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Small Business Reacts to New White House Jobs Proposal
Published on Jan 28, 2010
Check out 'Small Business Reacts to New White House Jobs Proposal' at 'Time to Start Up,' the small business blog by BizFilings.
"Good, fine—now do it yesterday." That sums up the reaction to President Obama's latest jobs proposal to spur growth among small businesses.
Under the plan, small businesses receive an extension of tax incentives authorized in the American Recovery and Reinvestment Act, or ARRA. The plan also extends the suspension of fees and the promise of larger guarantees for Small Business Administration loans—all good things for small businesses.
Announced on December 8, the plan is part of the Administration's strategy to create jobs, expand business investment, and create greater access to capital. And to hear the reactions of most small business CEOs, the plan itself isn't the problem—it's the pace of Congress in approving it.
In addition to other tax incentives, the President also proposed eliminating capital gains taxes on small-business investment for one year, suggested that unused TARP funds be redirected to small businesses, and proposed a short-term tax cut for small businesses that hire new workers in 2010.
Like all such proposals in turbulent economic times, the actual effect won't be known until…well, until it's known. And that won't happen until Congress enacts it. But the fact that the Administration is trying to provide aid to small businesses is a good sign, says Molly Brogan, a spokesperson for the National Small Business Association (NSBA). "The capital gains elimination and the extension of the bonus depreciation deduction will help get more cash in the pockets of Americans," she says.
But NSBA echoes the consensus that speed is crucial. "We are pleased to see President Obama paying close attention to small business and offering some sound proposals," says Todd McCracken, NSBA President and CEO. "But the time for talk has long-since passed. We need the administration and Congress to act now on these proposals—they simply can’t wait."