It’s a good thing that we now have a President that talks about how important entrepreneurs and small businesses are to the economy. But now, we need more just than talk.
The President again proposed more help this morning:
1. Eliminate for one year capital gains taxes on new investments in the stock of small businesses. This would be a good thing, but we need more details on how this would help angel and VC investors (if that is who it is directed at).
2. Small businesses would get a tax break for hiring new employees. This is one of my ideas at the beginning of 2009 on what he should do.
Obama can go further by eliminating Employer Matching Federal Withholding Tax for businesses less than 9 people. This will encourage the more than 4M businesses that qualify to hire people full time instead of trying to skirt the laws and use freelancers. More money would go to the employee instead of the myriad of government taxes.
3. Eliminate fees for loans made through the Small Business Administration. It is good to eliminate them but the SBA and Banks need to still open the spigot up wider on these loans. A business can’t save on the fee if they don’t have the loans.
What are your ideas?