The Wall Street Journal Online is reporting this morning that a Bill to Aid Small Businesses has Advanced in the US Senate.
NAFTALI BENDAVID writes:
“The Senate sprinted ahead Tuesday with a bill Democrats say will help small businesses, including a controversial $30 billion fund designed to encourage community banks to lend to small firms…Aides expect the Senate bill to pass later this week, be reconciled with a House version and then signed by President Barack Obama, possibly by next week.”
Democrats believe the bill will create thousands of jobs. Republicans say the lending fund is another unwarranted government incursion into the free market.
A related bill, a provision in the health-care overhaul that requires businesses to file a 1099 tax form when they pay a vendor more than $600 in a year, is a source of anger and protest from small businesses and their representatives in Washington. Sen. Mike Johanns (R., Neb.) offered an amendment to rescind the requirement, a move that would cost the Treasury $17 billion in tax revenue. Johanns proposed cutting a health-care prevention fund and reducing penalties for those who don’t buy insurance, which would result in fewer people buying insurance and getting federal subsidies as a way to make up the difference. His amendment has failed, although there is still a drive to change this reporting requirement.
A simple majority of 51 votes is required to pass the current bill. Some of the provisions of it are:
- $12 billion in small-business tax breaks
- 100% exclusion from capital gains taxes for those who invest in small business
- A provision whereby firms can immediately write off 50% of the cost of new equipment
- Doubling of the tax deduction for start-up expenses to $100,000.
You can view WSJ’s entire article here.
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