Those who understand Congress expected lawmakers to succeed in passing a small business bill prior to the This falls midterm elections. Democrats got all of the votes needed as 2 Republicans wishing to get re-elected modified their votes to various party lines. Thursday, Senate passed a small business bill, after fighting all summer over it. Many think new jobs will be created with the legislation that should help small businesses get tax relief and make credit easier to reach to. Now the bill can be going to the House to move fast.
Small company tax breaks and lending
The small business bill that finally approved the U.S. Senate Thursday features the creation of a $30 billion lending fund directed to regional banks for lending. The fund is being compared by Republicans to the Troubles Asset Relief Program. Most are calling another bailout that is funded by taxpayers. However the Wall Street Journal reports that unlike TARP, banks actually volunteer to participate in the new small company lending program. The interest rate banks are charged for the money is tied to how much they Use it to increase their small company lending. Part of the small business bill says $12 billion in business tax breaks will be had. Included in this is urgent write-off of 50 percent of 2010 equipment bought year. There will be a double in the amount of new investment small businesses can make in 2010 and 2011. This number is now $500,000.
Principle based votes happen with retiring Republicans
Earlier this year, a smaller version of the small business bill was approved in the House. The Los Angeles Times reports that business entities expected to support the bill, including the United States Chamber of Commerce and the National Federation of Independent Companies, instead chose to Use the legislation as a automobile to weaken the new healthcare reform law. Republicans filibustered, in July, the small business bill. There was hope that other legislation would be added to the bill first. At one point, frustrated House members staged a sit-in at the Senate chamber to protest the delays. Finally months of partisan gridlock were overcome by Republicans George LeMieux of Florida and George Voinovich of Ohio, senators who are not seeking re-election. The measure passed 61-38 after they joined 57 Democrats and two independents.
Further reading
Wall Street Journal
online.wsj.com/article/SB10001424052748703440604575495882236157048.html
Los Angeles times
latimes.com/news/nationworld/nation/la-pn-small-business-bill-20100917,,2992847.story
