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Tax breaks by Obama delights small business owners

  Sanjiv Gupta CPA  Published 
Tax breaks by Obama delights small business owners

It was early in 2011 that U.S.president Barack Obama promised to pass tax-break laws to facilitate small business investments and new entrepreneurs plan their expense judiciously. This plan will be an important part of his 2013 budget, officials from the White House report.

 At a recent cabinet meeting, President Obama focused on this area and emphasized it to be one of his agendas in the ensuing Presidential election this year. He expressed his desire that Congress should consider eliminating profit quotient from investment in the small businesses and must extend its wilful help by considering deductions in the purchase of essential equipment and business software. This will help small business owners develop their businesses and will also generate employment.

 At a press meet the President stated that he has come to know that the Democrats and Republicans on Capitol Hill had discussions about his ideas and plans that he has in store for helping small businesses get potential resources and capital. He particularly stressed on the necessity of the Republicans and Democrats working together to pass the tax bill as law. He wants to have it off his desk as early as it may be possible. Once it comes out he will enthusiastically sign the bill and would be happy if the bill is enforced right away.

              Obama hopes that the Congress won’t oppose the bill as they did the previous year. His only concern, however, is the Congress’s opinion on partisan lines. He fears that it might affect agreement and that the issuance of the bill might be delayed. On the contrary, the White House hopes that whatever may be their general point of dissent, the business-friendly matters which are directed towards a common good will surely pull support of both parties.

               The small business ideas that Obama wants to implement and make a part of his February 13 budget package includes a 10 % tax break that is to be enjoyed by all small businesses that will contribute in creating employment or raising wages. Alongside the proposed tax reduction on business start-up expenses. This will help launch small establishments in the commercial market with the least trouble.  He is also keen to remove country-specific restrictions for some immigrant visas so that the US can hire more highly skilled foreign workers and entrepreneurs. Obama said government departments like the energy, education, commerce, and homeland security have been strictly instructed to help the small businesses in the best possible way.