A constructive piece of legislation or much ado about nothing?

Every morning I usually find myself on several websites that I consider essential to starting my day after coffee and walking the dog of course. These include USA Today, Boston Herald, Wall Street Journal and my favorite MarketWatch for that day’s top business news. An article entitled “New tax breaks for small businesses” drew me in obviously as I speak with owners every day. I was expecting to read about how the “banksters” and bureaucrats in NYC and DC respectively had finally woken up to the plight of the engine that drives this country and had passed some incentives, tax breaks or anything to move the ball forward. Apparently there is yet another piece of legislation called The Small Business Jobs and Credit Act is about to become law. That’s right another agency, more government jobs and taxpayer funds thrown at the problem. Here are the highlights of the bill (try to keep a straight face):

Depreciation of certain assets ex. up to $8,000 on a new car (how many small biz owners are shopping for cars?)

Cell phones are now no longer “listed property” meaning no more record keeping of private vs. company use

Business owners now may reduce taxable income for the cost of self-employed health insurance (for only 1 year though)

Start up cost deductions increased from $5000 to $10,000 (only for business that started in 2010 though)

Depreciation allowance raised from $250,000 to $500,000 (only for 2010 and 2011)

That’s it…problem solved right? There were a few more provisions in this bill to give the small business owner a hand, but for the life of me I couldn’t understand how unless your business employed hundreds of people and revenues were in the multiple millions these measures make any difference at all in the crisis situation business owners find themselves in today. Just another small bone intended to make it look like the government actually knows what’s it’s doing to create a healthy business climate. Not to be political here, but did you know that this administration’s cabinet contains the smallest percentage of people that actually have ANY private business experience in US history (8%)? But I digress…

Let me suggest real business solutions that I think might help small biz owners put a little extra cash in their pocket. Try this on for size Messrs. Reid, Pelosi, Frank et al:

1. A 20 percent deduction for small business income
2. A permanent Capital Gains tax rate of 15 percent.
3. Repealing the Estate Tax (“death tax”).
4. Reducing the Payroll Tax or even a
5. Repealing the individual and corporate Alternative Minimum Tax (AMT).
6. Providing tax relief for home-based businesses
7. A Balanced Budget Constitutional Amendment (BBA)

And while you’re at it how about concentrating on creating an environment for JOB GROWTH! instead of healthcare, cap & spend, financial reform, education reform, or continually running for re-election ad nauseum.

At Second Wind we focus on saving business’ and allowing our clients to stay in business until sanity and reason returns to Washington DC. We help clients revitalize their passion for their business and give them ideas on how to re-invent themselves by stripping away the cancer that debt brings with it. The word that I like to use is triage and that means performing those actions needed in their special situation that save the patient quickly and efficiently resulting in a return to health and prosperity.