Small Businesses May Get Tax Cuts
Obama’s administration is expected to announce on Monday a proposal that would eliminate the capital gain tax on certain types of small business investments held over five years.
If the proposal is passed it would eliminate the capital gain tax, which was passed last year under the small business bill. It would call for $2 billion of investments in small businesses among disadvantage communities. It will also provide training programs and quicken the patent process.
Set to expire this December is the Small Business Jobs Act, in which the capital gains exemption is an extension of.
The White House has also called for the support of larger U.S companies to participate in the “Star Up America Initiative”. The White House is asking companies like AOL, Facebook, IBM and HP to invest and support in smaller businesses trying to start-up. The administration hopes the initiative will create partnerships and collaborations between businesses, investors, and even universities. They also want to create more jobs by getting more business built without worrying about being in debt.
Intel has also joined the “Star Up America Initiative” and has already pledged to invest $200 million to small technology companies across America. IBM also joined the initiative and will invest $150 million.