For months/years, Congress has been happy to sit back and take a “wait and see” position on the economy as it relates to small businesses. But now they care. They really, really care.
*** Oh wait, I’m just getting this in… This flurry of activity is just meant to make them look like they care weeks before the November election. Ah.
No matter what you choose to believe about the “why” of Congress’ newfound enthusiasm for debating legislation, they’re back in the swing of things. It’s just Wednesday and Democrats in the Senate have already beat back a filibuster attempt to stall a vote on tax breaks for small businesses. The measure eventually went to a vote, passing 61-37. A simple majority is needed for final approval.
The primary opponent to the bill was Senator Scott Brown (R-MA) who called the bill another bailout. That sentiment wasn’t shared by all of the GOP, however. Senator George Voinovich (R-OH) encouraged his party to move forward instead of blocking the bill; he had pledged to support it last week. He was joined by Senator George LeMieux (R-FL).
What gave Voinovich and LeMieux the gumption to split so publicly with the party? Perhaps they’re acting in the best interests of their constituencies. LeMieux has said about the bill, “It’s the right thing to do. It’s going to be very good for my state. We have got almost two million small businesses. They are struggling.”
Or it could be more cynical. It hasn’t gone unnoticed that both men are retiring from the Senate after their terms.
Despite the reasons for the posturing, it appears that the measure will become law. Under the terms as written, a fund would be made available to community banks with fewer than $10 billion in assets to encourage lending to small businesses. The bill allow offers about $12 billion in tax cuts for smaller businesses, including the elimination of capital gains for investments in small businesses and accelerated depreciation for certain businesses making capital improvements. Proponents of the bill say that the combination will get the economy moving again.
I’m not against business tax breaks in general, but until people get jobs and more money to spend, there’s not going to be a whole lot of expansion at the corporate level.
Trickle down stimulus is a poor way to do it.
Well, fiscally, I am 50/50 on this news.
Politically, this was a great tactic. Present a bill that the Republicans would probably have presented and let the voters see if they are stalling things or not. But then you have to deal with your own party the next morning.
Great website and great comments, now i also want to share my views over this topics—
TAX is source of in come for a GOVERNMENT in any country.
It’s our duty to give PROPER TAX to GOVERNMENT every year.
SO be a good citizen and do your duty.