President Obama urged Congress this week to pass legislation that he said would give small business owners tax breaks and incentive for hiring and increasing wages. His proposal would also eliminate some capital gains taxes for business investments.
The “Startup America” legislative agenda proposes to provide a 10% income tax credit on new payroll for small businesses that added jobs or increased wages in 2012 and to permanently double the amount of startup expenses entrepreneurs can deduct from their taxes to $10,000, according to a White House press release.
The agenda also seeks to extend 100% first-year depreciation for qualified property acquired and placed in service before January 1, 2013 and to allow small businesses and startups to raise money through crowd funding, the release said. The Small Business Investment Company Program would also allow up to $4 billion in annual support, up from $3 billion in the year prior.
Here’s what small business owners have to say about the president’s proposal.
bittle-D, New York City
Co-founder of the organic t-shirt company, Danielle Cascerceri, said the burdens of small business owners are not usually given as much attention as the hardships of large companies. Any help from the government would be a positive for the small business community.
“To see the government offer a few concessions to small businesses is a step in the right direction,” Danielle said. “It’s not easy to start a business in this economic climate and every little bit helps.”
Dorothy Cascerceri, sister and fellow co-founder, said that while the company will likely not bring on any additional staff members due to these incentives, it’s nice to know there is a bonus out there for those who are hiring.
“Costs are such a huge part of starting your own company, so the higher the allowable tax deductions are, the more helpful this legislative agenda will be to people who want to follow their own dreams into the entrepreneur arena,” Dorothy said.
Getaround, San Francisco
“This could potentially open up whole new opportunities for raising growth capital for innovative new businesses like ours. It’s something we’ll be keenly watching,” Zaid said….