Obama Small Business Policies: Tax Reforms and Increased Investments
Obama’s recent victory secured his second term as the President of the United States, and as with the start of any new Presidential term, businesses and the general public are eager to see how policy reforms will affect them directly. The Obama small business policies reiterated in his campaign called for action and not politics, which is comforting for entrepreneurs and small business owners. According to the Obama campaign spokesperson Adam Fetcher, there are many specific small business policy reforms planned for the United States over the next four years, which are outlined below.
Tax Cuts
Obama’s small business policies during his first Presidential term saw the introduction of eighteen small business tax credits, which he plans to expand upon during his second term. Furthermore, tax deductions for start-ups will be doubled and small business investments will enjoy zero capital gains. To add, a new ten percent income tax credit will be introduced to counteract the cost of hiring and increased wages.
Access to Loans
The Obama policies on small businesses intend to make access to capital easier and more efficient. The President supports the US Small Business Administration, which has raised the maximum loan amount in its lending schemes. The Obama small business policies also support the Jumpstart Our Business Startups Act (JOBS), which was passed in April this year. This law assists small businesses in sourcing finance whilst keeping investor interests safe. JOBS also provides for crowdfunding, i.e. selling equity to individuals with finance, no matter how small, and not just to large investors.
Boosting Export and Trade
Obama small business policies include provisions for trade. According to the President, his administration will make sure that foreign companies do not have an unfair advantage over American companies offering the same products or services. This will be achieved by the Export-Import Bank offering generous financing to American companies. Last year, the Export-Import Bank paid out a record $6 billion in finance and small business insurance. Obama’s small business policies will also expand the current Trans-Pacific Partnership, which is a trade pact between countries such as Australia, Singapore and Mexico.
Small Business Investing
One of the most important Obama small business policies is geared towards small business investments. In 2009, around $300 million worth of federal-prime contracts were delivered to small businesses. Another Obama small business policy is his call for massive infrastructural developments, which could help boost construction and engineering jobs across the country.
Penny Munroe is an avid writer in business related news and tips. Articles include sourcing the best Brisbane serviced office to search marketing tips.
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