncan for details.
You're important to us and we want to help protect you
and your family through the use of insurance products. As a valued association member, you have the opportunity to purchase an insurance policy with lower premiums and/or enhanced benefits not available to the general public. Click here to learn more.
CopperPoint Insurance is Arizona's premiere provider of workers compensation insurance. We've been providing coverage and advocating for Arizona businesses, small and large, throughout the state since 1925.