Whether you're PRObama, NObama, or still undecided, 52 Reasons to Vote for Obama gives you all the information you need to share with friends, debate with relatives and decide for yourself as we head toward one of the most important elections of our lifetime. I'll post a new reason in random order every Monday through Friday from now 'til the election.
[S]mall businesses produce most of the new jobs in this country. They are the anchors of our Main Streets. They are part of the promise of America -- the idea that if you've got a dream and you're willing to work hard, you can succeed. That's what leads a worker to leave a job to become her own boss. That's what propels a basement inventor to sell a new product -- or an amateur chef to open a restaurant. It's this promise that has drawn millions to our shores and made our economy the envy of the world. -- President Barack Obama, at the signing of the Small Business Jobs Act, September 27, 2010
President Barack Obama understands just how critical small businesses are to the American economy. That's why he's cut taxes for small businesses eighteen times since taking office. He's provided $200 billion in tax relief and incentives to American companies in the last three years to encourage new investment and job creation.
The Recovery Act, the Hiring Incentives to Restore Employment (HIRE) Act, and the Affordable Care Act included these tax breaks and credits, giving small businesses the boost they need to be more competitive and create jobs:
- A new small business health care tax credit
- A new tax credit for hiring unemployed workers
- Bonus depreciation tax incentives to support new investment
- Exclusion of small business capital gains
- Expansion of limits on small business expensing
- Five-year carryback of net operating losses
- Reduction of the built-in gains holding period to allow greater flexibility in investments
- Temporary estimated tax payment relief
The Small Business Jobs Act, the most significant piece of small business legislation in more than a decade, had eight specific tax cuts for small business, worth $12 billion:
- Zero capital gains taxes on key investments in small businesses
- The highest small business expensing limit ever -- up to $500,000
- An extension of 50 percent bonus depreciation
- A new deduction for health care expenses for the self-employed
- Tax relief and simplification for cell phone deductions
- An increase in the deduction for entrepreneurs' start-up expenses
- A five-year carryback of general business credits
- Limitations on penalties for errors in tax reporting
Last February, Obama signed a law that allows businesses to expense 100 percent of certain investments, potentially generating more than $50 billion in additional expenditures to fuel job creation.
In November 2011, President Obama signed the VOW to Hire Heroes Act, providing tax credits up to $5,600 to businesses hiring unemployed veterans and up to $9,600 for those hiring veterans with service-connected disabilities.
This year President Obama is pushing Congress to pass more tax cuts to help two million small businesses hire workers and make new investments, discourage outsourcing, and encourage businesses to create jobs here at home. Obama's plan would give a 10 percent income tax credit to firms that create new jobs or increase wages in 2012. He also wants to extend 100 percent expensing so that firms can deduct the full value of certain investments through 2012.
According to the independent, nonpartisan Joint Committee on Taxation, the president's small business jobs and wages tax credit will provide more than $20 billion in direct tax relief targeted toward small businesses in 2012 and 2013, encouraging an additional $200 billion to $300 billion in new wages and jobs.
In addition to the eighteen tax cuts for small business, President Obama has made it easier for small businesses to gain access to the capital they desperately need. In just two years, according to the Small Business Administration, SBA, recovery loans have supported $30 billion in lending to more than 70,000 small businesses. The Small Business Jobs Act provides more than $12 billion in additional lending support, with many of those loans going to rural or minority-, women-, or veteran owned businesses.
The Small Business Jobs Act:
- Provides $30 billion in low-cost capital to community banks for small business loans.
- Expands the number of small businesses eligible for SBA loans.
- More than doubles the maximum loan size for the largest SBA loans; increases the size of manufacturing loans; increases the size of SBA Express loans, which provide immediate access to working capital; and raises microloan limits, helping entrepreneurs and small business owners cover start-up costs.
- Enhances state small business programs, supporting at least $15 billion in additional small business lending, which encourages private-sector lenders to extend credit.
- Strengthens small businesses' ability to compete for and win federal contracts.
- Promotes small business exports.
- Expands training and counseling for small businesses.
Through championing tax relief and more access to credit, President Obama has provided the essential fuel to help small businesses -- the engine of our economy -- expand and create jobs here in America, and drive our nation forward.
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