On Tuesday, the Senate voted to advance a bill, pushed by President Obama, that ostensibly is designed to help small business. One key provision of the bill creates “Son of TARP”, a $30 billion fund to encourage small community banks to make loans to small business. Other provisions give small business $12 billion in tax breaks, and allow them to write off 50% of the cost of new equipment in the year that the equipment is purchased. That’s the “we love you” part.
Small businesses will need every penny of those loans and tax breaks to pay for the “we love you not” part. Read more
President Obama on Tuesday suggested a bold move – a complete elimination of the capital gains tax on small business investment for one year. Congress promptly suggested more than doubling the tax from 15 percent to 35 percent effectively classifying these gains as ordinary income.
Actually, Obama’s plan to increase taxes for those making $250,000 guarantees increased prices for not just the middle class, but everyone else too. Sure, the Mary Kay Cosmetics independent beauty consultant may not make more than $250k, but many small businesses do.
Let’s talk about those families – and small businesses – that make more than Obama’s arbitrary definition of “rich.”