Last week, the Senate killed three measures that were aimed at helping small businesses. They included:
- A $46 billion measure that would have granted businesses with fewer than 500 employees a one-year 20 percent tax break. By some estimates this would have created just under 200,000 jobs.
- A $4 billion measure that would have encouraged more start-ups
- A provision to give businesses a 10 percent tax break worth up to $500,000 for any new payroll added this year. It also would have extended a 100 percent bonus depreciation, allowing companies to write off investments in expansions and new equipment. Estimates cited this would create nearly 1 million jobs.
The amazing part is the bill wasn’t killed because it didn’t have smart solutions – in fact it had already passed the Republican controlled House of Representatives – it was voted down because as part of the bill, Congress couldn’t figure out a way to extend or expire the now famous “Bush era tax cuts.” At issue is the threshold for those tax cuts. Democrats want them extended for everyone making less than $250,000, while Republicans want them extended for everyone. And in the middle are small business owners that may or may not be affected. Depending on who you believe, taxing those making over $250,000 will be a death knell for
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