Obama Wants Small-Business Bill This Year

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Obama wants small-business bill this yearWASHINGTON (AP) - Seeking cooperation in a polarized climate, President Barack Obama called on Congress Tuesday to act quickly on bipartisan measures that would extend tax breaks for small businesses and help startup companies raise money. He said he would sign the legislation "right away."

Obama plans to include a series of business measures that have been percolating in Congress in his 2013 budget proposal later this month to flesh out a year-old initiative to give entrepreneurs incentives to expand their businesses or start new ones.

Obama made his remarks during a Cabinet meeting at the White House. He noted that for the first time, the head of the Small Business Administration, Karen Mills, was participating as a full member of the Cabinet.

"It is a symbol of how important it is for us to spur entrepreneurship, to help startups, to move aggressively so that we can assure more companies that create the most jobs in our economy are getting a leg up from various programs that we have in our government," Obama said.

The White House legislative agenda for small businesses includes permanently eliminating tax rates on capital gains for investments in small businesses and a one-year extension on the ability of all businesses to immediately deduct all of the costs of equipment and software purchases.

The Obama administration also is seeking a new 10 percent tax credit for small businesses that add jobs or increase wages in 2012. In addition, the legislation would make it easier for new startup companies to raise money and to go public. It also would expand a government small business investment program from $3 billion to $4 billion.

"The president has made small businesses and particularly startups a key aspect of his economic growth agenda because he understands how much the newest and fastest-growing small businesses drive job growth in our economy," said Gene Sperling, director of the White House National Economic Council.

Obama said the Department of Homeland Security also is seeking ways to change the visa process to attract foreign-born entrepreneurs and high-skilled immigrants to invest in the United States or start new businesses.

The measures are modest by comparison to Obama's 2009 economic stimulus or to last year's jobs bill. But they borrow from past Obama initiatives and from bipartisan legislation that has either already passed in the House or is being proposed in the Senate.

Obama's package includes proposals offered in the Senate by Democrat Chris Coons of Delaware and Republican Marco Rubio of Florida, and another plan by Republican Jerry Moran of Kansas and Democrat Mark Warner of Virginia.

White House officials would not disclose the total cost of the president's package, but Sperling said it would be more than covered by proposals to reduce tax expenditures and by closed loopholes the administration will call for in its 2013 budget.

With the presidential election set to become the main political preoccupation of 2012, the White House initiative is designed to take advantage of cooperative attempts by Republicans and Democrats to find modest remedies to spur the economy. Most of those efforts have been overshadowed by congressional bickering, the Republican presidential primary and Obama's growing attention to his re-election.

The proposals come a year after the administration launched a consolidated effort to spur new startup businesses with a high-profile White House event featuring scores of entrepreneurs, some of whom offered testimonials to the job creation possibilities that new businesses can bring to the economy.

Besides the tax breaks, a central element of the Obama package is to assist new entrepreneurs by making it easier for them to raise money, reducing taxes on their startup expenses and removing securities barriers for new companies that have gone public.

"Our small business agenda has a specific focus on removing the barriers that have for too long blocked startups and entrepreneurs from getting the financing they need to accelerate their growth and hiring," Sperling said.

One of the Obama provisions would increase the amount of money that can be raised through small public offerings that don't require companies to undergo an extensive Securities and Exchange Commission registration process. The limit for such "mini public offerings" would increase from $5 million a year to $50 million. The House passed similar legislation last year.

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janswizz

The correction should read; Obama wants small businesses to disappear.

February 01 2012 at 2:12 PM Report abuse rate up rate down Reply
janswizz

Yeah hell, look how great the 862 billion worked on the shovel ready PROJECT ! " Hey Timmy get Hu Jintao on the horn, we need more cash, we still have more room for debt,right?"

February 01 2012 at 12:31 PM Report abuse rate up rate down Reply
maa2626

I would prefer mr obama to not use his "laser like focus" on small business. the laser like focus has not worked for unemployment.

February 01 2012 at 9:54 AM Report abuse +1 rate up rate down Reply
marine1942

Wonderful !! More government control.
The QE 1 and QE 2 did so well. Well for the bankers and Wall Street. Do you think Obama got any compaign money from that move ?

February 01 2012 at 9:28 AM Report abuse +2 rate up rate down Reply
ltobleck

Why is it the the demos only consider tax cuts GOOD when in or during an election year? the gov of Illinois is talking tax cuts to select few, after the largest tax hike in the states history, 67%, The President bho, a typicial demo ,cut taxes to placate the few ,till election day and then Raise them after the election, because tav cuts are Bad and hurt the "poor", the demo's voting block. Lets tax the 48% who pay no taxes and get Buffett to pay his taxes, THAT he OWES and is fighting the IRS about, something like 1 Billion dollars, while claiming that he supports taxing the rich. I still have not found any of the 48% who pay no taxes that have created jobs

February 01 2012 at 9:16 AM Report abuse +1 rate up rate down Reply
vondeck

Obama will say anything for a vote. He had 3 yrs to deal with this problem!!

January 31 2012 at 7:13 PM Report abuse +2 rate up rate down Reply
rich

The conservatives have been looking in this area for 3 years, why is our leader finally recognizing it. Simple, he can no longer even dream of passing any more socialistic programs so let's try common sense. If this president would have applied common sense 3 years ago we would be well on our way to recovery. A lost presidency for the American people.

January 31 2012 at 6:37 PM Report abuse +2 rate up rate down Reply
evanscheeselog

YEAH RIGHT ! You gullible people actually believe this Shovel Ready Douche Nozzle ?

January 31 2012 at 4:14 PM Report abuse +2 rate up rate down Reply
kngathr

Small Business Administration (SBA)-

This is probably one of the least utilized and talked about programs during economic downturns. WHY! That wasn’t a question, it was a total “I don’t get that” moment.
The SBA (should be called the NEW Business Administration) is charged with helping new business development. With basically 80% of the jobs in America accounted for by small businesses, the value of the SBA is paramount to our success down than road and absolutely one of the critical steps toward solving our economic problems- job creation will start and end at this level. The SBA continues to develop future new businesses, mentor and support individuals with the economic spirit and resolve to start a new business, and see it gets funded and founded- even at a time when its economic resources have not been sufficiently expanded.

Idea- Remember the idea about repatriating profits from overseas? Remember the 100 Billion dollar injection to the SBA? My idea is to shove that liquidity away from random spending on other issues or pet projects and put it right in the hands of people dealing with Americans in need of startup capital. Think about it as the loan the banks can’t or won’t give. Think of it as the push that ideas need to become entities, before they can qualify for large venture capital (and all the associated strings that come with VC). Think about it as a way to renew hope in the dream of American capitalism.

Side note- With 100 Billion of new money injected, it would create 500,000 new businesses (assuming a startup loan of $200,000 on average). That would immediately employ 500,000 people as owners and assuming history repeats itself- they would employ approximately 4 additional people per business (historical average). The net gain for this 100 Billion of New Business injection would result in approximately 2.5 million new jobs in America.

New businesses get people off unemployment. New businesses hire about 4 people over the first couple years on average. New businesses buy things from existing businesses. New businesses pay taxes. New businesses are the engine of our economy.

New businesses become the ultimate solution for the ultimate problem- JOBS in America.

More ideas at FixTheNation.com

January 31 2012 at 1:12 PM Report abuse -1 rate up rate down Reply
1 reply to kngathr's comment
evanscheeselog

Barry want's to bury the private sector, George Soros' orders. ...................Get it?

January 31 2012 at 4:21 PM Report abuse +2 rate up rate down Reply