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To Qualify For New Small Loans Are Small Businesses
With an estimated cost of $ 7 billion over the last 10 years, Congress has passed a package of small business stimulus measures. This should increase tax cuts, spur lending, and provide new equity financing. This bill is in response to the increasing costs of starting a business, and could be overseen by all of the Treasury’s inspector general.
Article Resource: Small Businesses to qualify for new small loans
The Small business bill helps cut taxes
The small business bill is a combined bill that closes all of the tax loopholes and renews the tax cuts for small businesses. There would be $ 3.6 billion in tax breaks for small businesses to be implemented in the next 10 years. The tax breaks will be paid for by increases in tax for large businesses. Small businesses would also be able to deduct startup expenses from their taxes. This provision of the bill began as a separate measure in Congress, but is being combined as it is sent to the Senate.
Additional money to flow to small businesses
The small business lending bill will likely create 3 major avenues for small businesses to get money. First, there would be a $ 30 billion fund of “preferred stock” that banks would be allowed to tap depending on their lending to farms and small businesses. There would also be $ 2 billion given to states to help increase state-funded loans to many different small businesses. Third, the Small Business Administration would be authorized to match $ 1 billion of private investment in a whole bunch of startups.
Paying for the small business bill
In order to pay for the estimated $ 7 billion cost of the small business loans bill, the government will be increasing some taxes. Specifically, tax breaks for Grantor-Retained Annuity Trusts could be rescinded. Additionally, taxes on the sale of some stock would be increased to the point of standard income taxes as opposed to capital gains taxes.
Vote on the small business bill
On a 241-182 vote, the small business bill passed. The bill is now being combined with the $ 3.6 billion tax-cut bill that is for small businesses and will go to the Senate. The Senate is expected to pass the bill. Some Senate Republicans are arguing that this bill is really “another bank bailout” masquerading as a small business stimulus package. Democrats counter the bill takes a balanced approach to traditional and non-traditional lending for all of the new businesses.
Is Closing Tax Loopholes Enough To Trim The Deficit?
State Income Tax Loopholes
