On the eve of expiration for a number of key small business tax deductions and with the Small Business Administration running out of funding for small business loans, the U.S. Senate finally wakes up and begins to pay attention to small business. The same sector of the business community they have been touting will pull us out of this economic downturn.
With the guidance and leadership of Senator Mary Landrieu, the current chair of the Senate Committee on Small Business and Entrepreneurship, Senate leadership has finally introduced legislation that includes help for our nation's smallest businesses. The Small Business Jobs Act of 2010 (H.R. 5297) includes a one-year business tax deduction for health insurance costs for the self-employed, an increase in the start-up business expense deduction, expansion of Section 179 expensing limits, increases in SBA loan limits, and a new Small Business Lending Fund to help increase access to capital.
To make things even better, Senator Barbara Boxer, has introduced an amendment to the Small Business Jobs Act to create a standard home office deduction option. This would allow millions of qualifying home-based business owners to forgo complicated paperwork and calculations to take a simple, standard deduction which will save them both time and money.
Can it be that policymakers are realizing that the self-employed -- which number 23 million, represent 78 percent of all small businesses, and contribute close to $1 trillion to the U.S. economy -- are the economic backbone of our country?!
Whatever the impetus behind the Small Business Jobs Act, we're happy lawmakers are starting to pay attention to the self-employed.
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