With the economy in a tailspin, we need small businesses to succeed more than ever.
While everyone hates adding complexity to tax rules, the current financial startup environment cries out for a special small business startup rate, a special tax incentive to entice money into earlier stage investments.
Barak Obama has included references to such a plan in his campaign literature available on his website:
I have included relevant excerpts of the document below. Among the many missing details is the definition of a startup.
Let's hold the new president's feet to the fire on his promise to help startups so that all of us Joes can help prove America is still the land of opportunity. Innovation from small business must not be allowed to be stifled in this economy.
BARACK OBAMA'S COMPREHENSIVE TAX PLAN (Excerpts)
Barack Obama's tax plan delivers broad-based tax relief to middle class families and cuts taxes for small businesses and companies that create jobs in America, while restoring fairness to our tax code and returning to fiscal responsibility. Coupled with Obama's commitment to invest in key areas like health, clean energy, innovation and education, his tax plan will help restore bottom-up economic growth that helps create good jobs in America and empowers all families achieve the American dream.
The Obama plan will:
Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.
II. TAX CUTS TO ENHANCE COMPETITIVENESS AND HELP CREATE JOBS
Barack Obama's tax plan will help small businesses grow and will encourage job creation in America. He will directly cut taxes for small business and for firms that invest and create jobs in the United States, will relieve healthcare costs for all firms and will reward investments in innovation. Barack Obama pro-business tax policies include:
o Eliminating Capital Gains Taxes for Entrepreneurs and Investors in Small Business. Barack Obama understands that small businesses are the engines of our economy, and he will eliminate all capital gains taxes on investments in small and start up firms.
o Cutting Corporate Tax Rates for Firms that Create Jobs in America. Barack Obama will repeal tax breaks and loopholes that reward corporations that retain their earnings overseas, and will use those savings to lower corporate tax rates for companies that expand or start operations in the United States.
o Offering a Small Business Healthcare Tax Credit: To help small businesses compete in the global economy while still providing quality health insurance, Barack Obama will offer a new refundable 50 percent health tax credit on employee premiums paid by employers. His comprehensive healthcare plan will relieve health costs for all firms by bringing down national healthcare costs by $2,500 per family, annually.
o Making the R&D Tax Credit Permanent. Barack Obama will make the Research and Development tax credit permanent so that firms can rely on it when making decisions to invest in domestic R&D over multiyear timeframes.