Obama’s Small Business Conundrum
WASHINGTON — Way back in February, small business groups complained that they got short shrift from the economic stimulus bill. Nearly a year later, President Obama now seems to agree.
At the Brookings Institution Tuesday, the president made several overtures to small businesses. He wants to expand or extend some of the tax breaks offered in the stimulus bill, including a 100% exclusion from capital gains taxes next year. And the president proposed an “employment tax cut” to encourage small business hiring. He also wants to cut fees and increase government backing for Small Business Administration programs.
“It’s worth remembering that every once in a while a small business becomes a big business and changes the world,” the president said. “That’s why it is so important that we help small business struggling to open, or stay open, during these difficult times.
Small business groups are happy about the help, but at the same time they worry that a host of Obama’s signature policies could more than offset them.
Take health care reform. The National Federation of Independent Business and the National Small Business Administration both oppose the House of Representatives’ version of reform, which includes an employer mandate for coverage. It would also levy a surtax on individuals who make more than $500,000 annually ($1 million for couples) to help pay for the bill.
Popularity: 1%